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Reuters Canada Business Summary

10/10/07

Chrysler, UAW talks go past contract expiration

DETROIT (Reuters) - Chrysler and the United Auto Workers union continued labor negotiations into Wednesday despite the expiration of the extension of their current contract, a source close to the talks told Reuters. In a letter to UAW local officials, union President Ron Gettelfinger said the indefinite contract extension with the company would end at 11:59 p.m. Tuesday, and Chrysler workers would go on strike unless the "basis for a tentative agreement" was reached by 11 a.m. on Wednesday.

Yellow Pages says in pact with Google

NEW YORK (Reuters) - The Yellow Pages Group , Canada's largest phone book publisher, said on Tuesday said it had a deal with Google Inc. to market its customer advertisements on-line through Google AdWords. AdWords will allow Yellow Pages customers to be associated with certain keywords so that their adverts will appear beside search results for Google and Google Maps Internet searches.

Daimler open to cooperation but silent on Fiat report

FRANKFURT (Reuters) - Daimler AG is ready in principle to work with other carmakers on projects of mutual interest, a spokesman said on Wednesday, but he declined comment on a report it could develop compact cars with Fiat . Speculation has swirled for weeks that Daimler could seek a partner to work on the next generation of Mercedes-Benz A-Class and B-Class compact cars, whose importance is being highlighted by the debate on cars' contribution to global warming.

Second Life, IBM in open borders for virtual worlds

SAN FRANCISCO (Reuters) - IBM and Linden Labs, the operator of the Second Life virtual world, said on Tuesday they will work on ways to eventually let people use the a single online persona in different online services. Interoperability is emerging as a key goal of the nascent virtual world industry, which attracting hundreds of millions of dollars in investment on the hopes that video-game graphics and rich 3-D environments will supplant flat Web pages.

Cadbury to demerge North American soft drinks unit

LONDON (Reuters) - The world's largest confectionery group Cadbury Schweppes Plc on Wednesday said it will focus on demerging its North American soft drinks unit rather than selling it off. The London-based company, maker of Dairy Milk chocolate, Trident gum and Halls cough drops, added in a trading statement that it had seen very strong third-quarter confectionery revenue growth of 10 percent.

New chief renews World Bank focus

WASHINGTON (Reuters) - In his first 100 days as head of the World Bank, Robert Zoellick has worked quickly to give the poverty-fighting institution a sense of direction after the storm surrounding his predecessor Paul Wolfowitz. Zoellick marks his first 100 days at the World Bank on Wednesday with a policy speech in which he will outline a strategic direction for the institution that would position it to better deal with challenges in the developing world caused by globalization.

Economists cut 2008 forecasts for U.S. growth

WASHINGTON (Reuters) - U.S. economists have chopped their forecasts for 2008 economic growth for a third straight month, saying the housing slump will be deeper and last longer than earlier expected, a survey released on Wednesday showed. The consensus of economists surveyed by the Blue Chip Economic Indicators newsletter sees the U.S. economy expanding 2.4 percent in 2008. That's down from a 2.6 percent projection made last month and a 2.8 percent gain forecast in August.

Alcoa's third-quarter profit rises

NEW YORK (Reuters) - Aluminum producer Alcoa Inc on Tuesday posted a 3 percent rise in third-quarter earnings, as a gain on the sale of its stake in a Chinese aluminum company offset weaker aluminum prices. Alcoa also raised its share buyback program -- from 10 percent to 25 percent of outstanding shares, or about 217 million shares. At the current share price, that is worth more than $6.7 billion.

Canadian Natural may rethink oil projects

CALGARY, Alberta (Reuters) - Canadian Natural Resources Ltd may shelve C$7 billion ($7.1 billion) of heavy oil and oil sands projects if Alberta charges higher royalties and taxes as recommended by a review panel, it said Tuesday. But Canada's No. 2 independent producer said it could be open to some increases when oil and gas prices surge, allowing for what the company considers a healthy rate of return.

Cognos does not rule out a sale of company

BOSTON (Reuters) - Software maker Cognos Inc has not ruled out a sale of the company, an executive told Reuters on Tuesday, after Germany's SAP said it planned to buy another rival. SAP said on Sunday it would buy Business Objects for 4.8 billion euros ($6.8 billion), sparking speculation in the market that Cognos could become an acquisition target.

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