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Reuters Canada Business Summary

18/11/07

G20 countries wrap up talks on forex and stability

KLEINMOND, South Africa (Reuters) - Finance chiefs from the G20 economic powers end two days of talks on the global economy on Sunday as a sinking U.S. dollar, a painful credit crunch and soaring oil prices threaten stability. The Group of 20 mostly industrialized and emerging economies were due to release a communique at 6:30 a.m. EST detailing resolutions, with the focus expected to be on currency imbalances and the risks to global growth from credit woes stemming from the U.S. subprime mortgage crisis.

Risks to world growth have grown: Dodge

OTTAWA (Reuters) - Risks to world economic growth have risen in the past month amid unprecedented foreign exchange volatility, Bank of Canada Governor David Dodge said on Saturday. Dodge, in a conference call, said those risks would be taken into account when setting Canadian monetary policy, raising the possibility of an interest rate cut earlier than previously expected.

Toronto stocks end flat as credit worry linger

TORONTO (Reuters) - The Toronto Stock Exchange's main index finished little changed on Friday, supported by energy shares but undermined by anxiety after Bank of Montreal said it will take charges that result partly from securities hit by the credit crunch. Most of the index's sectors were lower a day after the index fell to its lowest level in 2-1/2 months amid worries over the fallout from the credit squeeze and the health of the U.S. economy.

BHP says direct Rio bid might be future option

JOHANNESBURG (Reuters) - Mining giant BHP Billiton, whose multi-million-dollar takeover plan has been rejected by Rio Tinto's management, may consider taking an offer directly to Rio's shareholders in the future, BHP's chief said on Saturday. In the meantime, BHP Billiton is aiming to bring Rio's board to the table by asking Rio shareholders to put pressure on management, Chief Executive Marius Kloppers told a media briefing in Johannesburg.

Canadian consumer confidence higher: TNS survey

TORONTO (Reuters) - Canadian consumer confidence has risen in November, buoyed by a strong currency and rising employment, according to a study by marketing research firm TNS Canadian Facts. The survey's "present situation index" for November, which looks at Canadians' attitudes towards the overall state of the economy, rose to 122.8, its highest level in three years, from 119.8 last month.

Multiple charges to chop BMO's profit

TORONTO (Reuters) - Bank of Montreal said on Friday it would record fourth-quarter charges of more than C$500 million ($513 million) before taxes, becoming the latest in a string of financial institutions taking hits from asset-backed commercial paper and other securities hurt by the credit crunch. The bank, Canada's fifth-largest by market value, said the multiple charges plus a one-time securities gain amounted to C$260 million after tax, and would chop about 50 Canadian cents a share from earnings in the quarter.

Chrysler considers slashing number of dealers: report

NEW YORK (Reuters) - Chrysler LLC is considering massive branding changes that would further simplify its product portfolio, while helping cut as many as 1,000 dealers, The Wall Street Journal Online reported on Friday. A plan calls for Chrysler dealers to sell passenger cars under the Chrysler name, while Dodge dealers would exclusively offer pickup and commercial trucks, and Jeep dealers would sell Jeep and sport-utility vehicles, the Journal said.

Quebecor World stock plunges on refinancing plan

MONTREAL (Reuters) - Quebecor World shares tumbled 22 percent on Friday over investor concerns about a $750 million refinancing plan that would include an equity issue. The commercial printer's shares were off 85 Canadian cents at C$3.85 on the Toronto Stock Exchange and 82 cents at $3.10 on the New York Stock Exchange on Friday afternoon. Volume in Toronto topped 2.1 million shares.

Murdoch's free WSJ.com could hurt parts of Dow

NEW YORK (Reuters) - Rupert Murdoch's plan to stop charging for access to The Wall Street Journal's Web site looks certain to increase online profits but could hurt other parts of Dow Jones & Co Inc business. Free access would open up one of the world's premiere business news sources to all readers, attracting a flood of online advertising revenue and spreading the venerable business paper's reach around the globe.

Loblaw shares fall further after analyst cuts

OTTAWA (Reuters) - Loblaw Cos shares fell further on Friday as analysts cut their stock targets and profit estimates in response to disappointing results and a gloomy forecast from Canada's biggest supermarket retailer. In what it called a "tough" quarter, Loblaw's third-quarter profit slumped 42 percent as higher costs and tumbling margins offset sales gains sparked by deep price cuts.

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