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Reuters Canada Business Summary

15/09/08

Canada banks, insurer face up to Lehman fallout

TORONTO (Reuters) - Canada's big banks largely shrugged off the weekend bankruptcy filing of Lehman Brothers Holdings , but the third-largest Canadian life insurance company said on Monday it will take an unspecified hit to third-quarter earnings because of its Lehman bond holdings. Canadian bank and insurance stocks fell after a dramatic weekend during which Lehman Brothers sought bankruptcy protection, Merrill Lynch agreed to be bought by Bank of America and insurance giant American International Group was waging a fight for survival.

Fording tumbles on worries Teck deal in jeopardy

CALGARY, Alberta (Reuters) - Fording Canadian Coal Trust units tumbled 10 percent on Monday as investors worried that its takeover by Teck Cominco Ltd could be derailed by the U.S. credit crisis. Merrill Lynch , part of a syndicate providing Teck with a hefty credit facility for the $14.1 billion deal, has agreed to be taken over by Bank of America Corp amid financial industry tumult that prompted a big drop in equity markets on Monday.

Toronto stocks plunge in wake of Lehman collapse

TORONTO (Reuters) - The main index of the Toronto Stock Exchange's plunged 4 percent on Monday in a broad selloff triggered by the failure of Wall Street investment bank Lehman Brothers and a big drop in the price of oil. The bankruptcy protection filing by Lehman, as well as the sale of Merrill Lynch and the fight for survival unfolding at U.S. insurance giant American International Group , sent investors fleeing from every sector of the Toronto market.

Sun Life to take charge related to Lehman

TORONTO (Reuters) - Sun Life Financial said on Monday it expects to take a charge in the third quarter related to its Lehman holdings after the bankruptcy filing of Lehman Brothers Holdings Inc over the weekend. Sun Life, Canada's third-largest life insurance company, said the amount of the charge depends on a number of factors, including the amount of expected recoveries and actuarial cash flow testing that is not performed until the close of the quarter on September 30.

Bank of Canada pumps most into markets since 2000

OTTAWA (Reuters) - Canada's central bank on Monday pumped the biggest amount of cash into markets since 2000, while policy makers sought to shore up confidence after the deepening U.S. financial crisis claimed two Wall Street giants and shook world markets. News of a bankruptcy filing by Lehman Brothers Holdings Inc and the sale of Merrill Lynch jolted investors worldwide and in Canada raised concerns that a worsening U.S. economic outlook could harm Canada's economy further due to its heavy reliance on trade with its neighbor.

Canadian dollar sags on market concerns, lower oil

TORONTO (Reuters) - The Canadian dollar slid 0.6 percent against the U.S. dollar on Monday after Lehman Brothers Holdings Inc filed for bankruptcy protection, giving a bid to the greenback, and as commodity prices weakened. Canadian bond prices saw big gains along with the larger U.S. market as investors moved out of battered equities and into more secure government debt.

Oil dives $4, hammered for second day by bank woes

SINGAPORE (Reuters) - Oil tumbled over 4 percent to a seven-month low on Tuesday, in free fall for a second day as Lehman Brothers' collapse made investors ditch oil for safe-haven assets, and on fears the credit crisis will hurt the real economy. Reports that Hurricane Ike caused minor damage to U.S. oil platforms and refineries also weighed on prices, adding to the previous session's more than $5 fall and almost 37-percent decline from its peak above $147 in mid-July.

AIG struggles to survive financial tsunami

NEW YORK (Reuters) - Insurer American International Group Inc struggled for survival a day after a financial tsunami swept away investment bank Lehman Brothers and forced the sale of rival Merrill Lynch in the biggest financial industry shake-up since the Great Depression. AIG scrambled for a financial lifeline on Monday after investment bank Lehman Brothers Holdings Inc failed to find a rescuer and Merrill Lynch & Co Inc agreed to be taken over by Bank of America Corp .

Lehman files for bankruptcy, plans to sell units

NEW YORK (Reuters) - Lehman Brothers Holdings Inc filed for bankruptcy protection after trying to finance too many risky assets with too little capital, becoming the largest U.S. bankruptcy and the highest-profile casualty of the global credit crisis. Lehman is expected to sell most of its businesses, including its broker-dealer operations and its Neuberger Berman asset management unit.

Home resales cool in August

TORONTO (Reuters) - Home resales in Canada dropped in August from July as the economy softened and the big rise in prices in the boom years in Western Canada left properties still out of reach for many potential buyers. The Canadian Real Estate Association said on Monday that sales of existing homes in major markets fell 3.4 percent to 24,887 units on a month-over-month basis.

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