Business News

Worries about sovereign debt, global economic recovery push stock markets lower
TORONTO - The Toronto stock market closed lower Monday as investors continued to take profits from the strong rally of 2009 amid worries about the strength of the global economic recovery and sovereign debt issues in Europe. The S&P/TSX composite index lost 107.82 points to 11,115.3, led by falling financial and commodity stocks.
      

Toyota recalling new Prius, other models in Japan for braking problems
TOKYO - Toyota is recalling about 170,000 Prius hybrid cars in Japan for braking problems and will soon disclose its global plans for a fix as the automaker scrambles to repair damage to its reputation from a spate of safety problems. Toyota's president Akio Toyoda will hold a news conference at the automaker's Tokyo office later Tuesday to outline details of the braking problem, including plans for a possible recall in the U.S., a company official told The Associated Press.
      

Commercial airing in D.C. during Olympics stresses Canada-U.S. ties
WASHINGTON - A 30-second commercial lauding the close ties between Canada and the U.S. will air on Washington's NBC affiliate dozens of times during the upcoming Vancouver Winter Games. The organization behind the ad, the Canadian American Business Council, says it marks the first time such a commercial has aired "inside the Beltway" - in other words, to an audience of powerful movers and shakers - during such a significant, avidly watched event.
      

Heating oil and other energy prices rise with more snow headed for Mid-Atlantic
NEW YORK - Energy prices climbed Monday as another winter storm was expected to dump even more snow on the U.S. East Coast. Already, parts of Virginia, Maryland, Pennsylvania and Washington were blanketed in about a metre of snow, knocking out power for tens of thousands of people and forcing government offices to close.
      

Biggest Boeing plane; successful first flight for 747-8 freighter
EVERETT, Wash. - Boeing Co.'s giant 747-8 freighter - the biggest plane the company has ever built - successfully completed its first flight Monday, a year later than originally planned. The huge plane took off from Everett's Paine Field shortly after noon PST (2000 GMT) and returned to Paine at 4:18 p.m. PST (0018 GMT) after an approximately 3½-hour flight.
      

EA loses less money but its outlook is below forecasts, sending stock down
NEW YORK - A disappointing outlook from Electronic Arts Inc. sent shares of the video game publisher sharply lower Monday, a sign that significant cost-cuts and layoffs have not ended the company's slump. The company, whose games include the popular "Madden" series and "Mass Effect 2," said Monday it narrowed its net loss in the last quarter even as game sales declined. It blamed the revenue falloff on having fewer titles than it did in the 2008 holiday period. EA also cited weak sales in Europe, which accounts for about a third of its revenue.
      

It's still a seller's market in housing but it's not a bubble, economists say
MONTREAL - It's still a seller's market for homeowners, but economists say it's not a real estate "bubble." Canada's housing market is on the rebound after a decline in 2009 with resales expected to set a new annual record this year and home building is off to a strong start, according to two reports Monday. There isn't a bubble because of a lack of speculation in the real estate market, said Scotiabank senior economist Adrienne Warren.
      

Real-estate association's rules challenged by federal competition watchdog
TORONTO - Home buyers and sellers may soon be able to choose "a la carte" services from real estate agents if the Canadian Real Estate Association is forced to change its pricing structure, but the association says that's always been the case. Canada's Competition Bureau filed an application with the Competition Tribunal on Monday seeking to strike down the CREA's rules on the use of its Multiple Listing Service.
      

Chrysler says it will invest $550 million to build Fiat 500 at Mexican assembly plant
MEXICO CITY - Chrysler Group LLC says it will invest $550 million to build the Fiat 500 minicar at its assembly plant near Mexico City. Chrysler CEO Sergio Marchionne says the new work at its Toluca plant will create 400 jobs. He said Monday the company will begin making the model in December for U.S. and Latin American markets.
      

Northgate Minerals board gives green light to Young-Davidson mine in Ontario
VANCOUVER, B.C. - The board of Northgate Minerals Corp. (TSX:NGX) has given formal approval to start development of the company's US$339-million Young-Davidson mine, the company said Monday. The project is expected to create 600 jobs during the two-year construction phase and 275 jobs during operating life of the mine near Matachewan in the Abitibi region of northern Ontario.
      

Tech Resources reports $411 million Q4 profit, revenue up from year ago
VANCOUVER, B.C. - Teck Resources Ltd. (TSX:TCK.B) said Monday it earned $411 million in its latest quarter as revenue increased 35 per cent compared with a year ago, helped by sharply higher copper and zinc revenue, offset by lower coal prices. The mining company said its profit amounted to 70 cents per diluted share for the quarter ended Dec. 31 compared with a loss of $607 million or $1.27 per diluted share a year ago.
      

CIBC sees Canadians moving back into RRSPs as investment vehicle this year
TORONTO - Canadian investors will likely return to RRSPs this year after fleeing the retirement investment vehicle during the recession, according to a report from CIBC World Markets (TSX:CM). The report, issued on Monday, said that female and younger investors will lead the way as significant contributors, though it didn't provide any specific growth targets.
      

Xstrata full-year profit falls 41 per cent as downturn hits commodity prices
Swiss miner Xstrata PLC reported a 41 per cent drop in full-year profits Monday and came under pressure from Canada's largest industrial union for the base metals giant's plans to close a smelter in northeastern Ontario. The company reported its profit fell to US$2.77 billion from $4.7 billion in the previous year as last year's recession and the weakness of the U.S. dollar affected global commodity sales.
      

Royal Bank CEO Nixon paid $10.4M in 2009, up 19 per cent from 2008
TORONTO - The chief executive of Royal Bank of Canada (TSX:RY) earned 19 per cent more in 2009 than a year earlier, even as the annual profit of Canada's largest bank fell 15 per cent. RBC's annual disclosure shows CEO Gord Nixon's base salary was unchanged at $1.4 million and he received a $9-million bonus consisting entirely of equity and options in the company. No cash bonus was paid to Nixon in 2009.
      

Husky Energy announces third significant gas discovery in South China Sea
CALGARY - Husky Energy Inc. (TSX:HSE) has announced its third significant discovery in the South China Sea. An exploration well in the waters south of Hong Kong tested natural gas at an equipment restricted rate of 57 million cubic feet per day, with indications the Liuhua 29-1 well could produce more than 90 million cubic feet of gas per day in the future.
      

Chinese train company says its Montreal Metro bid would save taxpayers billions
MONTREAL - A Chinese railway manufacturer says it can save Quebec taxpayers billions of dollars and create up to 1,000 jobs in the city if it beats out a Bombardier-Alstom consortium for the contract to build new subway cars for Montreal's Metro system. Zhuzhou Electric Locomotive said Monday it would assemble the subway cars in a Montreal plant in order to respect the requirement that 60 per cent of the content be Canadian. Components and engineering would likely come from China. "We can do it for less than half of what Bombardier has been quoted as offering and it doesn't matter if it's 300 cars or 1,000 cars," Glen Fisher, president of Zhuzhou's Canadian partner, CPCS Technologies Canada, said in an interview.
      

Canadian potash partnership announces spot sale to China's Sinofert
CALGARY - A partnership representing Saskatchewan's three main fertilizer producers has agreed to sell 350,000 tonnes of potash to a Chinese buyer at what it described only as "competitive" spot prices. The announcement Monday comes about a month after Vancouver-based Canpotex Ltd. and its Chinese counterpart appeared to be at an impasse over an agreement on 2010 potash prices.
      

Investors getting a chance to see whether Madison Square Garden stock can score
NEW YORK - Investors will get a chance to bet directly on the fortunes of the New York Knicks and Rangers and their home arena, Madison Square Garden, beginning Tuesday. Cablevision Systems Corp. is splitting into two, returning the company to its roots as mainly a provider of subscription TV. The newly separate Madison Square Garden Inc. will include the arena, the basketball and hockey teams, regional sports channels and famed theatres such as Radio City Music Hall.
      

Ontario government to launch $1.6M ad campaign on tax changes, including HST
OTTAWA - Ontario's controversial move to harmonize sales taxes will be part of a new $1.6-million government ad campaign that's poised to hit newsstands on Thursday. The print ads, which highlight an income tax cut that took effect Jan. 1, will invite readers to "take a closer look at Ontario's new tax package" by visiting a government website.
      

Vale Inco: we have right to use replacement workers at Sudbury operations
TORONTO - Nickel mining giant Vale Inco says it has the right to use non-striking workers to fill in at its operations in Sudbury, Ont., while the rest of its employees walk the picket lines. Just as workers have the right to strike, companies have the right to replace them, a lawyer for the company argued at an Ontario Labour Relations Board hearing on Monday.