News from Reuters

CA-BUSINESS Summary

09/11/08

Flaherty sees delayed benefits of weaker Canadian dollar

TORONTO (Reuters) - Canadian manufacturers will eventually benefit from a sharp drop in Canada's dollar by encouraging exports to the United States, Finance Minister Jim Flaherty said, but in the short term, the volatility will disrupt planning by businesses. Flagging U.S. demand means auto-related businesses and other manufacturers in Ontario and Quebec will not immediately reap the benefits of the weakened Canadian dollar, Flaherty said in an interview with Bloomberg News that appeared on its website late Saturday.

Oil up $2 at above $63 on China stimulus, G20 moves

PERTH (Reuters) - Oil leapt over $2 to above $63 a barrel on Monday, lifted by hopes that China's massive $600 billion stimulus package and proposals from world's leading economies to boost growth would fight off the threat of global recession and revive energy demand. At the annual meeting of the G20 group in Brazil, finance ministers and central bank governors representing 90 percent of the world's economy vowed to take all necessary measures to get financial markets back on its feet and counter the credit crisis, with China going a step further by announcing a massive stimulus plan.

GM to temporarily cut 500 jobs at Ontario plant

TORONTO (Reuters) - General Motors of Canada said on Friday it will temporarily lay off 500 workers at its Oshawa, Ontario, car plant as the U.S. economic slowdown slashes sales of cars and trucks. "Because of the tough U.S. market, what we're doing is slowing the line rate of the Impala line at the Oshawa car plant, and that impacts 500 people that will go on temporary layoff until we have recovery in the U.S. economy," GM Canada spokesman Stew Low told Reuters.

Hyundai Motor denies interest in Chrysler assets

SEOUL (Reuters) - South Korea's Hyundai Motor Co <005380.KS> on Saturday denied its interest in Chrysler's assets, adding it had no capacity for a new acquisition as it focused on completing construction of overseas plants. On Friday, Reuters reported Hyundai had had talks with Chrysler LLC owner Cerberus Capital Management about a potential acquisition of the struggling U.S. automaker's Jeep brand and possibly other assets, citing people with knowledge of the talks.

Canada readies more measures to ease crisis

SAO PAULO (Reuters) - The Canadian government will take further action to stabilize credit markets and shore up economic growth if necessary, Finance Minister Jim Flaherty said on Sunday. "We must remain steadfast and do whatever is necessary to prevent our financial systems from being put in harm's way by global events," Flaherty told reporters on a conference call from Sao Paulo, Brazil.

New calls for Treasury to help carmakers

WASHINGTON (Reuters) - There were fresh calls on Sunday for the Bush administration to help stalled U.S. automakers, but Democratic and Republican officials said taxpayers cannot repeatedly support business rescues. Republican Sen. Mel Martinez of Florida delivered important backing for those urging the Bush administration to use a recently launched $700 billion corporate bailout program to rescue General Motors Corp, Ford Motor Co. and Chrysler LLC with desperately needed cash.

Ottawa commits to addressing auto industry concern

OTTAWA (Reuters) - Industry Minister Tony Clement met most of the Canadian auto industry's top brass on Thursday and said on Friday he was committed with the Ontario government to addressing their concerns. "As the newly appointed minister, I want to assure Canadians that I am very sensitive to the hardships our country, and especially our manufacturing sector, are facing," he said in a statement. "Yesterday, I met with CEOs from (the Canadian branches of) GM , Chrysler , Toyota <7203.T>, Magna , Linamar and spoke to the CEO of Ford and listened to their concerns about the future. I also met with Michael Bryant, Ontario's minister of economic development, and we are committed to working together to address these issues."

Guinea cancels Aredor diamond mining license

CONAKRY (Reuters) - Guinea has canceled a diamond mining license held by Aredor, which is 85 percent owned by Toronto-listed Azure Resources Corp , the government said on Saturday. Aredor is the largest diamond mining operator in the West African country but the government accused it earlier this year of having stopped all activities for three years despite promising various ministers it would restart its operations.

Roche sticks by $43.7 billion Genentech bid: report

ZURICH (Reuters) - Roche Holding AG is sticking by its $43.7 billion offer to buy out the rest of Genentech Inc it does not already own, its pharmaceuticals chief said in an interview published on Sunday. The Swiss drugmaker, which already holds 56 percent of Genentech, has had its July offer to buy out the remainder of its U.S. biotech partner rebuffed.

Hunkering down in the oil sands

CALGARY, Alberta (Reuters) - Canada's once-burgeoning oil sands industry has had a reversal of fortune as the world financial crisis has instilled discipline in companies that just months ago were concerned only with growth. And that has prompted a shake-out.

© Reuters Limited. All Rights Reserved.
Reproduction or redistribution of Reuters content, including framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.