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CA-BUSINESS Summary

15/10/08

TSX drops 500 points

TORONTO (Reuters) - Toronto's main stock index was down more than 500 points at midafternoon on Wednesday as falling metals and oil shares helped eat into the previous session's big gain. The Toronto Stock Exchange's S&P/TSX composite index <.GSPTSE> was down 509.98 points, or 5.1 percent, at 9,445.68.

PM says will protect financial system

CALGARY, Alberta (Reuters) - Prime Minister Stephen Harper will meet with other world leaders and put Canada's parliament back to work quickly to hammer out ways to weather the credit crisis and keep the country's economy competitive, he said on Wednesday. Harper, speaking to reporters the day after his Conservative Party was reelected with a stronger minority, also said he expects to present an economic update before the end of November.

EnCana split derailed by global credit crunch

TORONTO/CALGARY, Alberta (Reuters) - EnCana Corp said on Wednesday that global market turmoil has forced it to delay plans to split into natural gas and oil sands arms and that it would wait until markets calm before revisiting the idea. The company, Canada's biggest independent oil and gas producer, added the credit crunch, which has cut the price of oil by nearly half since its July peak, has not yet dramatically cut its production or cash flow, which remain within the company's 2008 targets.

Canada economy to steer clear of recession: report

TORONTO (Reuters) - The Canadian economy will avoid slipping into a recession as domestic demand helps to offset the negative impact of falling commodity prices, the Conference Board of Canada said on Wednesday. In its autumn outlook, the Conference Board said the economic turmoil plaguing the United States will limit Canadian economic growth to 0.8 percent this year, down from the 1.7 percent the board forecast in its summer outlook.

Flaherty reelected, says crisis not over

OTTAWA (Reuters) - Finance Minister Jim Flaherty, who was reelected on Tuesday, vowed to shield Canadian homeowners and businesses from the global credit crisis and run a balanced budget this year. Flaherty declined to say whether he would continue as finance minister in a second minority Conservative government, which will likely involve a cabinet shuffle.

Bank of Canada adds C$10 billion to ease bank funding

OTTAWA (Reuters) - The Bank of Canada pumped C$10 billion ($8.5 billion) into one-month money markets on Wednesday, following through on commitments at the G7 to do whatever it takes to unlock credit flows in the financial system. The liquidity transaction, called a purchase and resale agreement, obtained an average yield of 2.808 percent.

Global recession fears deepen, markets tumble

NEW YORK (Reuters) - Federal Reserve Chairman Ben Bernanke warned on Wednesday that credit market turmoil posed a "significant threat" to an already slowing American economy as new data deepened recession fears, sending stocks tumbling. Major U.S. stock indices fell as much as 7 percent.

Oil hits 13-month low on recession concerns

NEW YORK (Reuters) - Oil tumbled on Wednesday, touching 13-month lows on expectations that the deepening economic slowdown will cut into already weakening demand. Investors scurried to safe havens and global stock prices fell sharply as concerns over a potential global recession wiped away optimism seen earlier this week over governments' steps to avert a financial meltdown.

CI Financial to become a corporation, units fall

TORONTO (Reuters) - CI Financial Income Fund said on Wednesday it wants to convert from an income trust to a corporation before yearend to give it better access to capital markets and make it easier to pursue business deals, including opportunities outside of Canada. CI, one of Canada's largest independent fund managers, said its board has agreed the new corporation would pay a quarterly cash dividend of 12 Canadian cents (10.3 U.S. cents) a share. It also said it might distribute earnings to owners by buying back shares.

Loonie knocked down by lower oil prices

TORONTO (Reuters) - The Canadian dollar fell versus the U.S. dollar on Wednesday as the price of oil, a major Canadian export, tumbled to a 13-month low, while news that Canada had reelected a minority Conservative government had little impact. Domestic bond prices were mostly flat following losses in the previous session, helped partly by weak U.S. economic data and expectations for more central bank rate cuts.

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