Today's top stories from Report on Business :
Dollar flirts with parity
The Canadian dollar is flirting with parity again, coming within about one-tenth of a penny today of matching its U.S. counterpart. Economists and traders say it's only a matter of time before the loonie matches the U.S. dollar one-for-one, good news for travellers headed to the United States but adding to the stress of export-sensitive industries. The Canadian dollar has been gaining on the country's rising economic fortunes, higher prices for commodities such as oil , and what is seen as Ottawa's strong fiscal position. Markets are also betting the Bank of Canada will raise its benchmark interest rates before the Federal Reserve moves, making the currency that much more attractive. "It's really just a matter of time when the market can push it there," Scotia Capital currency strategist Camilla Sutton said as the loonie backed off just marginally from its high today of about 99.90 cents U.S. The dollar closed up more than half a cent at 99.72 cents.
Bloomberg News noted today that both the Canadian dollar and the Mexican peso are outpacing all other major currencies for the first time since at least 1998. "It's a bit like watching paint dry," Toronto-Dominion Bank chief currency strategist Shaun Osborne told the news agency, referring of how the dollar has inched its way back toward parity.
Read
As parity nears, firms rush to hedge
The 'new normal' for the loonie
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Dollar eating into your investment returns?
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Apple shares rise after iPad launch
After all the hype and lineups in the United States, how strong were sales of the iPad? Apple Inc. said today it sold more than 300,000 of the new computer tablets on its first day Saturday, which was about in line with what some analysts had projected. "It was a good number," Susquehanna Financial Group analyst Jeff Fidacaro told Bloomberg News, adding he projects sales of 850,000 in the current quarter.
Analyst Shaw Wu of Kaufman Bros. said in a research notes that he thinks the iPad will follow sales of the iPhone, which he described as getting off to slow start but then surging as it got "more refined, with more apps, better software, not to mention better prices."
The iPad is somewhat more of an unknown than the iPhone had been, given that smart phones were such a staple of the market when the iPhone launched, and the tablet market is nowhere near that.
"What you're looking at here is a brand new category," Oppenheimer & Co. analyst Yair Reiner told Bloomberg. "A lot of people in line on Saturday morning weren't sure what they were in line for." Read the story
U.S. earns billions on bank bailouts
The U.S. government didn't succeed in just keeping the banking sector afloat during the financial crisis. So far, it's turning a tidy profit on the payback. A study by consultancy SNL Financial, reported by The Financial Times and other news organizations today, says the U.S. Treasury has to date earned more than $10-billion (U.S.) on the repayment by banks of the funds they received. That's an annualized return of 8.5 per cent, SNL said. The Financial Times noted the government still expects to lose more than $115-billion on its full Troubled Asset Relief Program, or TARP, which also included money for the auto industry and AIG. Read the story
U.S. indicators better than expected
Economic indicators in the United States continue to come in better than expected. The National Association of Realtors said today that pending home sales - buyers agreeing to buy resale homes - rose 8.2 per cent in February. Economists had expected its index to dip, but it came in with a reading of 97.6, on a reading where 100 equals the level when the index was launched in 2001. Separately today, the Institute for Supply Management said its index that measures activity in the service sector also rose more than expected, jumping to 55.4 in March from February's 53. The 50 level separates expansion from contraction, and today's reading is the best in at least more than two years.
"The milestones the service sector and housing market reached reflect not only the strength of the recovery, but also the rosier prospects that lie ahead," Kathy Lien, director of currency research at GFT in New York, told Reuters
Read
U.S. pending home sales rise sharply
U.S. service sector grows faster in March
Related: U.S. economy turns a corner
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Will China stay firm on yuan?
A Chinese government economist says it's still too soon for China to alter its policy on the yuan, though he gave a nod today to weekend developments that brought the simmering dispute with the United States down a notch. On Saturday, U.S. Treasury Secretary Timothy Geithner decided to delay a mid-April decision on whether to label China a currency manipulator, though the United States still plans to push for a more flexible exchange rate policy. There was no official reaction from China today because of a public holiday. But Huo Jianguo, who heads the Chinese Commerce Ministry's think tank, told Reuters that Mr. Geithner's decision is "a positive signal" that allows for further talks. "But I don't think there will be a yuan adjustment in the near term," he told the news agency. "We need to see whether China's export recovery will be sustained and need to see whether companies can cope with a stronger yuan."
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China quiet on U.S. currency report delay
Geithner gives China room to move on yuan
U.S. wants Toyota to pay $16-million
The U.S. Transportation Department is going after Toyota Motor Corp. for more than $16-million (U.S.) for what the U.S. alleges was a failure by the Japanese auto maker to notify the government quickly about its sticky gas pedals. The evidence in the case suggests the auto maker was aware of the problem late in September, but no recall was undertaken until January, according to Transportation Secretary Ray LaHood. The penalty would be the biggest ever for an auto maker by the U.S. government. Toyota, which has two weeks to decide on whether to challenge the penalty, did not say what it will do, but pointed out it has taken steps to improve communications with regulators and customers, and has named a new North American chief quality officer. Read the story
GM to install new brake measures
General Motors Co. said today it plans to put new brake safety systems on all new vehicles by 2012, a move that would stop unintended acceleration. GM has not suffered any major issues, as has Toyota Motor Corp., but says it wants to give drivers peace of mind when it comes to the safety of its cars. U.S. regulators are studying possibly making such a system mandatory on all new vehicles. Read the story
Three-way auto tie-up expected
Daimler Ag, Renault SA and Nissan Motor Co. are expected this week to announce a partnership that would see the three alliance partners work together on small cars and trade stakes in each other, the Wall Street Journal reports today. The newspaper said in its online edition that Renault and Nissan are expected to take stakes in the German auto maker of about 3 per cent, while Daimler in turn acquires similar or slightly bigger interests in each of those companies. Carlos Ghosn, the CEO of both Nissan and Renault, and Daimler chief Dieter Setsche are expected to announce the deal this week, perhaps as early as Wednesday, the newspaper said.
New York doormen threaten strike
The doorman has a special place in the hearts of New Yorkers. They do just about everything for their charges, The Associated Press notes, including gathering laundry, babysitting and helping with groceries and other chores, along with opening doors. So it's no wonder some people are worried as the doormen, members of the Service Employees International Union, head toward what could be their first strike in almost two decades. The union representing some 30,000 doormen and other workers has set a strike deadline of April 21 in negotiations with the Realty Advisory Board. "I know them from birth," Willie Hawkins, who has worked as a doorman for 30 years, the last seven at a residential building for Wall Street professionals, told the news agency. "It's more than just a job. It's a relationship."
From today's Report on Business
Canada's pension funds perform, at a cost
Even Tiger can't lift the Masters
Quants accept no blame for financial crisis