Friday, August 11, 2006, 4:15 PM ET (Thomson Financial Corporate
Services): Bay Street hardly budged as the effects of the terrorist plot
uncovered yesterday continued to ripple through the economy, and it also
tried to parse a great deal of news from business and governments. Teck
Cominco, Inco (which attracted yet another suitor), and Eurozinc led
minerals stocks upward, although gold companies dipped as investors took
earnings. Apple Computer and UnitedHealth rocked Wall Street as stock fraud
problems caused them to announce a delay in quarterly reports. In Canadian
earnings news, ACE did so well it plans an IPO for Air Canada, while
Iamgold rode high gold prices to a record profit. Finally, housing and
retail sales data was released on both sides of the border.
* The S&P/TSX Stock Exchange Composite Index fell 14.15 points, or
0.12%.
* ACE Aviation Holdings, the parent of Air Canada, trumpeted a
second-quarter profit up 40% to C$236 million or C$2.05 per share, compared
to last year's C$169 million or C$1.50 per share, on major one-time gains.
It plans to offer a minority stake in Air Canada, in the wake of successful
IPOs for its Aeroplan and Jazz branches.
* Inco has acquired yet another suitor, from South America this time:
Brazilian Comphania Vale do Rio Doce, the world's largest iron-ore
producer, is offering an all-cash C$17 billion. The offer works out to C$86
per share, and matches Teck Cominco's cash-and-stock offer. Teck and Inco
jumped up, leading the minerals sector to gains today. Meanwhile, Inco's
chosen American swain, Phelps Dodge, is still hopeful but increasingly
concerned.
* An exception to the downturn in the yellow metal today was Iamgold
Corporation, which reported a soaring profit of US$29.8 million, or US$0.17
per share, up from US$2.4 million, or US$0.02 per share, last year. The
company credited its acquisition of Galley Gold, burgeoning gold prices,
and a 39% increase in production.
* Oil started the week being battered by the Alaskan pipeline shutdown
and ended it vacillating in the fogs of confusion of terrorism. On Friday,
after BP revealed the shutdown would not be as widespread as feared, the
terrorists were being caught, and OPEC was enlisted to help cover
shortfalls, crude began to recover, closing up US$0.35 at US$74.35.
* The yellow metal was subject to a hurried sell-off before the
weekend, dropping US$1.60 to close at US$644.40.
* Statistics Canada said the new housing price index went up 1.4% in
June from May. Prices at sale have leapt up 9.8%, due mostly to labour and
land costs.
* U.S. retail sales jumped 1.4% in July, reported the Commerce
Department. This is the largest rise in six months, easily topping
estimates of 0.8%, and comes after a 0.4% drop in June. Although August is
also expected to be strong due to back-to-school business, one analyst
described the data as the "last gasp" of American consumers before consumer
confidence and job growth ebbs.
-- Carolyn.Crapo@contractor.Thomson.com; Thomson Financial Corporate Services
This is Thomson Financial Corporate Services Canadian Commentary, which
is updated twice daily. The information herein is believed to be true and
accurate, we take no responsibility for inaccurate information and reserve
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SOURCE Thomson Financial Corporate Group
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