CA-BUSINESS Summary

Gold stocks lift TSX to 19-month high; financials slip

TORONTO (Reuters) - Canada's main stock index closed up on Tuesday and hit a 19-month high earlier in the day as gold shares made strong gains on the highest bullion price in nearly two weeks, helping offset worries about the European economy and weakness in financials. The price of gold climbed more than 1 percent after a top European Central Bank official said the euro zone crisis was not over, which enhanced gold's safe-haven attraction.

Analysis: Experts see risks from Canada's fixation on balanced budget

OTTAWA (Reuters) - The government's steely determination to balance Canada's budget by 2015 could brake an economy that is already showing signs of strain, as Ottawa seeks to rebuild a reputation for prudence that made it the envy of the industrialized world. The 2013-14 federal budget, due later this month, is set to reinforce the government's message that the deficit will be eliminated by 2015, an election year, and it will include what Finance Minister Jim Flaherty called "more sacrifices" from various ministries in the form of spending cuts.

Air Canada wins extension on cap on special pension payments

OTTAWA (Reuters) - Air Canada won a seven-year extension on Tuesday of the cap on special payments to erase its sizeable pension fund deficit, but will have to make higher payments than it originally requested and abide by certain conditions. Finance Minister Jim Flaherty said the airline, which had sought to limit its special payments to C$150 million ($145.6 million) a year for 10 years, will have to pay a total of C$1.4 billion over seven years, or an average of C$200 million a year, with a minimum of C$150 million a year.

MetroPCS defends T-Mobile USA deal, FCC approves it

NEW YORK (Reuters) - MetroPCS Communications Inc fought back against shareholder criticism of its proposed merger with T-Mobile USA on Tuesday, the same day that the U.S. Federal Communications Commission approved the deal. A shareholder vote on April 12 on the merger is one of the last remaining obstacles to the deal. While analysts had widely expected regulatory approval for the deal the outcome from the shareholder meeting has been more difficult to predict.

Alamos CEO says likely to drop Aurizon bid if it loses regulatory ruling

(Reuters) - Alamos Gold Inc said it was likely to walk away from a bid to buy Aurizon Mines Ltd if it loses a regulatory ruling on the merits of a poison pill adopted by Aurizon and the break fee committed to rival bidder Hecla Mining Co . "We are not willing to pay a break fee to Hecla that essentially makes the transaction more expensive for us than it does for Hecla," Alamos CEO John McCluskey told Reuters.

Credit Suisse reverses cautious stand on equities

NEW YORK (Reuters) - One month after turning cautious on global stock investing, the investment committee of Credit Suisse Group's U.S. private bank has reversed course. "Plentiful liquidity, attractive valuations and low inflation make equities among our best options in an asset allocation context," a team led by Barbara Reinhard, the unit's chief investment strategist, wrote in a note to clients.

Chesapeake noteholders, BNY Mellon escalate bond battle

(Reuters) - Chesapeake Energy Corp is facing a showdown with investors and a bond trustee over its plan to redeem $1.3 billion of notes early. The natural gas company, which faces a projected $3 billion cash shortfall this year, is hoping to avoid an extra $400 million of payments on the notes, which carry a 6.775 percent interest rate and mature in 2019.

Chevron projects on target for 25 percent growth by 2017

NEW YORK (Reuters) - Chevron Corp , the second-largest U.S. oil company, said on Tuesday it had already started nearly all the projects that would deliver 25 percent growth in oil and gas output over the next half a decade. At its annual New York meeting with analysts, Chevron said 98 percent of its targeted production by 2017 was already in design, construction or production.

Alberta regulator plans massive fee boost for well reclamation

CALGARY, Alberta (Reuters) - Industry fees for an oil-well reclamation program in Alberta, the biggest oil exporter to the United States in the world, will rise more than 20-fold, the Canadian province's energy regulator said on Tuesday after undertaking the first review of the program in seven years. The Energy Conservation Review Board said it will require 248 companies to post financial deposits totaling of C$297 million ($290 million) to ensure that the costs of well abandonment and reclamation are covered by the oil industry.

Euro woes not over, says crisis-wary Bundesbank

FRANKFURT (Reuters) - A wary German central bank said on Tuesday it had set aside billions more euros against what it deems risky European Central Bank moves, and criticized France directly for "floundering" in its reform drives. Presenting Bundesbank 2012 results, Jens Weidmann, the bank's chief, said the euro zone crisis, which has eased as a result of ECB funding promises, was not over. He urged governments to tackle the roots of their troubles with reforms.