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Business News as of Noon ET(Canadian Press DataFile Via Acquire Media NewsEdge) WEDNESDAY, Aug. 31 - Noon ET BUSINESS NEWS ADVISORY Here are the top Business News stories from The Canadian Press as of Noon ET. All times are Eastern unless otherwise stated. Coverage plans are included when available. Entries are subject to change as news develops. Queries should be addressed to assistant business editor Andrew Flynn at 416-507-2016 or David Friend on the business desk at 416-507-2138. To reach CP Business by email, send messages to business(at)thecanadianpress.com. ____ TOP BUSINESS NEWS THIS HOUR ___ Economy shrinks but no recession in forecast Economy-Flaherty OTTAWA _ The Canadian economy stalled in the second quarter, contracting slightly as exports dropped amid the global economic slowdown, but economists and the federal finance minister say there's no reason yet to believe another recession is looming.Statistics Canada said Wednesday that Canadian gross domestic product shrank 0.1 per cent in the three months ended June 30, or at an annualized pace _ assuming it had contracted at that rate over a full year _ of 0.4 per cent. PHOTO. Will be updated. ___ US gov't sues to block AT&T, T-Mobile merger US-AT&T-T-Mobile WASHINGTON _ The U.S. Justice Department filed suit Wednesday to block AT&T's US$39-billion deal to buy T-Mobile USA on grounds that it would raise prices for consumers.The government contends that the acquisition of the No. 4 wireless carrier in the country by No. 2 AT&T would reduce competition and thus lead to price increases. ___ Bombardier nets US$211M in second quarter Bombardier MONTREAL _ Bombardier's net profits soared by nearly 53 per cent in the second quarter but economic uncertainty reduced aircraft order deposits and trimmed its free cash.The Montreal-based transportation giant, which reports in U.S. dollars, said earnings for the three months ended July 31 rose to US$211 million compared with $138 million in same period last year. Will be updated after 10 a.m. EDT conference call. ___ CIBC hikes dividend as profit beats forecasts CIBC TORONTO _ CIBC (TSX:CM) raised its dividend for the first time since the economic downturn as it reported Wednesday that third-quarter profits grew by 26 per cent to $808 million, soaring above analyst expectations.The bank said earnings were equivalent to $1.89 per share, compared with $640 million or $1.53 a year ago. PHOTO. ___ China's Wen says controlling inflation still goal AS-China-Economy BEIJING _ The Chinese government remains focused on reining in surging prices despite global instability and has no plans to change controls that have caused its economy to slow, said Premier Wen Jiabao in comments released Wednesday.The global slowdown has prompted suggestions Beijing might ease its controls, but Wen said in comments on the Cabinet website that the cooling in China's rapid economic growth is in line with government plans. Wen is the country's top economic official and No. 3 in the ruling Communist Party hierarchy. ___ Eurozone inflation data suggest no more rate hikes EU-EU-Economy BRUSSELS _ Inflation in the 17 euro countries remained steady at 2.5 per cent in August, adding to expectations the European Central Bank will hold off from raising interest rates _ and may even consider cutting them _ as economic growth slows.Wednesday's figure is still above the ECB's target of just below 2 per cent, but underlines that prices in the eurozone are not rising as quickly as earlier in the year. In June, inflation was 2.7 per cent. ___ Strong autos drove US July factory orders up US-Economy WASHINGTON _ U.S. factory orders rose strongly in July on the biggest jump in demand for autos in more than eight years and a surge in commercial airplane orders. The increase suggests supply chain disruptions created by the Japan crisis are easing.Factory orders climbed 2.4 per cent, the largest increase since March, the Commerce Department reported Wednesday. Orders for motor vehicles and parts rose 9.8 per cent, the largest one-month gain since January 2003. ___ ALSO IN THE NEWS ___ Stocks higher amid strong CIBC earnings Dollar-Markets TORONTO _ A strong earnings report from CIBC (TSX:CM) helped push the Toronto stock market sharply higher Wednesday while investors largely shrugged off data showing the Canadian economy hit the brakes in the second quarter.The S&P/TSX composite index gained 88.57 points to 12,723.29 while the TSX Venture Exchange added 5.12 points to 1,807.88. Will be updated. ___ Loonie lower, data shows economy stalls in Q2 Loonie TORONTO _ The Canadian dollar was higher Wednesday amid data which showed that the domestic economy ground to a halt during the second quarter.The loonie rose 0.11 of a cent to 102.34 cents US as Statistics Canada reported that gross domestic product declined by 0.1 per cent, which followed a 0.9 per cent increase in the January-March period. will be updated ___ First Uranium sells Texas database for $900K Uranium-One CORPUS CHRISTI _ First Uranium Corp. (TSX:FIU) is selling its South Texas database package to Uranium Energy Corp (AMEX:UEC) of Austin, Texas, for US$900,000 in cash and stock, the American company said Wednesday.This strategic database, with more than 40 uranium targets Uranium Energy plans to evaluate, will be paid for with US$400,000 in cash and 159,236 of the company's common shares, valued at US$3.14 apiece. ___ Timminco executive office sees more changes Timminco TORONTO _ More changes have been announced in the executive offices at silicon specialty metal producer Timminco Ltd. (TSX:TIM), including the resignation of John Fenger as president and chief operating officer to "pursue other interests."Fenger, who has agreed to act as a senior adviser to Timminco for certain projects, is being replaced as president by the company's general counsel and corporate secretary, Peter Kalins, who will also retain those roles. ___ Paladin Energy Q4 loss widens to US$47.7M Paladin-Energy PERTH _ Paladin Energy Ltd (TSX:PDN) reports fourth-quarter after-tax loss of US$47.7 million or 6.3 cents per share, compared with a loss of US$25.2 million or 3.5 cents in the same year earlier period. Revenue for the three months ended June 30 was US$60.2 million, up from US$49.89 million. ___ Quadra FNX receives anti-trust approval Quadra-FNX VANCOUVER _ Quadra FNX Mining Ltd. (TSX:QUX) and joint venture partner Sumitomo Corp. have received anti-trust approval from China's Ministry of Commerce to develop the Sierra Gorda joint venture in Chile.The approval was the final condition attached to the joint venture agreement. ___ (c) 2011 The Canadian Press |