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CA-BUSINESS Summary

23/09/08

Paulson and Bernanke warn of costs of bailout delay

WASHINGTON (Reuters) - U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke on Tuesday urged Congress to act swiftly to put in place a $700 billion financial system bailout, warning delay would put the economy at risk. Testifying before a sometimes-skeptical Senate Banking Committee, they said financial markets were in serious stress and needed to be stabilized quickly by cleansing them of illiquid assets.

WaMu presses ahead with multiple suitors

PHILADELPHIA (Reuters) - Washington Mutual Inc , the large U.S. savings and loan beleaguered by mortgage losses, is pressing ahead for a takeover deal by talking to multiple suitors, as well as exploring options to raise capital, sources familiar with the situation said on Tuesday. U.S. regulators are eager for the company to forge a successful deal, but no deadline or requirement has been placed on the bank to accept a takeover offer or split itself among several suitors, the sources said.

Oil falls $3 as bailout worries weigh

LONDON (Reuters) - Oil prices fell $3 on Tuesday -- reversing direction after Monday's dramatic rally -- as dealers focused on slowing global energy demand and doubts over a U.S. plan to rescue the financial sector. A rebound in the U.S. dollar added to weakness across commodities markets, continuing a strong negative correlation between the greenback and commodities that has been in place for at least several months.

TSX pushes lower on weak resources

TORONTO (Reuters) - The Toronto Stock Exchange's main index slid more than 100 points on Tuesday, weighed down by weak resource issues, while investors eyed congressional testimony on the $700 billion plan to bail out the battered U.S. financial sector. The S&P/TSX composite index <.GSPTSE> was down 102.61 points, or 0.81 percent, at 12,535.46 just after noon.

RIM to launch touchscreen BlackBerry "soon": Verizon

TORONTO (Reuters) - Research In Motion is preparing to launch the long anticipated touch-screen version of its BlackBerry smartphone, according to an official promotion e-mail from U.S. carrier Verizon Wireless . The device will be known as the BlackBerry Storm 9530 and will feature "global capabilities", Verizon said, without providing specifics. It also did not give an exact launch date, saying only that the smartphone is "coming soon".

Honeywell finds alternative to explosive fertilizer

WINNIPEG, Manitoba (Reuters) - U.S. manufacturer Honeywell International Inc said on Tuesday it has found a way to make a safer alternative to ammonium nitrate, a fertilizer that has been used as a material to make bombs. The company said it has fused ammonium nitrate with ammonium sulfate to create a new dry nitrogen fertilizer that it hopes to gear to fruit, vegetable and nut tree producers.

CPI ebbs but annual inflation at 5-year high

OTTAWA (Reuters) - Falling gasoline costs provided some relief to Canadians in August, knocking down consumer prices for the first time since January but annual inflation stayed at a five-year high, likely discouraging the Bank of Canada from cutting interest rates. The consumer price index dipped 0.2 percent in the month thanks to a 6.6 percent slide in gasoline from record highs, Statistics Canada said on Tuesday. But inflation sped to 3.5 percent on the year from 3.4 percent in July, its highest since March 2003 as energy prices remained sharply above 2007 levels.

Loonie inches higher vs weakened greenback

TORONTO (Reuters) - The Canadian dollar was slightly stronger against the U.S. dollar on Tuesday, as uncertainty about the U.S. government's $700 billion rescue plan for its troubled financial sector weighed on the greenback. Canadian bond prices were little changed, lagging the moves of the bigger U.S. market, as investors waited to see what would develop with the proposed U.S. bailout package.

RBC luring consultants from struggling U.S. peers

TORONTO (Reuters) - Royal Bank of Canada is beefing up its wealth management business amid the U.S. credit crisis by hiring experienced U.S. financial consultants, rather than looking at acquiring entire firms, a senior bank executive said on Tuesday. The bank is getting calls from financial consultants at embattled U.S. companies who are interested in jumping ship, George Lewis, head of RBC's wealth management unit, said at an investor conference.

Genuity Capital starts 11 Canadian gold producers

(Reuters) - Genuity Capital initiated coverage of 11 Canadian gold producers, saying it expects gold equities to have a 31 percent return over the next 12 months. "Continued deleveraging and unwinding of the short dollar/long commodities trade represent the strongest headwind for gold over the near term," said analyst Tony Lesiak in a note to clients.

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