Reuters Canada Business Summary

www.morningstar.ca 2 Feb 03(11:12 AM) |  E-mail Article to a Friend

Bay St Week Ahead-Gold Stocks' Glitter Seen Undimmed

TORONTO (Reuters) - Canadian gold-mining stocks haven't hit the ceiling yet, analysts say, even though surging bullion prices and war fears have already lifted them about 20 percent in the past year. Investors traditionally rush to gold stocks as an insurance policy in times of conflict, and with growing momentum toward a war with Iraq, gold issues remain in the spotlight.

Stocks Retreat Dashes Investors' Hopes

NEW YORK (Reuters) - A few months ago, many of financial planner Derek Hobbs' clients decided to plunge back into the stock market, believing the worst was over. Now, their hopes of a rebound after three dismal years have been dashed once again after yet another fizzled rally this month slammed stocks back down to mid-October levels.

OPEC Gears Up to Ward Off Q2 Oil Price Crash

ABU DHABI (Reuters) - OPEC is already gearing up to fend off an oil price collapse that might follow any U.S. assault on major Gulf producer Iraq. Although world oil prices have shot well past $30 a barrel amid war fever and political turmoil in OPEC member Venezuela, key oil ministers are warning that markets could tip into oversupply during the second quarter and spark a price crash.

Canada Says Open to Short-Term Softwood Export Tax

OTTAWA (Reuters) - Canadian Trade Minister Pierre Pettigrew said Friday he was open to the idea of a short-term export tax on Canada's softwood shipments to the United States as long as it led to a long-term solution. 'I'm looking for a long-term policy-based resolution. Should an export tax, as an interim measure with clearly identified exit ramps from it, be useful eventually, we could look into it. But that's not where we are -- we want a long-term policy-based resolution,' he told Reuters.

Investors Reports Higher Profit, Raises Dividend

TORONTO (Reuters) - Investors Group <IGI.TO>, Canada's biggest mutual fund company, reported a stronger fourth-quarter profit Friday and raised its dividend, sending its stock up more than 7 percent. The Winnipeg, Manitoba-based firm saw earnings rise as a sharp fall in operating expenses offset a decline in revenues and funds under management triggered by the worst bear market in decades.

Shell Canada CEO Oversaw Oil Sands, Set to Retire

CALGARY, Alberta (Reuters) - Shell Canada Ltd. <SHC.TO> chief executive Tim Faithfull, who presided over construction of the C$5.7 billion ($3.7 billion) Athabasca oil sands project, its biggest development, will retire in July after four years at the helm, the company said Friday. Faithfull will be replaced as CEO of Canada's No. 2 oil producer, refiner and marketer by Linda Cook, now the London-based head of global gas and power at Royal Dutch/Shell Group <RD.AS> <SHEL.L>, Shell Canada's majority owner.

TransAlta Reports Loss on Hefty One-Time Charges

CALGARY, Alberta (Reuters) - TransAlta <TA.TO> reported a fourth-quarter loss Friday after Canada's biggest investor-owned power generator took one-time charges for the phased shutdown of an aging Canadian power plant, a turbine order cancellation and intensified plant maintenance. TransAlta, with generating stations in Canada, the United States and Mexico, warned of the loss in November, saying the moves were needed to weather weak power markets. Pretax charges totaled C$180 million ($118 million).

Kinross, TVX, Echo Bay Gold Merger Approved

TORONTO (Reuters) - Kinross Gold <K.TO> said Friday that shareholders of TVX Gold and Echo Bay Mines had approved the three-way merger of the Canadian miners, which will create the world's seventh-largest gold producer with output of 2 million ounces annually. The new entity, which will operate under the Kinross name, will begin trading on both the Toronto Stock Exchange (TSX) and New York Stock Exchange Monday and will reflect the three-for-one common share consolidation approved this week by Kinross shareholders.

Decoma Bids 10 Million Euros for Peguform Assets

TORONTO (Reuters) - Decoma International <DECa.TO>, a Canadian autoparts maker, said Friday it made a 10 million euro ($10.8 million, or C$16.4 million) bid for certain assets and businesses of France's financially troubled Peguform. In a release, Decoma said had bid 6 million euros for Peguform's fascia manufacturing business and fixed and intangible assets, and also bid up to 4 million euros for the work-in-progress, raw materials and finished goods inventory of the autoparts company.

New Brunswick to Overhaul Electricity Market

FREDERICTON, New Brunswick (Reuters) - The government of New Brunswick unveiled legislation Friday to open the province's wholesale electricity market and turn its NB Power utility into a commercial venture. But, unlike Ontario and California, where privatization efforts were dramatic and expensive failures, the eastern Canadian province said it was not making any changes in the retail electricity market.