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CA-BUSINESS Summary

15/10/08

Toronto stocks take a big hit as commodities fall

TORONTO (Reuters) - The Toronto Stock Exchange's main index plunged again on Wednesday as resource stocks were pressured by falling commodity prices on concerns global economic weakness would cut demand. The tumble chipped away at big gains made on Tuesday when the benchmark index logged a record 9.82 percent rise on hopes that moves by policy-makers around the globe would help fix the financial crisis.

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.

Economists warn of possible 2009-10 Canada deficit

TORONTO (Reuters) - The dust had barely settled on Tuesday's Canadian election when economists and a prominent business group said the newly returned Conservative government may need to adjust course to avert a possible budget deficit next year. The Canadian Chamber of Commerce urged Prime Minister Stephen Harper on Wednesday to give a fiscal update as soon as possible because the global economic outlook has worsened in recent weeks.

Canada business eyes election gains, but small ones

VANCOUVER, British Columbia (Reuters) - If Canadian executives expected business-friendly gains to result from the Conservative victory in Tuesday's general election, they may have to wait, but observers said so too will environmentalists and groups looking for more regulation. Canadians awoke on Wednesday to find Conservative Prime Minister Stephen Harper still holding a minority government, albeit a stronger one, and the country still embroiled in the global economic uncertainty.

Teranet withdraws opposition to Borealis bid

TORONTO (Reuters) - Teranet Income Fund , which holds a monopoly on the electronic land registry in the Canadian province of Ontario, said on Wednesday it withdrew its opposition to an C$11-a-unit hostile bid by Borealis Infrastructure Management because of market conditions. Instead, the fund has left it up to unitholders to make their own decision on the deal, valued at C$1.7 billion. Having reviewed its options and after running an extensive auction process, Teranet said it believed a superior offer was unlikely to surface before the Borealis bid expires, which had been due to occur on October 17.

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.

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.

Markets tumble as recession fears trump bailout

NEW YORK (Reuters) - Gloomy economic data and warnings from the U.S. Federal Reserve that hard times were still to come wiped out two days of relative optimism about the credit crisis and sent markets into free-fall on Wednesday. In the worst one-day percentage declines since the stock market crash of 1987, the Dow Jones industrial average ended down 733 points or 7.87 percent, and the S&P 500 index lost 9 percent. The losses reversed Monday's record surges that had been sparked by optimism about bank bailouts.

Oil falls for 3rd day to 13-month low near $73

TOKYO (Reuters) - Oil fell for a third day to a new 13-month low near $73 a barrel on Thursday, amid continued worries that a deepening economic slowdown will cut into already weakening demand. Traders are also waiting for weekly U.S. oil inventory data due later in the day. Analysts polled by Reuters expect the numbers to show increases in crude and oil products.

Canadian dollar rattled by tumble in oil prices

TORONTO (Reuters) - The Canadian dollar fell sharply versus the U.S. dollar on Wednesday as a slide in the price of oil, a key Canadian export, dragged the currency down by 2 percent and stripped it of the gains recorded early this week. Canadian bond prices closed higher across the curve due to some weak U.S. economic data, an equity market selloff and market expectations for more central bank rate cuts.

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