MONTREAL , Aug. 30, 2012 /CNW Telbec/ – In celebration of the 75^th anniversary of its inaugural flight, Air Canada has launched a special
promotion offering a 15 per cent discount off Tango and Tango Plus
fares for travel this fall to 75 destinations within North America
including its entire Canada-wide network and select transborder routes
to the United States.  The discount is available on tickets purchased
Thursday August 30 to Monday September 3, 2012 at aircanada.com/happy75 and through travel agents for travel beginning as early as September 4
to December 14, 2012 .

“Seventy-five years ago on September 1st , Air Canada’s predecessor,
Trans-Canada Air Lines (TCA), inaugurated its first flight carrying two
passengers and mail between Vancouver and Seattle aboard a Lockheed
L-10A Electra,” said Calin Rovinescu, President and Chief Executive
Officer.  “Since then, Air Canada has grown to be the world’s 15^th largest airline and Canada’s flag carrier serving over 150 destinations
across Canada and world wide on five continents. Through innovation and
continuous improvement we have made it easier for Canadians to connect
with one another and the world, thereby playing a role in Canada’s
development on so many fronts.  We are very excited to mark our 75 year
history with events and initiatives all year long, and to share some of
the moments of which we are all very proud.  On behalf of Air Canada’s
27,000 employees, and the many thousands more who have served the
airline over the decades, I thank our customers for their ongoing
loyalty.”

Beginning Saturday September 1 ^st, Air Canada customers will be offered a unique glimpse into the
airline’s rich history told through stories and rarely published
photographs in a special edition of the airline’s award-winning
in-flight magazine, enRoute, available in each customer’s seatback
pocket.

Air Canada is also launching an interactive visual history of the
airline online.  Visitors to 75.aircanada.com in the coming days will have access to over 300 pictures, videos and
vignettes that tell the story of Air Canada and the evolution of
Canada’s aviation industry over the decades.

Air Canada Facebook fans will also have lots to look forward to when the
airline launches a special anniversary contest on September 1 ^st.  Watch www.facebook.com/aircanada in the coming days for details.

The Canada Aviation and Space Museum in Ottawa will provide aviation
aficionados with much to discover in person when it opens its doors
October 4, 2012 to the exhibition “People, Places and Planes: Air
Canada at 75.”  The museum’s exhibition will showcase 75 of the best
photographs from the Air Canada Collection. The photographs trace the
development of Air Canada since its early days. The Museum holds the
world’s largest collection of Air Canada material including vintage
uniforms and thousands of images and printed material, in addition to
aircraft such as the Douglas DC-9 and the Lockheed Electra.  This
collection tells the story of the growth of Canada’s aviation industry
and its contribution to our nation.  Visit www.aviation.technomuses.ca for more information on the Canada Aviation and Space Museum.

In celebration of this milestone anniversary, Air Canada launched the
Air Canada Foundation, a not-for-profit organization focused on the
health and well-being of children in need.  The Foundation recently
raised over $250,000 at its first annual fundraising event to support
organizations that share this same goal.  Visit aircanada.com/foundation for more information.

The creation of the Air Canada Foundation is one of many initiatives
highlighted in Air Canada’s first Corporate Sustainability Report
(CSR), entitled “Citizens of the World,” available online at aircanada.com/csr beginning September 1 ^st. Air Canada’s CSR examines how Air Canada conducts its business by
balancing economic, environmental and social considerations. Based on
Global Reporting Initiative (GRI) guidelines, it provides an overview
of the airline’s initiatives in four areas: safety, the environment,
employees and community.

Earlier this year, Air Canada showcased the Boeing 787 Dreamliner, the
world’s newest and most modern commercial aircraft that made its
inaugural visit to Canada on March 2 ^nd to kick off year- long celebrations to mark its 75^th anniversary.  Air Canada estimates fuel usage and maintenance costs for
a Boeing 787 aircraft to be approximately 30 per cent less than that of
the Boeing 767-300ER that it will replace. The airline has 37 firm
orders plus 13 options for the Dreamliner, with first delivery of the
aircraft in 2014.

The open house event which attracted thousands of Air Canada employees,
customers and travel partners also presented a 75-year retrospective
fashion show featuring Air Canada employees modeling more than 30
vintage uniforms from each decade of the airline’s history.  Visit Air
Canada’s YouTube channel www.youtube.com/aircanada to watch the fashion show, or click: http://www.youtube.com/watch?v=H7qdxF_wAxUfeature=plcp

About Air Canada

Air Canada is Canada’s largest domestic and international airline
serving more than 175 destinations on five continents.  Canada’s flag
carrier is the 15th largest commercial airline in the world and in 2011
served more than 33 million customers.  Air Canada provides scheduled
passenger service directly to 59 Canadian cities, 56 destinations in
the United States and 63 cities in Europe , the Middle East , Asia,
Australia , the Caribbean, Mexico and South America . Air Canada is a
founding member of Star Alliance , the world’s most comprehensive air
transportation network serving 1,356 destinations in 193 countries. 
Air Canada customers can collect Aeroplan miles for future rewards
through Canada’s leading loyalty program, and Top Tier members enjoy
reciprocal frequent flyer benefits including lounge and priority
services.

In 2012, Air Canada was ranked for a third consecutive year Best
International Airline in North America in a worldwide survey of more
than 18 million airline passengers conducted by independent research
firm Skytrax.  In 2011, readers of Global Traveler magazine voted Air Canada “Best Airline in North America ,” and readers
of Business Traveler voted Air Canada “Best North American Airline for International Travel”
and “Best In-Flight Services in North America .”  In the annual Ipsos
Reid Business Traveller Survey, Air Canada was named “Canada’s Favourite Airline for Business Travel.”  Air Canada was
preferred by 73 per cent of Canadian business travellers surveyed for
2011, the third consecutive year of improvement in Air Canada’s ratings
in the national survey. For more information on Air Canada visit aircanada.com and follow @AirCanada on Twitter and Facebook.

SOURCE: AIR CANADA

Article source: http://finance.yahoo.com/news/air-canadas-long-anniversary-celebrations-100000541.html

Thu Aug 30, 2012 1:52am IST

* CNOOC’s filing starts 45-day review process

* Government review to gauge “net benefit” to Canada

* Some gripe about restricted access to Chinese resources

By Jeffrey Jones

CALGARY, Alberta, Aug 29 (Reuters) – Despite some dissent in
Prime Minister Stephen Harper’s cabinet, the odds look favorable
for China’s state-owned CNOOC Ltd’s $15.1 billion bid
to take over Nexen Inc, the Canadian oil producer, as
Ottawa starts a formal review of the deal.

Harper, himself, has cautioned against presuming he will
rubber stamp the takeover. But he has made high-profile
overtures to China to attract the C$500 billion ($506 billion)
in investment he says the country needs over the next decade to
develop its natural resources, notably Alberta’s vast oil sands.

Industry Minister Christian Paradis said on Wednesday that
CNOOC had submitted an application for government approval of
its deal under the Investment Canada Act, kicking off a 45-day
review to determine if the takeover will result in a “net
benefit” to Canada. Paradis can unilaterally extend the somewhat
murky process for an additional 30 days.

The bid is a crucial test of the Harper Conservative
government’s assertions that Canada is open to foreign
investment, even by state-owned enterprises, as investors remain
wary that the deal could be blocked or hit with onerous terms as
was the case with BHP Billiton’s failed 2010 bid for
Potash Corp.

Some opposition to CNOOC’s bid has emerged within the Harper
cabinet, with concern raised about the potential for losing
control of the oil sands, the world’s third-largest crude
source, to Chinese state-owned companies.

However, the Globe and Mail reported on Wednesday that
Finance Minister Jim Flaherty, one of the most powerful cabinet
members, has warned colleagues that blocking the deal for
political reasons will hurt shareholder value and damage
relations with China just as Canada looks to be on the cusp of a
vast surge in oil exports.

A spokesman for Flaherty declined to comment on the report.

Sources close to the deal have told Reuters that Natural
Resources Minister Joe Oliver, who has pushed hard to open up
new markets in Asia for Canadian crude as a way to bolster
economic returns, appears to be tilting toward approval.

CNOOC announced on July 23 it will offer C$27.50 a share, a
61 percent premium to the stock’s price a day earlier, for
Nexen, which operates in the Canadian tar sands, as well as in
the Gulf of Mexico, North Sea and offshore West Africa.

Unlike Potash Corp, one of just a handful of companies that
produce its namesake fertilizer product in Canada, Nexen is
among dozens of developers in the oil sands.

But Nexen’s share price, up 2 Canadian cents at C$25.13 on
Wednesday, shows investors remain unsure about the deal getting
the nod from Ottawa.

“This will be not an easy one to turn down, in the face of
urgings from the prime minister, multiple ministers and
(Alberta’s) premier to encourage Chinese investment in Canada
and in the energy sector,” said Gordon Houlden, director of the
University of Alberta’s China Institute and a former Canadian
diplomat in China.

Still, the issue of reciprocity — with Canadian companies
being prevented from making some investments in China — has
emerged forcefully since CNOOC announced its friendly offer for
the Calgary-based oil producer, China’s richest foreign bid.

Reciprocity is not specifically part of the review process,
but the government can include it if it wants.

Paradis told reporters on Tuesday that government reviews of
takeover bids by state-owned enterprises examine the company’s
ownership and governance, what their expanded presence will mean
to the Canadian economy over the long term, and whether the
deals fit with Ottawa’s polices.

“Reciprocity is always going to be there in the background.
It’s going to be raised by critics of the deal, it’s going to be
raised by economic nationalists, it’s going to come up certainty
around a cabinet table though it’s not front and center in the
Investment Canada Act,” Houlden said

“It’s lovely in principle, but in practice, the theory that
you have to harmonize investment policies in this country with
investment policies everywhere else is somewhat unrealistic.”

CNOOC, mindful of its failed $18.5 billion bid for
California-based Unocal Corp under heavy opposition from
Washington in 2005, has promised several measures to make the
Nexen takeover palatable to Canada as the government makes its
net benefit calculations.

They include maintaining all of the current staff and
management, making Calgary the headquarters for its operations
in the Western Hemisphere, and listing its shares on the Toronto
Stock Exchange.

In its information circular mailed to shareholders last
week, Nexen said CNOOC had raised its bid twice between May and
July as talks toward a deal progressed.

Article source: http://in.reuters.com/article/2012/08/29/canada-nexen-idINL2E8JT4QT20120829

Bloomberg News

By Caroline Van Hasselt

Bank of Nova Scotia  is at it again, this time agreeing to buy ING Bank of Canada from its Dutch parent ING Groep NV for 3.126 billion Canadian dollars (US$3.159 billion) in cash. It’s the latest in a string of big purchases by the Canadian bank and its biggest-ever takeover.

The proposed transaction is also the second-largest banking deal in North America this year, behind MT Bank Corp .’s bid for Hudson City Bancorp Inc . earlier this week, according to Dealogic.

Scotiabank, Canada’s third-largest bank by assets, will add about C$40 billion in assets, C$30 billion in deposits, 1.8 million customers and more than 1,100 employees from ING Direct Canada, which operates essentially as an online-only bank in the country. The deal, subject to regulatory approval, is expected to close by this December, the bank said late Wednesday.

The bank will use ING Direct Canada’s excess capital to help fund the transaction, resulting in a net outlay of C$1.9 billion. It will also raise C$1.508 billion by issuing 29 million common shares at C$52 each.

In after-hours trading, Scotiabank shares were down 2.7% at $52.72 in New York.

Scotiabank has been on a buying spree at home and abroad since the global financial crisis, using its strong capital base and ability to access funding to take advantage of buying opportunities. ING Groep said earlier this month it might sell its U.K. and Canadian online banking activities before the planned separation of its banking and insurance businesses through a public offering in 2013.

ING Direct Canada, the country’s eighth-largest bank, has evolved into strong household name since entering Canada 15 years ago. Analysts had pointed to Scotiabank as a potential buyer given that it is one of the few major Canadian lenders that still sells mortgages through independent brokers, as does ING Direct. The company intends to rebrand ING Direct Canada within 18 months of closing, Scotia said.

The acquisition marks Scotiabank’s third major deal in Canada since the 2007-2008 crisis. It made two smaller ones earlier this month in Colombia and Mexico. Recently, Scotiabank, which is in more than 50 countries, also deepened its presence in China and Thailand.

Scotiabank previously acquired online trader E*Trade Canada for C$444 million and the rest of mutual fund giant DundeeWealth Inc. it didn’t already own, for C$2.3 billion, both of which were sold in the aftermath of the U.S. subprime credit crisis.

Article source: http://blogs.wsj.com/canadarealtime/2012/08/29/scotia-moves-again-snapping-up-ing-canada/

Thu Aug 30, 2012 2:42am IST

Article source: http://in.reuters.com/article/2012/08/29/markets-canada-stocks-idINL2E8JTGRM20120829

/NOT FOR RELEASE OR DISSEMINATION IN THE UNITED STATES /

• Preserves ING Bank of Canada’s (ING DIRECT) unique and successful model
  that offers specific value for self-directed customers as a distinct,
  wholly-owned subsidiary
• Provides continuity for more than 1,100 employees and 1.8 million
  customers backed by Scotiabank, a strong, stable Canadian shareholder
• ING DIRECT customers will have the same experience online, through the
  award-winning contact centres, and on their mobile devices, using the
  same account numbers and passwords, served by the same familiar team
• Purchase price of $3.1 billion in cash which is expected to result in a
  net investment by Scotiabank of approximately $1.9 billion after
  deducting the current excess capital at ING DIRECT
• Adds $30 billion in retail deposits to Scotiabank’s balance sheet
• Expected to close by December 2012
• Accretive to Scotiabank earnings in first 12 months

Peter Aceto, President and CEO of ING DIRECT, left, and Anatol von Hahn, Group Head of Canadian Banking at Scotiabank …

TORONTO , Aug. 29, 2012 /CNW/ – Scotiabank announced today that it has
reached a definitive agreement to purchase ING Bank of Canada (ING
DIRECT) from Netherlands-based parent ING Group for $3.126 billion in
cash, which is expected to result in a net investment by Scotiabank of
approximately $1.9 billion after deducting the excess capital currently
at ING DIRECT.  This acquisition is subject to regulatory approvals. 
The Bank is also announcing a public offering of 29 million common
shares at $52 on a bought deal basis for gross proceeds of
$1,508,000,000 to fund the acquisition.

“ING DIRECT has had proven success in meeting the needs of those
Canadians who are not looking for the added services, advice and
relationships provided by traditional banking channels. We recognize
that success and are committed to keeping this unique platform,” said
Rick Waugh , President and CEO of Scotiabank.  “ING DIRECT will benefit
from the backing of a strong, stable Canadian shareholder with the
additional resources to enable it to expand and grow. This in turn will
provide our shareholders with a new source of incremental earnings
beginning in year one, and a new deposit base to further diversify our
funding.”

With approximately $40 billion in assets, $30 billion in deposits, 1.8
million customers, and over 1,100 employees, ING DIRECT is the 8^th largest bank in Canada.  It is a direct bank that serves customers
online, via contact centres and mobile devices, offering savings,
chequing, mortgages and four mutual funds. It has five ING DIRECT Cafés
and no physical branches.  ING DIRECT has a strong mortgage portfolio
with 59% of mortgages insured and an average loan-to-value ratio on
uninsured mortgages of 53%. Credit quality is high with provisions for
credit losses below 0.02%.

“Scotiabank is committed to preserving what ING DIRECT’s customers have
come to love about it,” said Anatol von Hahn, Group Head of Canadian
Banking at Scotiabank.  “ING DIRECT will continue to operate separately
and customers will be able to interact the way they do now using their
existing account numbers and passwords, served by the same familiar
team.”

“Scotiabank is a strong, Canadian-based and diverse multinational bank
that values the impact ING DIRECT has had on the lives of Canadians
over the past 15 years,” said Peter Aceto , President and CEO of ING
DIRECT.  “With their backing and commitment to maintaining what has
made ING DIRECT special, I have great optimism for the future for our
fantastic employees and our loyal customers.”

Additional details of the acquisition:
Subject to regulatory approvals and closing conditions, this transaction
is expected to close by December 2012 .

The ING DIRECT branding will be maintained under licence and any future
branding will reflect the type of experience that customers receive
now.

On closing of the transaction, Scotiabank will also fund the redemption
of $320.5 million of subordinated debt issued by ING DIRECT.

Given our third quarter capital position, our internal capital
generation and today’s equity offering, Scotiabank expects to remain
well within our targeted range for our Basel III common equity tier 1
ratio of 7 to 7.5% through Q1 2013.

Additional details on the financing:
Scotiabank has agreed to sell the common shares to a syndicate of
underwriters led by Scotia Capital Inc. on a bought deal basis.
Scotiabank has granted to the underwriters an option to purchase up to
an additional 4,350,000 common shares, which option is exercisable, in
whole or in part, by the underwriters any time up to 5:00 p.m. ( Toronto
time) on a date that is 30 days after the closing date. The maximum
gross proceeds raised under the offering will be $1,734,200,000 should
this option be exercised in full.

Closing of the financing is expected to occur on or after September 7,
2012 . The net proceeds will be used by Scotiabank to fund the
acquisition of ING DIRECT.

The common shares will be issued in Canada by way of a prospectus
supplement that will be filed with the securities regulatory
authorities in Canada under Scotiabank’s June 8, 2012 base shelf
prospectus.

The common shares to be offered have not been and will not be registered
under the United States Securities Act of 1933, as amended, or under
any state securities laws, and may not be offered, sold, directly or
indirectly, or delivered within the United States of America and its
territories and possessions or to, or for the account or benefit of,
United States persons except in certain transactions exempt from the
registration requirements of such Act. This release does not constitute
an offer to sell or a solicitation to buy such securities in the United
States or in any other jurisdiction where such offer is unlawful.

Analyst conference call:

• A conference call to discuss the transaction will take place on August
  29, 2012 at 4:30 EDT and is expected to last approximately 30 minutes.
  Interested parties are invited to access the call live:
• Via telephone, in listen-only mode, by calling 416-644-3415 or
  1-877-974-0445 ( North America toll free). Please call five to 15
  minutes in advance.
• Slides will be available on the Investor Relations Page of www.scotiabank.com
• Following a discussion of the acquisition by Scotiabank and ING DIRECT
  Executives, there will be a question and answer session.

Conference call archive:

• A telephone replay of the call will be available between August 30, 2012
  and September 13, 2012 by calling 416-640-1917 or 1-877-289-8525 ( North
  America toll free). The access code is  4562480#

Scotiabank is one of North America’s premier financial institutions and
Canada’s most international bank. With more than 81,000 employees,
Scotiabank and its affiliates serve some 19 million customers in more
than 55 countries around the world. Scotiabank offers a broad range of
products and services including personal, commercial, corporate and
investment banking. With assets of $670 billion (as at July 31 , 2012),
Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS).
For more information please visit www.scotiabank.com.

Caution regarding forward looking information:
Our public communications often include oral or written forward-looking
statements. Statements of this type are included in this document, and
may be included in other filings with Canadian securities regulators or
the United States Securities and Exchange Commission, or in other
communications. All such statements are made pursuant to the “safe
harbour” provisions of the United States Private Securities Litigation
Reform Act of 1995 and any applicable Canadian securities legislation.
Forward-looking statements may include comments with respect to the
Bank’s proposed acquisition of ING DIRECT, the Bank’s funding plans and
the impact of the acquisition on the Bank’s earnings and capital
ratios. Such statements are typically identified by words or phrases
such as “believe”, “expect”, “anticipate”, “intent”, “estimate”,
“plan”, “may increase”, “may fluctuate”, and similar expressions of
future or conditional verbs, such as “will”, “should”, “would” and
“could”.

By their very nature, forward-looking statements involve numerous
assumptions, inherent risks and uncertainties, both general and
specific, and the risk that predictions and other forward-looking
statements will not prove to be accurate. Do not unduly rely on
forward-looking statements, as a number of important factors, many of
which are beyond our control, could cause actual results to differ
materially from the estimates and intentions expressed in such
forward-looking statements. These factors include, but are not limited
to: the economic and financial conditions in Canada and globally;
fluctuations in interest rates and currency values; liquidity;
significant market volatility and interruptions; the failure of third
parties to comply with their obligations to us and our affiliates; the
effect of changes in monetary policy; legislative and regulatory
developments in Canada and elsewhere, including changes in tax laws;
the effect of changes to our credit ratings; amendments to, and
interpretations of, risk-based capital guidelines and reporting
instructions and liquidity regulatory guidance; operational and
reputational risks; the risk that the Bank’s risk management models may
not take into account all relevant factors; the accuracy and
completeness of information the Bank receives on customers and
counterparties; the timely development and introduction of new products
and services in receptive markets; the Bank’s ability to expand
existing distribution channels and to develop and realize revenues from
new distribution channels; the Bank’s ability to complete and integrate
acquisitions and its other growth strategies; changes in accounting
policies and methods the Bank uses to report its financial condition
and financial performance, including uncertainties associated with
critical accounting assumptions and estimates; the effect of applying
future accounting changes; global capital markets activity; the Bank’s
ability to attract and retain key executives; reliance on third parties
to provide components of the Bank’s business infrastructure; unexpected
changes in consumer spending and saving habits; technological
developments; fraud by internal or external parties, including the use
of new technologies in unprecedented ways to defraud the Bank or its
customers; consolidation in the Canadian financial services sector;
competition, both from new entrants and established competitors;
judicial and regulatory proceedings; acts of God, such as earthquakes
and hurricanes; the possible impact of international conflicts and
other developments, including terrorist acts and war on terrorism; the
effects of disease or illness on local, national or international
economies; disruptions to public infrastructure, including
transportation, communication, power and water; and the Bank’s
anticipation of and success in managing the risks implied by the
foregoing. A substantial amount of the Bank’s business involves making
loans or otherwise committing resources to specific companies,
industries or countries. Unforeseen events affecting such borrowers,
industries or countries could have a material adverse effect on the
Bank’s financial results, businesses, financial condition or liquidity.
These and other factors may cause the Bank’s actual performance to
differ materially from that contemplated by forward-looking statements.
For more information, see the discussion starting on page 63 of the
Bank’s 2011 Annual Report.

The preceding list of important factors is not exhaustive. When relying
on forward-looking statements to make decisions with respect to the
Bank and its securities, investors and others should carefully consider
the preceding factors, other uncertainties and potential events. The
Bank does not undertake to update any forward-looking statements,
whether written or oral, that may be made from time to time by or on
its behalf.

Additional information relating to the Bank, including the Bank’s Annual
Information Form, can be located on the SEDAR website at www.sedar.com and on the EDGAR section of the SEC’s website at www.sec.gov.

Image with caption: “Peter Aceto, President and CEO of ING DIRECT, left, and Anatol von Hahn, Group Head of Canadian Banking at Scotiabank shake hands to mark the announcement of Scotiabanks purchase of ING Bank of Canada. (CNW Group/Scotiabank)”. Image available at: http://photos.newswire.ca/images/download/20120829_C2539_PHOTO_EN_17369.jpg

SOURCE: Scotiabank

Article source: http://finance.yahoo.com/news/scotiabank-reaches-agreement-acquire-ing-201800035.html

Canada’s dollar advanced against the
majority of its 16 most-traded counterparts after the economy of
the U.S., its largest trading partner, grew more than originally
forecast in the second quarter.

The Canadian currency traded at almost a four-month high
against the U.S. currency as riskier assets advanced after
German Chancellor Angela Merkel said she’s convinced that
Italy’s “reforms” will help reduce the interest rates that the
nation pays for its bonds. Canada’s dollar was also supported as
the Federal Reserve said the U.S. economy continued to expand
“gradually” in July.

The growth in U.S. gross domestic product “reinforces the
view that Canada is likely to be the main beneficiary,” said
Sebastien Galy, a senior foreign-exchange strategist at Societe
Generale SA in New York. “The foreign-exchange market is
running ahead and buying the solid platinum loonie.”

Canada’s currency fell 0.1 percent to 98.94 cents per U.S.
dollar at 5 p.m. in Toronto. Earlier it gained as much as 0.2
percent after touching 98.43 cents yesterday, equal to the
strongest since May 3. One Canadian dollar buys $1.01071.

Gains in the currency were limited as crude-oil futures
fell. Oil decreased 1.2 percent to $95.18 per barrel in New
York, as Hurricane Isaac made landfall in the U.S. and Group of
Seven nations said prices may threaten the global economic
recovery.

Debt Auction

The Bank of Canada auctioned C$2.9 billion of three-year
bonds at a 1.278 percent average yield with a bid-to-cover ratio
of 2.73. The previous auction of similar-maturity bonds on June
13 drew an average yield of 1.153 percent and a coverage ratio
of 2.47 times, compared with an average over the past five
three-year auctions of 2.46 times.

Yields on Canada’s two-year benchmark bond fell two basis
points, or 0.02 percentage point, to 1.14 percent. The 2.25
percent security rose 3 cent to C$102.09.

The Fed said in its Beige Book business survey based on
reports from its 12 districts that improvement in housing and
retail sales helped outweigh weakness in manufacturing.

U.S. GDP climbed at a 1.7 percent annual rate from April
through June, up from an initial estimate of 1.5 percent,
revised Commerce Department figures showed in Washington,
reflecting an improvement in the trade deficit and a pickup in
household spending on utilities. The revised data showed
companies invested in new equipment at the slowest pace in
almost three years.

Canadian home-resale prices rose 4.8 percent in July from a
year earlier, according to the Teranet-National Bank Composite
House Price Index.

To contact the reporter on this story:
Allison Bennett in New York at
abennett23@bloomberg.net

To contact the editor responsible for this story:
Dave Liedtka at
dliedtka@bloomberg.net

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Article source: http://www.bloomberg.com/news/2012-08-29/canada-dollar-appreciates-as-u-s-economic-growth-beats-forecast.html

TORONTO (Reuters) – Canada’s No. 3 lender Bank of Nova Scotia agreed to buy ING Groep’s Canadian online bank for C$3.1 billion ($3.14 billion), taking advantage of a rare opportunity to grab market share in the country’s crowded retail banking space.

The online bank, branded as ING Direct Canada, will bring 1.8 million customers, C$40 billion in assets and C$30 billion in deposits under the wing of the bank commonly known as Scotiabank.

Amsterdam-based ING put the unit up for sale earlier this month as part of a series of planned asset divestments to raise funds to repay a Dutch government bailout from the 2008 financial crisis.

Scotiabank will pay cash for the Canadian unit and said it will issue 29 million shares at C$52 each for total proceeds of C$1.5 billion to help fund the deal.

After deducting excess capital levels currently at ING Direct, Scotiabank’s actual net cost will be C$1.9 billion, it said, adding that the takeover will be accretive to Scotiabank’s earnings in the first year after closing, which is expected by the end of the year.

It also said its Basel III common equity tier 1 ratio will remain within its targeted range of 7 to 7.5 percent through the first quarter of 2013, meeting new standards that begin to take effect next year.

“SAVE YOUR MONEY”

Earlier this month, the Dutch bank said it expected a quick sale of parts of its $7 billion Asian insurance business, and it is also preparing to list its European and U.S. insurance units on stock markets as part of its restructuring.

Started in 1997, ING Direct Canada is an online bank which offers cheap loans and high-interest savings accounts.

Touted by familiar ads where Dutch actor Frederik De Groot encourages Canadians to “save your money”, it currently holds about 3 percent of the Canadian market and commands strong brand loyalty among customers who prefer to avoid the traditional larger banks.

In a nod to these customers and the need to retain them, Scotiabank said it will maintain the unit’s current product offering and keep the ING name for 18 months after the deal closes before rebranding it.

“We intend to keep this model following the acquisition and preserve ING Direct as a standalone business and a standalone brand,” Scotiabank Chief Executive Rick Waught said on a conference call.

Current management, including ING Direct CEO Peter Aceto, will also maintain their positions, the bank said.

Scotiabank said it would eventually expand ING Direct’s product suite, which currently includes chequing accounts, mortgages, and basic mutual funds, to include higher-yielding products such as credit cards.

GROWTH OPPORTUNITY

Canada’s banking industry is dominated by six domestic lenders, who are not permitted to merge with each other, which makes domestic growth opportunities few and far between, and has forced them to look to international markets for growth.

While the domestic bank industry has been hurt by slowing loan growth and narrow interest margins, it still churns out steady profits for the banks, underpinned by Canada’s relatively strong economy and a housing market that continues to chug along, despite fears of a pullback.

Edward Jones analyst Tom Lewandowski said picking up deposits that can then be lent out at higher rates was key, particularly in the current low interest rate environment.

“I would look at it as a positive for Bank of Nova Scotia for that fact alone,” he said.

A source close to the deal said Canada’s six biggest banks were all in discussions to buy the ING unit.

The deal was announced after markets closed, but Scotiabank’s U.S.-listed shares fell 2.7 percent to C$52.72 in after-markets U.S. trading.

J.P. Morgan advised ING on the sale.

($1 = 0.9885 Canadian dollars)

(Reporting By Cameron French; editing by Andrew Hay)

Article source: http://news.yahoo.com/scotiabank-buys-ing-bank-canada-assets-c-3-202421435--finance.html

TORONTO — Canadian home prices rose in July from June to hit a record high for a third consecutive month, but the slower pace of gains and falling prices in Vancouver added to recent evidence the market is cooling.

The Teranet-National Bank Composite House Price Index released on Wednesday showed overall prices climbed 0.7 per cent in July from the previous month.

The index, which measures price changes for repeat sales of single-family homes, was up 4.8 per cent from a year earlier. It does not provide actual prices.

While home-resale price gains continued to outpace inflation, July was the eighth straight month in which the annual price gain decelerated.

A long run-up in Canadian house prices and low supply in some markets has sparked concern that a housing bubble is forming. The federal government has tightened mortgage lending rules four times in four years to try to prevent borrowers from taking on too much debt to buy into the market.

“Despite the string of fairly robust month-over-month gains, we do not expect this trend to continue especially as the impact of tighter mortgage regulations weigh on housing market activity over the balance of the year,” Mazen Issa, Canada macro strategist at TD Securities, said in a research note.

Separately on Wednesday, Canada’s government housing agency said it is not concerned that a housing bubble is forming, declaring in a second-quarter report that the market is supported by demographic and economic fundamentals.

In its report, Teranet noted further deceleration in prices is likely.

“Since prices rose 1.0 per cent from July to August last year, further deceleration is possible in August 2012,” it said.

The 0.7 per cent monthly gain in July was the fifth rise in a row and was led by a 2.0 per cent rise in prices in Hamilton, Quebec City and Victoria, and a 1.6 per cent increase in Toronto. Vancouver prices dropped 0.5 per cent, the first decline there in five months.

Issa said Toronto’s hot housing market is helping to hold up the national average even as other cities see smaller price gains and Vancouver records a sharp slowing.

“Excluding (Toronto) would show a more pronounced decelerating trend in prices. Other cities are in a stable to declining trend in nominal house price appreciation,” Issa said.

“In Vancouver, year-over-year (increases in) prices are decelerating at a fairly rapid pace and currently stand at 1.6 per cent — well below the 2011 peak of 10.4 per cent registered in the month of September. “

Year-over-year data showed prices were up 9.2 per cent in July in Toronto.

Six other markets lagged the national month-on-month increase. Prices rose 0.6 per cent in Ottawa-Gatineau, 0.4 per cent in Edmonton and Montreal, 0.3 per cent in Winnipeg, 0.2 per cent in Calgary and 0.1 per cent in Halifax.

Halifax has had the longest run of monthly increases, with nine, followed closely by Toronto and Montreal with eight months each of rising prices.

Article source: http://www.thestar.com/business/article/1248589--canada-s-home-price-rise-continues-to-slow-in-july

The following is the text of the
industrial product and raw material prices report as reported
by Statistics Canada.

The Industrial Product Price Index (IPPI) was down 0.5% in
July compared with June. The decline was mainly attributable to
chemical products and motor vehicles and other transportation
equipment.

The Raw Materials Price Index (RMPI) rose 0.9%, largely
because of higher prices for mineral fuels and vegetable
products.

Industrial Product Price Index, monthly change

The IPPI posted a third consecutive decrease in July,
following declines of 0.3% in June and 0.2% in May. Of the 21
major commodity groups, 3 were up while 14 were down.

Chemical products made the largest contribution to the
decline in the IPPI, mostly as a result of lower prices for
industrial chemical products (-2.5%) and fertilizers (-13.5%).
The decrease in fertilizers was led by urea.

The motor vehicles and other transportation equipment group
was pushed down by motor vehicles (-1.3%). The increase in the
value of the Canadian dollar against the US dollar in July was
partly responsible for the decline.

Some Canadian producers who export their products are
generally paid on the basis of prices set in US dollars.
Consequently, the 1.4% increase in the value of the Canadian
dollar relative to the US dollar in July had the effect of
reducing the corresponding prices in Canadian dollars. Without
the impact of the exchange rate, the IPPI would have fallen 0.2%
instead of 0.5%.

Downward pressure on the IPPI also came from primary metal
products, especially other non-ferrous metal products, aluminum
products and nickel products. In the other non-ferrous metal
products group, gold and gold alloys in primary forms and silver
and platinum were down.

Conversely, the group with the largest increase in July was
fruit, vegetable, feeds and other food products, specifically
feeds.

In July, petroleum and coal products had a negligible
impact on the IPPI.

Industrial Product Price Index, 12-month change

Compared with July 2011, the IPPI edged up 0.3%. Therefore,
the index continued its year-over-year advance, though the
growth rate has slowed in recent months.

The main contributor to the increase in the IPPI was the
motor vehicles and other transportation equipment group,
specifically motor vehicles (+5.6%). This commodity group has
not experienced a year-over-year decline since September 2011.

The 5.8% year-over-year decline in the value of the
Canadian dollar against the US dollar contributed to the index’s
advance. Without the impact of the exchange rate, the IPPI would
have fallen 1.2% instead of increasing 0.3%.

Relative to July 2011, the growth in the IPPI was moderated
mainly by primary metal products, especially other non-ferrous
metal products, aluminum products and nickel products.

Petroleum and coal products (-3.7%) were also down compared
with July 2011. The IPPI excluding petroleum and coal products
was up 0.8% during the same period.

Raw Materials Price Index, monthly change

The RMPI rose 0.9% in July, which marks a change in the
trend observed over the last five months. Of the seven major
commodity groups, three were down.

The increase in the RMPI was mainly a result of mineral
fuels (+1.1%), specifically crude oil (+1.2%) as well as
vegetable products (+5.1%). The RMPI excluding mineral fuels was
up 0.8% in July.

Vegetable products were driven upward primarily by grains,
particularly corn and wheat, which posted substantial increases
in July. These price increases can be attributed partly to
reduced supply in North America, where drought conditions
disrupted normal production.

The advance in the RMPI was moderated by lower prices for
non-ferrous metals, pushed downward mainly by precious metals,
particularly gold and alloys in primary form and silver and
platinum.

Raw Materials Price Index, 12-month change

Compared with July 2011, the RMPI fell 10.0%. This was the
fifth consecutive year-over-year decline.

Downward pressure on the index was exerted mainly by
mineral fuels, specifically crude oil (-17.3%). Compared with
July 2011, the RMPI excluding mineral fuels was down 3.3%.

Also contributing to the decline in the RMPI were non-
ferrous metals, particularly copper concentrates.

Animals and animal products (+4.3%) had a slight moderating
effect on the year-over-year decrease in the RMPI.

Note to readers

All data in this release are seasonally unadjusted and
usually subject to revision for a period of six months (for
example, when the July index is released, the index for the
previous January becomes final).

The Industrial Product Price Index (IPPI) reflects the
prices that producers in Canada receive as the goods leave the
plant gate. It does not reflect what the consumer pays. Unlike
the Consumer Price Index, the IPPI excludes indirect taxes and
all the costs that occur between the time a good leaves the
plant and the time the final user takes possession of it,
including transportation, wholesale and retail costs.

Canadian producers export many goods. They often indicate
their prices in foreign currencies, especially in US dollars,
which are then converted into Canadian dollars. In particular,
this is the case for motor vehicles, pulp, paper and wood
products. Therefore, a rise or fall in the value of the Canadian
dollar against its US counterpart affects the IPPI. But the
conversion into Canadian dollars only reflects how respondents
provide their prices. Moreover, this is not a measure that takes
into account the full effect of exchange rates, since that is a
more difficult analytical task.

The conversion of prices received in US dollars is based on
the average monthly exchange rate (noon spot rate) established
by the Bank of Canada and is available on CANSIM in table 176-
0064 (series v37426). Monthly and annual variations in the
exchange rate, as described in the text, are calculated
according to the indirect quotation of the exchange rate (for
example, CAN$1 = US$X).

The Raw Materials Price Index (RMPI) reflects the prices
paid by Canadian manufacturers for key raw materials. Many of
those prices are set on the world market. However, as few prices
are denominated in foreign currencies, their conversion into
Canadian dollars has only a minor effect on the calculation of
the RMPI.

To contact the reporter on this story:
Ilan Kolet in Ottawa at ikolet@bloomberg.net

To contact the editor responsible for this story:
Marco Babic at mbabic@bloomberg.net

Article source: http://www.businessweek.com/news/2012-08-29/canada-july-industrial-product-and-raw-materials-prices-text

Wed Aug 29, 2012 5:58pm IST

Aug 29 (Reuters) – Canadian stock futures pointed to a
higher open, despite caution among investors across the globe,
ahead of a key gathering of central bankers that might give
further clues on policy actions.

U.S. Federal Reserve Chairman Ben Bernanke is expected keep
markets guessing about the timing of another round of bond
purchases when he speaks on Friday in Jackson Hole, but he is
likely to sustain expectations for action of some kind next
month.

TOP STORIES

* The European Central Bank needs to employ “exceptional
measures” at times to ensure its monetary policy can be
effective but will act within its mandate to deliver price
stability, ECB President Mario Draghi said in a newspaper
opinion piece.

* Shareholders in Canada’s Progress Energy Resources Corp
have approved a takeover bid from Malaysia’s state oil
company Petronas at C$22.00 a share, or near C$6 billion ($6.09
billion) including debt, Progress said.

* Samsung Electronics Co unveils the second generation of
its popular Galaxy Note phone-cum-tablet at Europe’s biggest
electronics show in Berlin later on Wednesday, as the South
Korean firm comes under pressure to innovate after losing a U.S.
patent battle with Apple Inc.

* China’s central bank is experimenting with more delicate
tools to support bank liquidity and lending, showing an apparent
reluctance to resort to blunter monetary policy instruments such
as cutting the amount of cash banks must hold as reserves
despite abundant signs of weakening growth.

* Greece’s government has agreed on the broad framework for
nearly 12 billion euros in spending cuts for the next two years,
with only technical issues outstanding, the country’s finance
minister said on Wednesday.

MARKET SNAPSHOT

* Canada stock futures traded up 0.26 percent

* U.S. stock futures , , were down in
the range of -0.01 percent to -0.08 percent

* European shares, were down

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 306.29; fell
0.2 percent

* Gold futures : $1,665.2; fell 0.08 percent

* US crude : $95.64; fell 0.72 percent

* Brent crude : $112.12; fell 0.41 percent

* LME 3-month copper : $7,548.5; fell 0.78 percent

ANALYST RECOMMENDATIONS

Following is a summary of research actions on Canadian
companies reported by Reuters.

* Bank of Montreal : CIBC raises target to C$60 from
C$59 after the company reported third-quarter earnings and
announced unexpected bounce in dividend

* Luna Gold Corp. : National Bank Financial starts
with outperform with a target of C$3.20, says production from
Aurizona is expected to generate adjusted 2012 earnings and cash
flow of 6 and 20 cents per share respectively.

* Orezone Gold Corp. : CIBC cuts target to C$4 from
C$5 to reflect increased cost estimates

* Royal Host Inc. : CIBC cuts target to C$1 from
C$1.25 after the company reported second-quarter fund from
operations below estimates

ON THE CALENDAR

* Major Canadian economic data includes industrial prices

* Major U.S. events and data includes second estimate on
second-quarter gross domestic product, the Federal Reserve’s
Beige Book of economic conditions, pending home sales and
corporate profits

Article source: http://in.reuters.com/article/2012/08/29/markets-canada-stocks-idINL4E8JT4WB20120829