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Loonie moves slightly higher after Japan central bank move, US housing data

Written By empapat on Rabu, 19 September 2012 | 08.06

An American dollar bill and Canadian coins, are seen on Nov. 8 2007 in Quebec City. THE CANADIAN PRESS/Jacques Boissinot

An American dollar bill and Canadian coins, are seen on Nov. 8 2007 in Quebec City. THE CANADIAN PRESS/Jacques Boissinot

TORONTO - The Canadian dollar inched higher on Wednesday morning on the heels of Japan's central bank easing its monetary policy to push for more growth in its economy.

The loonie was up 0.3 of a cent to 102.64 cents US before stock markets opened.

Earlier, the Bank of Japan said it was increasing its asset purchasing fund to 55 trillion yen (US$700 billion) from 45 trillion yen to counter the strength of the Japanese currency. A strong yen makes it more difficult for Japanese companies to compete in international markets.

The Bank of Japan's move comes days after the U.S. Federal Reserve revealed it will purchase an average of $40 billion a month in mortgage-backed securities until the economy shows significant improvement.

Meanwhile, a report from the U.S. Commerce Department said that builders started construction on more homes in August, driven by the fastest pace of single-family home construction in more than two years.

Construction of new homes and apartments rose 2.3 per cent to a seasonally adjusted annual rate of 750,000 last month.

"August starts and permit numbers were so-so, but the broader trends suggest that the U.S. housing recovery is solidifying," said said BMO Capital Markets senior economist Robert Kavcic in a note.

In commodities, the October crude on the New York Mercantile Exchange moved down 47 cents to US$94.82 a barrel.

December bullion fell $3.40 to US$1,767.80 an ounce, and December copper was up nearly two cents to US$3.80 a pound.

© The Canadian Press, 2012

19 Sep, 2012


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Source: http://www.globalnews.ca/Money/loonie+moves+slightly+higher+after+japan+central+bank+move+us+housing+data/6442718083/story.html
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Blackstone reaches deal to buy home security provider Vivint for more than $2 billion

The corporate logo of Vivint Solar Inc. is shown. THE CANADIAN PRESS/HO

The corporate logo of Vivint Solar Inc. is shown. THE CANADIAN PRESS/HO

PROVO, Utah - Blackstone says it has agreed to buy Vivint for more than $2 billion.

Provo, Utah-based Vivint is one of the largest providers of home automation and security services in North America. Its shareholders include Goldman Sachs, Peterson Partners and Jupiter Partners.

As part of the deal, Blackstone will buy solar energy provider Vivint Solar Inc. and automated equipment provider 2GIG Technologies Inc.

New York-based Blackstone Group Inc. says the additions will expand its technology-based holdings. The company will retain its existing management team and continue to expand its sales force.

The deal is expected to close by the end of the year.

© The Canadian Press, 2012

19 Sep, 2012


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Source: http://www.globalnews.ca/Money/blackstone+reaches+deal+to+buy+home+security+provider+vivint+for+more+than+2+billion/6442718004/story.html
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Quebec's CVTech Group awarded three U.S. contracts valued at US$68.8 million

DRUMMONDVILLE, Que. - CVTech Group Inc. (TSX:CVT) has been awarded three contracts valued at roughly US$68.8 million by of one of the largest utility companies in the United States .

The maintenance and construction services company said Wednesday the contracts were awarded to its subsidiary Thirau for the construction, maintenance and emergency services for overhead electrical distribution networks in New York City and suburbs and will last until August 2015.

CVTech provides maintenance of transmission and distribution lines, primarily in Quebec, Ontario and the eastern United States.

The company also specializes in control of vegetation surrounding power lines and in clearing rights of way.

© The Canadian Press, 2012

19 Sep, 2012


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Source: http://www.globalnews.ca/Money/quebecs+cvtech+group+awarded+three+us+contracts+valued+at+us688+million/6442718005/story.html
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General Mills profit climbs on Yoplait, snack food acquisitions

Displayed is a box the General Mills product Fiber One cereal, Tuesday, Sept. 20, 2011, in Philadelphia. THE CANADIAN PRESS/AP, Matt Rourke

Displayed is a box the General Mills product Fiber One cereal, Tuesday, Sept. 20, 2011, in Philadelphia. THE CANADIAN PRESS/AP, Matt Rourke

NEW YORK, N.Y. - General Mills Inc. said Wednesday that its fiscal first-quarter profit rose 35 per cent as acquisitions lifted sales.

The Minneapolis-based maker of brands including Cheerios, Betty Crocker and Hamburger Helper stood by its 2013 earnings outlook of $2.65 per share, not including one-time items.

The results in the latest quarter were boosted by the company's purchase of a controlling stake in Yoplait International in July 2011, as well as Food Should Taste Good, a natural snack foods company, earlier this year.

For the three months ended Aug. 26, the company said it earned $549 million, or 82 cents per share. That compares with $405.6 million, or 61 cents per share, a year ago.

Not including one-time items, the company said it earned 66 cents per share. Analysts expected a profit of 62 cents per share.

Revenue climbed 5 per cent to $4.05 billion. International sales rose 27 per cent to $1.09 billion, driven by growth from acquisitions.

In the U.S., however, the company said net sales declined 1 per cent to $2.49 billion as price hikes failed to offset lower volumes. Although the snack food division saw revenue gains, revenue declined for Big G cereal, frozen foods and Yoplait.

General Mills noted that it introduced more than 100 new products during the period, including extensions of its Chex, Nature Valley and Fiber One brands.

During the second quarter, CEO Ken Powell said the company plans to put its "full advertising support" behind the new items.

Shares of General Mills rose 22 cents to $39.53 in pre-market trading.

© The Canadian Press, 2012

19 Sep, 2012


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Source: http://www.globalnews.ca/Money/general+mills+profit+climbs+on+yoplait+snack+food+acquisitions/6442718001/story.html
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Hibu, publisher of Yellow Pages, warns on restructuring; shares fall by a third

The corporate logo of Hibu PLC is shown. THE CANADIAN PRESS/HO

The corporate logo of Hibu PLC is shown. THE CANADIAN PRESS/HO

LONDON - Hibu PLC, the publisher of the Yellow Pages directories, loses a third of its market value after it warned that restructuring could leave investors with worthless shares.

Shares were down 34 per cent at 0.45 pence in midday trading Wednesday in London.

Hibu, formerly known as Yell Group PLC, is working to build up its digital directories and services but the print sector remains the largest but fast-dwindling part of the business.

The company said it was having "constructive discussions" with lenders, but said some options being considered "may attribute little or no value to the group's ordinary shares."

Hibu operates in Britain, the U.S., Spain, Argentina, Chile and Peru, and had revenue of 1.6 billion pounds ($2.6 billion) in the year ending March 31.

© The Canadian Press, 2012

19 Sep, 2012


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Source: http://www.globalnews.ca/Money/hibu+publisher+of+yellow+pages+warns+on+restructuring+shares+fall+by+a+third/6442717998/story.html
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T-Mobile USA appoints Legere as new CEO, takes over from interim CEO Alling

In this Wednesday Sept. 19, 2007 file photo, an iPhone is displayed next to a T-Mobile sign, in Berlin. THE CANADIAN PRESS/AP, Markus Schreiber

In this Wednesday Sept. 19, 2007 file photo, an iPhone is displayed next to a T-Mobile sign, in Berlin. THE CANADIAN PRESS/AP, Markus Schreiber

NEW YORK, N.Y. - T-Mobile USA has named the former CEO of Global Crossing, John Legere, as its new CEO.

The 54-year-old Legere takes over the post from interim CEO Jim Alling, who has served in that position since June. Alling will now return to his role as chief operating officer.

Before working at Global Crossing, a long-distance telecommunications provider, Legere served as CEO of a Microsoft, Softbank and Global Crossing joint venture called Asia Global Crossing. He has also been an executive of Dell Computer Corp. and AT&T.

T-Mobile USA, which is based in Bellevue, Wash., is the U.S. cellphone business of Germay's Deutsche Telekom AG.

© The Canadian Press, 2012

19 Sep, 2012


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Source: http://www.globalnews.ca/Money/t-mobile+usa+appoints+legere+as+new+ceo+takes+over+from+interim+ceo+alling/6442718025/story.html
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US housing starts rose 2.3 per cent in August, buoyed by single-family construction

In this Tuesday, Aug. 14, 2012, photo, a customer walks past building products at a Home Depot store in Nashville, Tenn. U.S. builders started construction on more homes in August, driven by the fastest pace of single-family home construction in more than two years. The Commerce Department says construction of new homes and apartments rose 2.3 percent to a seasonally adjusted annual rate of 750,000 last month. (AP Photo/Mark Humphrey)

In this Tuesday, Aug. 14, 2012, photo, a customer walks past building products at a Home Depot store in Nashville, Tenn. U.S. builders started construction on more homes in August, driven by the fastest pace of single-family home construction in more than two years. The Commerce Department says construction of new homes and apartments rose 2.3 percent to a seasonally adjusted annual rate of 750,000 last month. (AP Photo/Mark Humphrey)

WASHINGTON - U.S. builders started work on more homes in August, driven by the fastest pace of single-family home construction in more than two years. The increase suggests the new-home market is gaining strength.

The Commerce Department says construction of homes and apartments rose 2.3 per cent to a seasonally adjusted annual rate of 750,000 last month.

Single-family housing starts rose 5.5 per cent to an annual rate of 535,000 homes, the best pace since April 2010. Apartment construction fell 4.9 per cent. Applications for building permits fell 1 per cent to an annual rate of 803,000, down from a four-year high in July.

The rate of construction and level of permits remain about half the pace considered healthy. But the steady gains suggest the housing recovery could endure.

Confidence among builders rose in September to the highest level in more than six years, according to a survey released Tuesday by the National Association of Home Builders/Wells Fargo. And builders are more confident that sales will improve over the next six months, the survey noted.

Sales of both new and previously occupied homes are running ahead of last year. Home prices are increasing more consistently, in part because the supply of homes has shrunk and foreclosures have eased. And mortgage rates remain near record lows, a strong enticement for potential buyers with good credit.

The economy will likely benefit if home prices continue to rise. When that happens, Americans typically feel wealthier and boost consumer spending, which drives 70 per cent of growth.

Even with the gains, the housing market remains weak. Many would-be buyers are having difficulty qualifying for loans or can't afford the larger down payments being required by banks.

Though new homes represent less than 20 per cent of the housing sales market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to the NAHB's data.

The Federal Reserve last week announced new stimulus measures intended to keep mortgage rates low for the next few years.

Fed Chairman Ben Bernanke said the bank would purchase $40 billion of mortgage-backed securities each month until the job market improves "substantially." That could push down longer-term interest rates and spur more borrowing and spending.

The Fed also hopes that lower mortgage rates will accelerate the housing market recovery and boost home prices. That, in turn, could make people feel wealthier and more willing to spend, which would bolster economic growth.

© The Canadian Press, 2012

19 Sep, 2012


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Source: http://www.globalnews.ca/Money/us+housing+starts+rose+23+per+cent+in+august+buoyed+by+single-family+construction/6442718008/story.html
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Stuart Olson gets $147-million contract to expand Winnipeg Convention Center

The Investors Group Field under construction by Stuart Olson Dominion Costruction Ltd. is shown in Winnipeg on June 15, 2012. THE CANADIAN PRESS/Trevor Hagan

The Investors Group Field under construction by Stuart Olson Dominion Costruction Ltd. is shown in Winnipeg on June 15, 2012. THE CANADIAN PRESS/Trevor Hagan

CALGARY - A $147-million contract to design and build an expansion of the Winnipeg Convention Center has been awarded to Stuart Olson Dominion Costruction Ltd.

The project will enlarge the existing complex in downtown Winnipeg by about 400,000 square feet.

It will also include energy and environmental design improvements.

The contract was announced by Stuart Olson's Calgary-based parent, The Churchill Corporation (TSX:CUQ).

The company expects the project to be completed in the last quarter of 2015.

© The Canadian Press, 2012

19 Sep, 2012


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Source: http://www.globalnews.ca/Money/stuart+olson+gets+147-million+contract+to+expand+winnipeg+convention+center/6442718023/story.html
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South Africa miners celebrate wage deal reached with Lonmin

Miners sing and dance in Lonmin Platinum Mine near Rustenburg, South Africa, Tuesday, Sept. 18, 2012. THE CANADIAN PRESS/AP, Themba Hadebe

Miners sing and dance in Lonmin Platinum Mine near Rustenburg, South Africa, Tuesday, Sept. 18, 2012. THE CANADIAN PRESS/AP, Themba Hadebe

MARIKANA, South Africa - Lonmin Platinum's 28,000 miners celebrated a wage deal Wednesday that ended a deadly strike, but labour unrest at a different mine took a violent turn when police broke up what they called an illegal gathering near the town of Rustenburg.

"Police asked them to disperse and when they wouldn't, police used tear gas, stun grenades and rubber bullets to disperse the crowd," said Gauteng province police spokesman Dennis Adriao. "We've said from the start that we would not tolerate illegal gatherings."

That strike is at Amplats mine near Rustenburg, owned by Anglo American Platinum which earlier claimed its workers were not striking, but that it had shut down operations to ensure their safety against violent threats.

At Marikana, the scene of the protracted strike by Lonmin miners, thousands gathered and sang the national anthem in piercing heat, holding up umbrellas to block the sun. Workers cheered and laughed as they walked into the Wonderkop stadium in Marikana near the Lonmin mines. Many said they were happy to return to work Thursday and that the strike that saw 45 people killed has finally come to an end.

Lonmin agreed to a gross pay of 11,078 rand ($1,385) to rock drill operators who had been demanding a monthly take-home wage of 12,500 rand ($1,560). They also agreed to give all miners a once-off payment of 2,000 rand ($250) as a bonus for returning to work. A statement from the company said that miners will receive between 11 and 22 per cent wage increases.

"I am so happy," said Mvenyeza Luhlaziyao, 48, a painter at the mines. "I try to forget the past and continue to move forward to build on the company and make it all all right. We must continue to build the company and management must listen to us in the future. People didn't care about us, that's why we decided to go on strike."

Riddick Mofokeng, another miner, said he also felt good about the deal.

"It is not what we expected to get, but it is great," he said. "Most of the people, we are ready to go back to work."

Zolisa Bodlani, a leader for the mine workers in the strikes, said the agreement is noteworthy. "If no people were killed, I'd say this was a great achievement," he said. "We've never in the history of South Africa had such an increase of pay as 22 per cent."

Two wives of winch operators expressed their pleasure that the strike had ended. "The weeks without pay were terrible," said Plaxedes Matemba, a 39-year-old mother of two.

"It will make life better for us," she said of the pay raise. "We expect better changes again ... there will be no more provoking, no more noise, no more beatings," she said.

Portia Mhlanga, a 22-year-old whose partner is a brick layer, said the return to work will also be good for her. "People will now buy things, and there will be more work," she said.

Bodlani said the workers will return to Lonmin's Marikana mine on Thursday morning, but they will not go underground.

"They will receive counselling and training for a few days," he said. The miners living in the Wonderkop informal settlement also hope to make a memorial of the rock hill where they saw 34 of their colleagues killed by police, he said.

Joseph Mathunjwa, of the Association of Mineworkers and Construction Union, said that they will be putting a trust fund together for the families who lost members to the shootings.

Delegates from unions, strikers not represented by unions, and the London-registered company signed the final wage deal late Tuesday night in Mooinooi, close to Marikana.

The agreement for the company's miners ends a strike with political and economic repercussions, but does not resolve South Africa's huge economic inequality and the government's failure to address massive unemployment and poverty.

© The Canadian Press, 2012

19 Sep, 2012


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Source: http://www.globalnews.ca/Money/south+africa+miners+celebrate+wage+deal+reached+with+lonmin/6442718011/story.html
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Toronto stock market ticks up while commodity prices weaken

A man walks past a building in Toronto that used to house the Toronto Stock Exchange on August 18 2011. THE CANADIAN PRESS/Aaron Vincent Elkaim

A man walks past a building in Toronto that used to house the Toronto Stock Exchange on August 18 2011. THE CANADIAN PRESS/Aaron Vincent Elkaim

TORONTO - The Toronto stock market was slightly higher out of the gate as commodity prices pulled back.

The S&P/TSX composite index advanced 9.01 points to 12,431.72 shortly after the open.

October crude on the New York Mercantile Exchange moved down $1.70 to US$93.59 a barrel.

December bullion fell $1.20 to US$1,772.40 an ounce.

On Wall Street, the Dow Jones industrials gained 2.55 points to 13,567.19. The Nasdaq composite index dipped 4.56 points to 3,173.24 and the S&P 500 index was 0.89 of a point lower to 1,458.43.

The Canadian dollar was off 0.1 of a cent to 102.51 cents US.

© The Canadian Press, 2012

19 Sep, 2012


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Source: http://www.globalnews.ca/Money/toronto+stock+market+ticks+up+while+commodity+prices+weaken/6442718019/story.html
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