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17/09/08

AIG rescue calms markets, HBOS and Lloyds in talks

LONDON/HONG KONG (Reuters) - An $85 billion dollar U.S. lifeline for American International Group gave some respite to battered financial stocks, while the UK's biggest mortgage lender HBOS Plc and Lloyds TSB contemplated a merger which would reshape British banking. Shares in Britain's HBOS Plc were initially sharply lower for a sixth consecutive day on Wednesday, but recovered after a source familiar with the matter confirmed a report that it was in merger talks with Lloyds TSB.

Nortel cuts full-year revenue outlook

TORONTO (Reuters) - Nortel Networks Corp cut its revenue forecast for 2008 and projected lower third-quarter sales than analysts expected on Wednesday, as customers further reduce capital expenditures. North America's biggest maker of telephone equipment projects full-year 2008 revenue to decline between 2 percent and 4 percent with gross margin of about 42 percent.

Policymakers struggle to restore market composure

LONDON/SINGAPORE (Reuters) - Central banks struggled to restore confidence on financial markets for a third day running on Wednesday after the United States agreed to rescue insurance giant AIG, the latest casualty in a crisis sweeping Wall Street. Asian central banks ploughed extra liquidity into short-term funding markets, although central banks in Europe took their foot off the pedal amid signs of respite to some of the sharpest surges in short-term borrowing costs of the previous two days.

Philip Morris bid for Rothmans succeeds

NEW YORK (Reuters) - Philip Morris International said on Wednesday that it succeeded in its tender offer to acquire Canada's No. 2 cigarette maker Rothmans Inc . Philip Morris, maker of Marlboro cigarettes, said 67.8 percent of Rothmans shares were tendered.

Canada maintains growth outlook despite turmoil

OTTAWA (Reuters) - Canadian Finance Minister Jim Flaherty sees no need to lower his forecast for the country's economic growth, despite a deepening global financial crisis and his expectation of a further slide in U.S. growth. Flaherty said in an interview with Reuters he was open to the idea of concerted action among policy makers in the world's most developed economies to manage the fallout from the failure of some of Wall Street's biggest firms.

Goldman and Morgan Stanley profits fall amid slump

NEW YORK (Reuters) - The two largest U.S. investment banks, Goldman Sachs Group Inc and Morgan Stanley , reported lower quarterly profits, but beat expectations on Tuesday even as the worst market slump in decades rattled Wall Street. Goldman Sachs, the largest securities firm, said third quarter earnings fell 70 percent on weaker-than-expected revenues, knocking its shares to nearly three-year lows.

Manulife seen eyeing AIG assets in U.S. upheaval

TORONTO (Reuters) - Canadian life insurance company Manulife Financial Corp could be well placed to pick off some business lines from American International Group if the troubled U.S. insurer has to sell them. Analysts say Manulife, the biggest life insurer in North America by market value, would at least consider acquiring AIG's U.S. variable annuity business, and Manulife executives have said they would like to enter the Japanese and Chinese wealth-management markets.

Teck, Fording confident in takeover proceeding

TORONTO (Reuters) - Teck Cominco moved to quell concerns about its $13.7 billion takeover of Fording Canadian Coal Trust on Tuesday, saying it believed financing for the deal was solid and that it had options if one of its lenders withdrew. "We are working hard to complete the financing by September 30, and we look forward to closing the deal," Teck Chief Executive Don Lindsay said on a webcast to address investors who have grown jittery about the $9.8 billion Teck is borrowing to finance the deal.

St Lawrence Seaway says union has strike mandate

OTTAWA (Reuters) - The company that runs the St Lawrence Seaway, the giant waterway that links the Great Lakes with the Atlantic Ocean, said on Tuesday its 445 unionized workers had voted in favor of giving their union a strike mandate but added it hoped to avoid a stoppage. The St. Lawrence Seaway Management Corp said it "continues to be confident" it can reach a new collective agreement with the Canadian Auto Workers union when talks start up again on October 6.

Toronto stocks end lower, rebound from early plunge

TORONTO (Reuters) - The Toronto Stock Exchange's main index rebounded late Tuesday to end down slightly, after sliding to its lowest level in almost two years, as investors fretted over the fate of U.S. insurer American International Group and the price of oil fell to a seven-month low. In a volatile session that threatened to build on Monday's 4 percent plunge, the S&P/TSX composite index briefly dove into bear market territory, before staging a rebound on the back of strengthening resources.

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