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CA-BUSINESS Summary

07/10/08

Toronto stock index falls 300 points

TORONTO (Reuters) - The Toronto Stock Exchange's main index sank more than 300 points on Tuesday as the heavily weighted energy and financial services sectors were pulled down by mounting worries about fallout from the credit crisis. The S&P/TSX composite index <.GSPTSE> was down 300.05 points, or 2.93 percent, to 9,930.38.

Bernanke signals readiness to cut rates

WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke on Tuesday signaled a readiness to lower U.S. interest rates in a dramatic shift to support an economy battered by a financial crisis of "historic dimension." Recent economic data and financial developments show the outlook for growth has worsened, Bernanke told the National Association for Business Economics. The outlook for inflation, while still uncertain, has improved somewhat as oil and other commodity prices have eased, he added.

UK poised to unveil bank rescue plan: report

LONDON (Reuters) - Britain's government is poised to announce a "comprehensive" rescue package for the banking system, the BBC reported on Tuesday, including the possibility of injecting capital into banks. "It will be big, it is the government's attempt to stabilize the banking system," BBC economics correspondent Robert Peston reported. "The Treasury has been working on the plan for weeks."

Wells seen winning 75-80 percent Wachovia deposits: source

NEW YORK (Reuters) - Wells Fargo & Co is likely to get about 75 percent to 80 percent of Wachovia Corp's deposits, while Citigroup is likely to get closer to 20 percent to 25 percent of the deposits, a person briefed on the matter said on Tuesday. The situation is in flux, and the outcome is still unclear, the person cautioned, adding that Wells Fargo may end up with 100 percent of Wachovia's deposits, and Citigroup with none.

Fed steps up in global scramble to stem crisis

NEW YORK/WASHINGTON (Reuters) - The Federal Reserve stepped forward as a commercial lender of last resort and signaled a readiness to cut interest rates as governments around the world scrambled to stem the global financial crisis and calls arose for concerted action. Federal Reserve Chairman Ben Bernanke signaled a readiness to lower U.S. interest rates to support an economy battered by a financial crisis of "historic dimension".

Bank of Canada opts out of coordinated U.S. dollar actions

TORONTO (Reuters) - The Bank of Canada said on Tuesday it will not participate in coordinated central bank actions aimed at increasing U.S. dollar liquidity. The central bank said it welcomes central bank initiatives to provide U.S. dollar liquidity but felt it was not necessary for it to participate in the auctions at this time.

Enbridge says Lehman small part of its credit group

CALGARY, Alberta (Reuters) - Enbridge Inc expects to be able to issue debt at what it considers to be a reasonable spread, Richard Bird, the company's chief financial officer, said at an investor presentation on Tuesday. Bird said Enbridge, Canada's No. 2 pipeline company, has had little difficulty drawing on its credit facilities, though now-bankrupt investment bank Lehman Brothers had 0.5 percent of a facility sponsored by a total of 24 banks. He said some of Lehman's commitment had been taken up by a Japanese bank in the group.

Canadian dollar falls, U.S. dollar regains safe-haven status

TORONTO (Reuters) - The Canadian dollar fell against the U.S. dollar again on Tuesday as persistent concerns about fallout from the global financial crisis overcame a rebound in commodity prices. Bond prices fell as investors sought bargains in equity markets following Monday's big stock market drops.

Oil rises on Australia cut, Fed move

NEW YORK (Reuters) - Oil prices rose on Tuesday on investor optimism after a big interest rate cut in Australia and the U.S. Federal Reserve's announcement that it would begin buying commercial paper. The Federal Reserve's move was aimed at easing the widening U.S. financial crisis and analysts said it may help thaw frozen credit markets.

Global equities slide amid investor doubts, gold jumps

NEW YORK (Reuters) - Investors took a dim view of paltry European efforts to shore up unsettled markets, sending U.S. and European equity stocks lower on Tuesday, while another emergency Federal Reserve move to shore up credit markets curbed the safe-haven appeal of government debt. The U.S. dollar and the yen fell after the Fed announced the creation of a new funding facility to thaw the frozen commercial paper market that is critical for funding day-to-day operations for many companies. That move raised risk appetites in currency markets, while it cut prices for U.S. and euro zone government debt.

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