Briefly:

(August 20, 2008) It looks like the asset-backed commercial paper saga is set to continue, as Ivanhoe Mines plans to appeal an Ontario court’s decision to allow a plan that would turn $32 billion of frozen paper to longer-term notes.

Under the plan, affected companies like Ivanhoe, which held $70.7 million in ABCP, cannot sue the corporations that were responsible for Canada’s commercial paper mess. The mining company is challenging the judge’s ruling because it wants to reinstate the ability to go after the parties in civil court.

Purdy Crawford, head of the Pan-Canadian Investors Committee that drafted the plan, had hoped the replacement notes would be issued around September 30, but that’s not going to happen.

“If people apply for appeal, we can’t count on the 30th,” Crawford told investors in a conference call today.

Canada’s leading economic indicator unchanged in July

(August 20, 2008) Most of Canada’s leading economic indicators were up in July, according to Statistics Canada, but declines in the housing and manufacturing sectors offset any gains.

The organization found that the composite leading index was unchanged for the second straight month, after small gains in April and May. The housing segment of the index declined by 2.9%, the biggest drop since June 2002. The contraction can be attributed to a decline in housing starts.

Manufacturing saw new orders rebound 1.3%, and shipments trended upwards for the first time this year, but the average workweek in manufacturing dropped 0.5%.

The composite leading index was unchanged for a second straight month in July, after small gains in April and May. Overall, two of the 10 components fell in July, versus six in June. However, the declines in housing and the average workweek in manufacturing were large enough to offset small increases in the seven components that rose.

The leading indicator in the U.S. saw a 0.1% increase, its first upward tick in 11 months. Real gross domestic product growth also rose in the second quarter, led by exports and business investment.

(08/20/08)

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.