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Reuters Canada Business Summary

18/11/07

Paulson sees volatile markets, healthy economy

KLEINMOND, South Africa (Reuters) - Financial market turmoil may last some time, but U.S. Treasury Secretary Henry Paulson told G20 members on Sunday he was confident that the U.S. economy will keep growing. "I explained that we are going through a period of reassessing risk and that will take time and we will experience volatility along the way," Paulson said in a statement released at the conclusion of a two-day meeting of the Group of 20 mostly industrialized and emerging economies.

Northern Rock to have government loan extended: report

LONDON (Reuters) - Stricken British bank Northern Rock could have its 25 billion pound ($51 billion) Bank of England lifeline extended indefinitely, The Sunday Telegraph has reported. European Union guidelines currently block the bank from receiving state aid beyond February 17, but the newspaper said on Sunday that advisers to British Chancellor Alistair Darling had bowed to pressure from the firm and were working on a plan to change the status of the funding to 'restructuring aid'.

The rally that hasn't come

TORONTO (Reuters) - Like parents who forget to pick up their child at school, the usually-bountiful months of November and December seem poised to leave investors out in the cold this year. Many have been left scratching their heads as the Toronto Stock Exchange's main index bucks a trend that has lasted for a decade. It has tumbled 7.5 percent midway through November, a month during which it has risen by an average 1.6 percent for the past 10 years.

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.

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