Stories Report on Business is following today :
Barrick to spin off Tanzanian assets
Barrick Gold Corp. ABX-T plans to spin off its Tanzanian gold assets in March with an initial public offering on the London exchange. Barrick, the world's biggest gold producer, said it would continue to hold a significant stake in African Barrick Gold after the IPO, which would involve selling at least 25 per cent. African Barrick Gold, the biggest producer in Tanzania, would be the biggest gold producer on the London bourse. It has four mines and several exploration projects in the country. Analyst Jonathan Guy of Investec Securities told Dow Jones Barrick's move will give the London market substantial heft in precious metals. "It's an unalloyed positive for the London market,” he said.
Barrick also today posted a fourth-quarter profit that beat analysts' estimates, earning $215-million (U.S.) or 21 cents a share, compared to a loss of $468-million or 53 cents a year earlier. "The headline and the bottom line look decent," Canaccord Financial analyst Steven Butler told Bloomberg News. Read the story.
Related: Barrick raises Chile mine stake
Consumer prices rise 1.9 per cent
Today's inflation reading by Statistics Canada is all about cars. The federal statistics gathering agency said this morning consumer prices rose 1.9 per cent in January from a year earlier, the fastest pace since November 2008. While six of the eight components in the consumer price index rose, the increase in the overall, or so-called headline, rate was driven by prices related to vehicles. Gasoline prices rose 23.9 per cent from a year earlier, while insurance premiums jumped 7.7 per cent and the purchase price of the vehicles themselves rose 3.1 per cent. That's notable in that it marks the first time since June 2007 that vehicle prices have increased on a year-over-year basis. Gas prices alone have had a dramatic regional effect as overall inflation rates are now highest in the eastern provinces.
The Bank of Canada's core inflation reading, meanwhile, which excludes volatile items and guides the central bank's policy, jumped to 2 per cent from 1.5 per cent in December. Economists don't believe that this will change Governor Mark Carney's pledge to hold interest rates at historic lows until mid-year at the earliest, although Scotia Capital noted that "for an inflation-targeting central bank, stickiness in core inflation readings have to be causing some policy angst." Read the story
Fairfax to acquire U.S. insurer
Fairfax Financial Holdings Ltd. FFH-T has struck a $1.4-billion (U.S.) cash deal to acquire Zenith National Insurance ZNT-N , a U.S. group that specializes in workers compensation. Fairfax has long been interested in Zenith, and once actually held a significant stake in the U.S. insurer, but it sold that several years ago. "This will be probably the best company we've ever bought in our history," Fairfax chief executive officer Prem Watsa said. "We've never bought a company of this quality before." Read the story
Wal-Mart profit jumps, outlook weak
Wal-Mart Stores Inc. WMT-N shares are falling after the giant retailer said fourth-quarter profit rose 22 per cent but same-store sales in the United States fell. Analysts noted that its projections for the first quarter were weak. Wal-Mart's profit rose to $4.63-billion (U.S.) or $1.21 a share from $3.79-billion or 96 cents a year earlier. Sales at stores open at least a year, a key measure, fell 1.6 per cent. "The benefit they saw last year from the 'trade-down' effect seems like it's dissipating," one analyst told Dow Jones. Read the story
New computer virus spreading
