Friday, September 8, 2006, 4:15 PM EST (Thomson Financial Corporate
Services): The Canadian dollar lost steam today as fears of an interest
rate hike arose on softer-than-expected jobs data. While the TSX did not
reach the dismal lows of the last two days, it stayed in the red as jobs
data and weaker oil prices depressed the markets. In energy stocks,
Canadian Oil Sands took over Canada Southern, and in financials, there was
news of a major deal by the Bank of Montreal.
* The S&P/TSX Stock Exchange Composite Index declined 25.45 points, or 0.21%.
* Markets were dismayed by today's jobs data from Statistics Canada,
which revealed that the unemployment rate rose in August to 6.5% from 6.4%
last month, losing 16,000 jobs. While the figures are still near a 30-year
low, they are down for the third straight month. The loss was concentrated
regionally and predominantly in goods-producing industries. The loss was
particularly surprising since analysts had predicted a gain of 20,000 jobs
instead, with a jobless rate of 6.3%.
* Canadian Oil Sands Trust completed its takeover of Canada Southern
Petroleum as it bought 78% of its shares. The takeover offer from Oil Sands
eventually succeeded against suitors Petro-Canada and Canadian Superior,
and totaled C$219 million.
* The former BP head of pipeline-corrosion monitoring, Richard Woolman,
refused to testify in DC about the Prudhoe Bay leak of last month, invoking
his Fifth Amendment rights against self-incrimination. Other executives
have issued apologies for improper inspections of the pipelines.
* The Bank of Montreal made a deal with the China Merchants Bank, and
will help manage its impending US$2.7 billion IPO. BMO is the first
Canadian bank to have such a large part in these increasingly common
partnerships between emerging Chinese banks and commercial advisors.
* RBC and TD have made a move to have their Enron-related lawsuits
dismissed, as a similar case against Barclays was thrown out in Texas. Six
banks are battling a group of shareholders who are suing Enron's former
lenders for US$40 billion. Barclays was the first one up in court, and
Judge Melinda Harmon ruled that it had no liabilities in the case,
dismissing the charges; but each bank will be ruled on an individual basis.
* Oil hit the US$66-a-barrel threshold briefly today before recovering,
closing at US$66.25, down US$1.07. Overall, crude has lost about US$11 in
the last four weeks. All eyes will be on the OPEC meeting in Vienna on
Monday, to see if the organization continues its high pumping rates.
* Gold also continued its decline, finishing down US$7.60 at US$617.30.
-- 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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