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Economy growing slowly, report says

TORONTO - The Canadian economy appears to be growing, but at a weak pace, after grinding to a halt earlier this year.

Recent economic numbers suggest things might not be as bleak as originally believed.

Statistics Canada reported Tuesday wholesale sales were up two per cent to $45.2 billion in June, the fifth increase in six months.

They were up 1.5 per cent in May and 1.6 per cent in April.

Craig Alexander, deputy chief economist at TD Bank Financial Group, called the increase significant, noting they were still up a solid one per cent even after stripping out price effects.

Economic growth looks likely to come in at about 0.8 per cent on an annualized basis in the second quarter, he added, after contracting slightly during the first quarter.

Trader fined for defrauding customers

TORONTO - Hedge fund operator Paul Eustace, an American living in Canada, has agreed to pay more than US$279 million to defrauded customers and more than US$12 million in civil penalties.

The penalties against Eustace and Philadelphia Alternative Asset Management, which he controlled, were announced Tuesday by the U.S. Commodity Futures Trading Commission.

The settlement agreement was dated Aug. 13.

The commission said Eustace incurred losses of US$200 million by trading commodity futures and options, either in accounts held in the name of the funds under his control, or in his name.

Under the settlement, Eustace agrees to waive any rights to assets frozen by the U.S. court or the Ontario Securities Commission.

Court to rule on bid to buy B.C. pulp mill

VANCOUVER - A buyer has surfaced for the Mackenzie pulp mill in B.C. that will save about 200 jobs, but the union at the mill is not celebrating yet given the complexity of the deal and an earlier bid that failed.

A court will decide as early as today on the bid from a numbered company based in Edmonton that is being recommended by receiver PricewaterhouseCoopers.

The deal is complex because the asking price, which ranges from $6.5 million to $20 million, depends on a crucial chip supply agreement with Canfor Corp., which is also before the court.

The company, which reportedly already runs pulp mills, said it will pay $20 million if the chip agreement is included, but falls to as low at $6.5 million without it.

U.S. travel down, but gas prices not to blame

CALGARY - Canada is attracting fewer visitors from the United States this year, but the usual culprit - high gasoline prices - is not the biggest reason, says the president of the Hotel Association of Canada.

Anthony Pollard said the rising loonie is largely to blame for the downturn.

The loonie, which hit US$1.10 in November, was worth around 94 cents U.S. on Tuesday.

The prospect of long border delays and confusion over whether a passport is needed to get into Canada have also dissuaded Americans from heading north.

Source: The Canadian Press