News Column

PREP-Business Report

February 14, 2014



Rising mining stocks helped push the Toronto stock market to a three year high as traders digested a generally positive bag of economic indicators.

The S&P/TSX composite index closed up 53 points at 14,055.

The Canadian dollar was down 5-100ths at 91.05 cents U-S as manufacturing shipments declined 0.9 per cent in December, the first month that has happened since August.

Another report showed that harsh winter weather led to U-S factory output falling by 0.8 per cent in January.

But New York indexes turned higher after the latest reading on U-S consumer confidence, the University of Michigan's index, was unchanged during this month. A slight drop had been expected.

The Dow Jones industrials jumped 127 points to 16,154.

The Nasdaq was three points higher at 4,244.

Elsewhere, China's consumer prices rose 2.5 per cent over a year earlier in January, unchanged from December.

Traders found the inflation data encouraging because it leaves the Chinese government room to stimulate the world's second-biggest economy.

Other data showed that economic growth across the eurozone was stronger than expected during the fourth quarter of last year.

(CPPIB-Rslts)

The chief executive of the Canada Pension Plan Investment Board says long-term investments in countries with high-growth, emerging economies will help the board through unpredictable times.

Mark Wiseman says the board believes that the economic growth of countries such as China, India and Brazil will exceed the growth of developed markets like North America, Europe and Japan.

The Canada Pension Plan Investment Board had 201.5-billion dollars of assets under management at the end of December, up from 193-billion at the end of September.

It earned a 5.9 per cent return during the quarter.

The board invests money not currently needed by the Canada Pension Plan to pay benefits for some 18 million current and retired contributors from most provinces. (The Canadian Press)

(US-Jos-A-Bank-Eddie-Bauer)

American menswear company Joseph A. Bank Clothiers is buying the parent company of retailer Eddie Bauer.

The cash-and-stock deal is valued at 825-million dollars and will help strengthen its men's wear business and diversify its offerings. The deal comes as Joseph A. Bank is being pursued by rival Men's Wearhouse.

Eddie Bauer was founded in 1920 and sells men's and women's clothing and accessories.

Joseph A. Bank was established in 1905 and has 629 stores in the U-S.

The two brands will run independent of each other after the transaction is complete. (The Associated Press)

(Brookfield-Asset-Rslts)

Brookfield Asset Management, which has a history reaching back more than a century, says 2013 was its best financial year ever.

Brookfield invests primarily in the real estate, power generation, infrastructure and forestry sectors through a host of subsidiaries and partnerships.

It is posting 3.8-billion dollars of net income for the year, a billion more than a year ago.

Brookfield's fourth-quarter net income was 850-million dollars. (The Canadian Press)

(US-Record-Flight-Cancellations)

The relentless snow and ice storms this winter have led to the highest number of flight cancellations in the U-S in more than 25 years.

An analysis by The Associated Press news agency shows that U-S airlines have cancelled more than 75-thousand domestic flights since December 1st.

That figure includes roughly 14-thousand cancellations this week. That would amount to 5.5 per cent of the 1.35-million flights scheduled during that period.

Terrible winter weather isn't entirely to blame.

A mix of cost-cutting measures and new government regulations have made airlines more likely to cancel flights and leave travellers scrambling to get to their destination. (The Associated Press)

On the Markets:

The S&P/TSX composite index closed up 53 points at 14,055.

The Canadian dollar was down 5-100ths at 91.05 cents U-S.

The Dow Jones industrials jumped 127 points to 16,154.

The Nasdaq was three points higher at 4,244.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Canadian Press Broadcast Wire (Canada)


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