FP SUMMARY
H U R R I C A N E R I T A Major refiners in Texas closed down operations as Hurricane Rita approached shore yesterday. Houston’s port, the secondlargest in the United States, and the region’s main trucking terminal also shut. Conservative estimates of total loses from both Hurricane Katrina and Rita are at least US$71-billion, according to one economist. However, a huge rebuilding effort could provide economic stimulus next year.
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D A V I D D O D G E The surging Canadian dollar, which briefly rose above US86¢ yesterday, may not be entirely driven by economic fundamentals, according to Bank of Canada governor David Dodge. His comments yesterday suggest the bank may not go ahead with interest rate hikes when it next meets on Oct. 18.
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B O M B A R D I E R I N C . Bombardier Inc. is expected to close a US$1.4-billion to US$1.7-billion aircraft financing deal within days that may allow it to sell more regional jets. The bankruptcy of Delta Air Lines and extra aid from the Quebec government appear to have provided a late boost for the deal.
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B A N K M E R G E R S Bank of Canada governor David Dodge said yesterday consolidation among Canadian financial institutions could provide efficiency gains across the economy. He said mergers between banks, or with other financial-services firms, could bring lowercost corporate and retail lending. However, concentration of market power and foreign ownership remain concerns.
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M I N I N G Mining exploration budgets are expected to reach US$ 5.1- billion this year, the highest since peaking in 1997. Spending has risen 38% from 2004, as base metal prices for copper, zinc and nickel continue to be strong. Canada remains the top destination for exploration dollars.
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A L B E R T A B U D G E T S U R P L U S Alberta Premier Ralph Klein said the province’s budget surplus could be as high as $8.8-billion. This would more than triple current estimates if oil and gas prices stay high, he said. Resentment is building across the country about Alberta’s prosperity, but Mr. Klein reminded Eastern Canadians that resources belong to provinces under the Constitution.
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C A N W E S T G L O B A L
C O M M U N I C A T I O N S C O R P. CanWest Global Communications Corp. has made another move into the Turkish radio business. CanWest announced yesterday that its local partner in Turkey, Turkom, has been awarded the rights to acquire the assets of Metro FM for US$22.8-million. CanWest made a similar move on Wednesday, acquiring Istanbul music station Super FM.
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B A N K O F N O VA S C O T I A Bank of Nova Scotia is incorporating the investment banking division of its Mexican bank Inverlat into its investment bank, Scotia Capital. The move, billed as the first and only NAFTA bank with expertise in Canada, the U.S. and Mexico, is intended to help Scotiabank compete with major international banks.
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