*TOP NEWS* Canada

Reuters: [2008-05-09 23:13:00]

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TOP STORIES 
> No infectious outbreak on Canadian train-officials  [nN09496954] 
> Canada blocks Alliant Tech's satellite purchase     [nN09414895] 
> Canada jobless rate rises unexpectedly to 6.1 pct   [nN09168649] 
> Canada March trade surplus widens on energy prices  [nN09478230] 
    
BUSINESS 
> ACE launches C$500 mln buyback as net income falls  [nN08414708] 
> Air Canada adds fuel surcharge as oil prices soar   [nN09506040] 
> Manitoba Telecom profit gets wireless lift          [nN09464359] 
> Power Corp of Canada net income rises on gain       [nN09484001] 
> GMP Capital first-quarter profit drops 53 pct       [nN09458976] 
> Cott delays US regulatory filing, cites tax issue   [nN09473960] 
> Canadian shoppers see some gains as C$ holds firm   [nN09174071] 
    
MARKETS 
> Toronto stocks hit by profit-taking despite oil     [nN09516009] 
> Canadian dollar up over a cent, bonds rally         [nN09282110] 
> Big banks may get bruised again                     [nN09479276]    
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Argentine stocks rise on safe-haven buying

Reuters: [2008-05-09 23:07:00]

BUENOS AIRES, May 9 (Reuters) - Argentine stocks bucked the downward regional trend on Friday because of safe-haven buying triggered by a prolonged farming conflict and a further weakening of the peso, traders said.

The MerVal index <.MERV> of leading stocks closed up 0.59 percent to 2,114.44 points, accumulating a gain of 0.32 percent over the course of the week despite jitters over renewed anti-government protests.

"The MerVal steered away from the global losses because a variety of rumors drove investors to look for refuge in stocks," said Ruben Pascuali, a trader at the Mayoral Bursatil brokerage.

Volume on the broad market swelled to a moderate $32 million and of active issues, 47 advanced, 24 declined and 11 were unchanged.

"Against the backdrop of uncertainty, investors found the best refuge in Petrobras Energia Participaciones <PCH.BA>," Pascuali said.

Stock in the energy firm, the Argentine arm of Brazilian state oil company Petrobras, closed up 3.83 percent to 4.33 pesos per share after it reported a higher first-quarter net profit.

Farmers lined highways for a second day on Thursday in fresh protests against a sliding-scale of grains export taxes that triggered a three-week farm strike in March.

Jitters over the dispute fueled dollar purchases, sending the Argentine peso lower for a fourth straight session. In informal trade between foreign exchange houses, as measured by Reuters, it depreciated by 0.46 percent to 3.265/3.27 per dollar <ARSB=.

However, in formal interbank trade -- where the central bank intervenes in the market to keep the currency stable -- the peso firmed by 0.08 percent to 3.175/3.1775 per dollar <ARS=RASL>.

Fresh farming protests continued to feed the cautious mood in the debt market, with locally traded bonds <AR/BONOS> falling by 0.2 percent on average due to profit-taking of gains racked up earlier in the session.

Peso-denominated Discount bonds fell 0.4 percent in over-the-counter trade while the same bond in dollars rose by the same margin.

Expectation over the release of the April inflation figure -- 0.8 percent -- also caused caution. More than 40 percent of Argentina's debt load is indexed to inflation. (Reporting by Walter Bianchi; Writing by Helen Popper; Editing by Diane Craft) ((helen.popper@thomsonreuters.com; +54-11-4318-0655; Reuters Messaging: helen.popper.reuters.com@reuters.net))

Keywords: MARKETS ARGENTINA/

Canadian dollar up over a cent, bonds rally

Reuters: [2008-05-09 22:52:00]

    By John McCrank 
    TORONTO, May 9 (Reuters) - The Canadian dollar rose more 
than a cent against the U.S. dollar on Friday, a move 
attributed to technical factors as well as domestic jobs data, 
against a positive backdrop of record-setting oil prices. 
    Domestic bond prices rallied, playing catch-up with the 
larger U.S. market. 
    The Canadian dollar closed at C$1.0056 to the U.S. dollar, 
or 99.44 U.S. cents, up from C$1.0171 to the U.S. dollar, or 
98.32 U.S. cents, at Thursday's close. 
    It was a choppy week for the currency, bouncing from C$1.02 
to the U.S. dollar to parity over two days, and then back to 
C$1.0170 in two days, but ultimately it ended 1.4 percent 
higher. 
    "I don't think there is anything really in terms of data 
releases that would have spurred that level of volatility," 
said Gareth Sylvester, senior currency strategist at HIFX in 
San Francisco. 
    "So that would lead us to suggest it was more of a 
technical-style move rather than anything else," he said. 
    The Canadian dollar shot higher early in the session after 
a report showed the economy performed better than expected in 
April. The currency then gave back some of its gains as details 
of the data were digested. 
    The Statistic Canada report showed 19,200 jobs were created 
in April, while 10,000 had been expected. 
    Other details, however, showed the unemployment rate edged 
higher to 6.1 percent from 6.0 percent in March, the wage 
measure component eased, and private-sector employment 
declined. 
    "The continuing shedding of manufacturing jobs is really a 
concern," Sylvester added. "You're sitting at 111,000 jobs lost 
year-to-date (in manufacturing), so that's still a concern." 
    With the mixed reading, the week's most anticipated piece 
of data did nothing to alter the outlook for domestic interest 
rates. The Bank of Canada is still expected to lower its key 
rate by 25 basis points to 2.75 percent at its next scheduled 
announcement date on June 10. 
    A rise in oil prices to a new high above $126 a barrel 
provided a positive backdrop for the Canadian dollar. However, 
concerns about the sustainability of prices at that level, in 
light of slowing global growth, prevented crude from being a 
rallying point for the currency, Sylvester said. 
    Other domestic data showed the rising prices for oil and 
natural gas exports boosted Canada's trade surplus to C$5.53 
billion in March. 
    
    BONDS RISE 
    Bond prices rose, ignoring the higher headline numbers in 
the economic data, as they were not seen altering the interest 
rate outlook. 
    "You had a big move down in U.S. yields this week that 
Canada really was somewhat insulated from, and I think it's 
just a bit of a  catch up for that," said Mark Chandler, fixed 
income strategist at RBC Capital Markets. 
    Bond yields in prices move in opposite directions. 
    The two-year bond was up 5 Canadian cents at C$102.02 to 
yield 2.731 percent. The 10-year rose 39 Canadian cents to 
C$103.16 to yield 3.587 percent. 
    The yield spread between the two- and 10-year bonds was 
85.6 basis points, down from 87.8 at the previous close. 
    The 30-year bond added 98 Canadian cents to C$115.53, for a 
yield of 4.082 percent. In the United States, the 30-year 
treasury yielded 4.527 percent. 
    The three-month when-issued T-bill yielded 2.62 percent, up 
from 2.60 percent at the previous close. 
 ((john.mccrank@thomsonreuters.com; +1 416 941 8083; Reuters 
Messaging: john.mccrank.reuters.com@reuters.net)) 
    For Reuters bond and money market pricing information 
double click on one of the following: 
 <CAD=>      Canadian dollar live quote, high/low 
  <FXNEWS>  Headlines from global forex markets 
 <CDBN>      Canadian bond prices 
 <CDMM> <CDMN> <0#CAMMKT=> Canadian money market prices 
 <CABONEA>   Canada-U.S. spreads (live) 
 <YLDS1>     World yield index 
 <CA30YT=RR> 30 year benchmark 
 <0#CGB:> <CGBc1> <CA/FACTOR1> <MEIRP> - Montreal Exchange 
   bond futures pricing information 
 <CAMCI=>    Bank of Canada monetary conditions index (Reuters 
calculation) 
 <CACALL=>   Canada's call loan or overnight lending rate 
 <=CAD>      Canadian dollar G10 trade-weighted index. 
 
   For the fixed-income market speed guides, double click on 
one of the following: 
  
  <CA/MMKT1> <CA/MMKT2> <CA/DEBT> <BONDS> <TREASURY> For 
related news, double click on one of the following: 
 [CAN]  Canadian news 
 [NAT]  North American Treasuries news 
 [M]    Money news 
 [D]    Debt news 
 [MF]   Markets news 
 [GVD]  Government debt news 
 [MMT]  Money market news 
 [INT]  Interest rate news 
 [CEN]  Central bank news 
 [CA/]  Canadian bond market stories 
Keywords: MARKETS CANADA DOLLAR BONDS 
    

Mexico bonds slide to 4-month low, stocks fall

Reuters: [2008-05-09 22:50:00]

(Recasts; adds quote, details)

MEXICO CITY, May 9 (Reuters) - Mexican bonds fell on Friday for a third straight day after inflation hit a three-year high, while stocks slipped, dragged down by losses in shares of miners as global metals prices fell.

The government's benchmark 10-year peso bond <MX10YT=RR> fell 0.462 of a point in price to bid 98.12, pushing its yield up 7 basis points to 8.03 percent, a four-month high.

The benchmark IPC stock index <.MXX> lost 0.25 percent to 30,674.36 points while the peso <MXN=> <MEX01> weakened slightly, down 0.04 percent to 10.5755 per dollar at the official central bank close.

Consumer prices rose 4.55 percent in the 12 months through April, well above the level the central bank says it can tolerate, and reinforced expectations this week that borrowing costs will not be coming down anytime soon.

"This is making people nervous that the central bank could raise its reference rate," said Miguel Gaytan, a fixed-income analyst at consultancy Bursametrica Management.

Mexico's central bank has held interest rates at 7.5 percent for six months since last hiking in October 2007.

In stock trading, miner Grupo Mexico <GMEXICOB.MX>, one of the world's biggest copper producers, lost 2.13 percent to 78.16 pesos as copper futures fell as inventories in London and Shanghai surged.

Miner Penoles <PENOLES.MX>, whose subsidiary Fresnillo Ltd is the world's biggest producer of refined silver, lost 3.36 percent to 299.76 pesos.

Penoles floated Frenillio on the London exchange on Friday, raising 905 million pounds ($1.77 billion), as part of a strategy to separate its precious metals from its base metals units.

Mexican airport operator GAP <GAPB.MX> plunged 8.18 percent to 39.07 pesos, the biggest drop the stock has seen since it was listed in April 2006, after it reported on Thursday that its April passenger traffic fell 5.3 percent.

Losses in the IPC index were offset by gains at top retailer Wal-Mart de Mexico <WALMEXV.MX>, which added 1.34 to 43.81 pesos.

Shares of petrochemical producer Mexichem <MEXCHEM.MX> jumped 5.68 percent 78.36 pesos, its biggest single day gain in four months, after Citigroup raised its one-year target price for the stock to 127 pesos from 80 pesos on the possibility of a joint venture in its fluorine business. (Reporting by Michael O'Boyle and Lizbeth Salazar) ((michael.oboyle@reuters.com; +5255-5282-7160; Reuters Messaging: jason.lange.reuters.com@reuters.net)) Keywords: MARKETS MEXICO/

DIARY-Federal Reserve Events

Reuters: [2008-05-09 22:34:00]

    TO HAVE EVENTS INCLUDED, PLEASE CONTACT THE WASHINGTON 
NEWSROOM AT 202-898-8370/202-898-8318, OR BY FAX AT 
202-898-8383 OR 202-842-2527 
    THIS DIARY IS FILED DAILY. 
 
    ***Denotes a new entry. 
    -------------------------------------------------------- 
    MEETINGS 
 
    FOMC MEETING DATES (one-day meetings on Tuesday; two-day 
meetings Tuesday-Wednesday, except where noted. Decision 
released on second day of two-day meetings) 
    2008 
    June 24-25 (Decision expected at 1415 EDT/1815 GMT) 
    August 5 (Decision expected at 1415 EDT/1815 GMT) 
    September 16 (Decision expected at 1415 EDT/1815 GMT) 
    October 28-29 (Decision expected at 1415 EDT/1815 GMT) 
    December 16 (Decision expected at 1415 EST/1915 GMT) 
    2009 
    January 27-28 (Decision expected at 1415 EST/1915 GMT) 
 
---------------------------------------------------------- 
    FEDERAL RESERVE CHAIRMAN BEN BERNANKE 
 
    Tuesday, May 13 
    WASHINGTON -  Federal Reserve Chairman Ben Bernanke speaks 
VIA SATELLITE on "Federal Reserve Liquidity Measures" before 
the Federal Reserve Bank of Atlanta's "Financial Market 
Reforms: Taking Stock" 2008 Financial Markets Conference in Sea 
Island, Ga., 0820 EDT/1220 GMT. No Q&A. Contact: Pierce Nelson, 
404 498 8748 or pierce.nelson@atl.frb.org; or Jean Tate, 404 
498 8035 or jean.tate@atl.frb.org. Coordinates: Satellite: 
Horizons 2; Band KU; Transponder 15; Slot E, 9MHz; Downlink 
Freq. 11922.5000 (V) 
    
    Thursday, May 15 
    CHICAGO - Federal Reseve Chairman Ben Bernanke speaks on 
"Risk Management and Banking Operations" before the Federal 
Reserve Bank of Chicago's "Bank Structure and Competition 
Credit Market Turmoil: Causes, Consequences and Cures" 
conference, 0830 CDT/0930 EDT/1330 GMT. Audience Q&A expected. 
Hotel Intercontinental, 505 N. Michigan Ave. Contact: Laura 
LaBarbera, 312 322-2387 or Laura.LaBarbera@chi.frb.org. 
Information:   
http://www.chicagofed.org/news_and_conferences/conferences_and_events/2008_bsc_agenda.cfm 
 
    Thursday-Friday, May 29-30 
    BASEL, Switzerland - Bank for International Settlements' 
Basel Committee on Banking Supervision hosts "Risk Transfer 
Mechanisms and Financial Stability" conference. Speakers 
include (INVITED) Federal Reserve Chairman Ben Bernanke. 
Details TBA. Information:  
http://www.bis.org/bcbs/events/rtf08rtmfs.htm 
 
    Wednesday, June 4 
    CAMBRIDGE, Mass. - (INVITED) Federal Reserve Chairman Ben 
Bernanke speaks at Harvard University, 1400 EDT/1800 GMT. 
Speech topic, Q&A, other details TBA. Harvard Yard, 
Tercentenary Theater. Contact: 617 495-1585. Information: 
http://www.news.harvard.edu/gazette/2008/04.10/99-classday.html 
  
    Tuesday, June 10 
    CHATHAM, Mass. - (INVITED) Federal Reserve Chairman Ben 
Bernanke gives dinner speech before the Federal Reserve Bank of 
Boston "Understanding Inflation and the Implications for 
Monetary Policy: A Phillips Curve Retrospective" conference,  
1800 EDT/2200 GMT. Other details TBA. Wequassett Inn, Pleasant 
Bay Road. Contact: Tom Lavelle, 617 973 3647 or 
Thomas.L.Lavelle@bos.frb.org; or Donna Dulski, 617 973-3029 or 
Donna.Dulski@bosfrb.org; hotel 800 225 7125. Information: 
http://www.bos.frb.org/phillips2008 
 
---------------------------------------------------------- 
    OTHER FED OFFICIALS 
 
    Monday, May 12 
    PALATINE, Ill. - Federal Reserve Bank of Chicago President 
Charles Evans speaks on the economic outlook before the Harper 
College Economic Forum, 0815 CDT/0915 EDT/1315 GMT. Audience 
and media Q&As expected. Harper College, Wojcik Conference 
Center, 1200 W. Algonquin Road. RSVP: Maria Coons, 847 925 
6143 
    
    Tuesday-Wednesday, May 13-14 
    SEA ISLAND, Ga. - Federal Reserve Bank of Atlanta 
"Financial Market Reforms: Taking Stock" 2008 Financial Markets 
Conference. The Cloister, 100 Cloister Drive. Contacts: Pierce 
Nelson, 404 498 8748 or pierce.nelson@atl.frb.org; or Jean 
Tate, 404 498 8035 or jean.tate@atl.frb.org