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CA-BUSINESS Summary

18/11/08

Bank fears suck down Asia stocks

HONG KONG (Reuters) - Asian stocks fell by up to 5 percent on Tuesday as prospects of a deep global recession and the biggest job cut plan in history at Citigroup doused expectations for a financial sector recovery in 2009. Major European stock market futures shed as much as 0.6 percent in early trade, following losses in Asia and U.S. markets. S&P 500 futures were down 0.8 percent.

Search is on for new Yahoo CEO after Yang steps down

SAN FRANCISCO/NEW YORK (Reuters) - Yahoo Inc said Jerry Yang will step down as chief executive as soon as the board finds a replacement, sending its shares up 4 percent on hopes his departure will clear the way for a deal with Microsoft. Yang -- who will return to his former role as Chief Yahoo, focusing on strategy and technology -- tried to carve an independent strategy for Yahoo and was blamed when Microsoft Corp walked away from an offer to buy the company earlier this year.

Oil rebounds to near $56

SINGAPORE (Reuters) - Oil rose near $56 a barrel on Tuesday, rebounding from a near 22-month low on stronger U.S. industrial output data, but fears that the global economic slump was further trimming fuel demand kept a lid on gains. U.S. industrial output rebounded by a stronger-than-expected 1.3 percent in October after a downwardly revised September drop that was the biggest fall in more than 62 years, according to a Federal Reserve report.

Petro-Canada defers decision on Fort Hills mine

CALGARY, Alberta (Reuters) - Petro-Canada said on Monday it will delay a final go-ahead for the mining portion of its planned C$21 billion ($17 billion) Fort Hills project, looking to the weak economy and falling oil to lower overheated costs that have plagued rival oil sand ventures. The company, Canada's No. 4 integrated oil exploration and refining firm, said it will not make a decision on proceeding with the mine until next year, instead of December as initially promised, because it expects costs to decline as oil sands projects fall by the wayside.

G20 finance ministers to meet by end-March: Canada

OTTAWA (Reuters) - Finance ministers of the Group of 20 leading developed and developing nations will meet by March 31 to follow up on the weekend's Washington summit, a senior Canadian government official said on Monday. The G20 summit communique had committed finance ministers to implement a series of high-priority actions by March 31. It did not specifically mention a ministerial meeting by then, but the official said there would be one.

TSX tumbles on financials, commodities

TORONTO (Reuters) - The Toronto Stock Exchange's main index sank nearly 3 percent on Monday as financial services and commodity-related issues were pulled down by gloomy sentiment from a faltering world economy. The influential financial services sector dropped 3.8 percent as investor sentiment soured on news that Japan's economy had joined Europe's by slipping into recession, and as the weekend's meeting of the G20 countries produced few concrete stimulus steps.

Too early to speak of aid to Canada autos: PM aide

OTTAWA (Reuters) - It would be premature for the Canadian government to announce in a policy speech this week what, if any, aid it may give to the struggling auto sector, a top aide to Prime Minister Stephen Harper told a briefing on Monday. The Conservative government is due to unveil its plans for the new session of parliament at 2 p.m. on Wednesday.

Canadian dollar, bonds rise on weak data

TORONTO (Reuters) - The Canadian dollar ended higher against the U.S. currency on Monday, rebounding from morning lows as the greenback retreated broadly following weak U.S. manufacturing data. Canadian bond prices rose alongside U.S. treasuries as the weak U.S. manufacturing data and gloomy economic news from Japan fueled fears of a global recession, driving safe-haven buying of government debt.

EDC to stop insuring Chrysler receivables

TORONTO (Reuters) - Export Development Canada is no longer taking requests from autoparts makers for insurance against receivables due from Chrysler LLC , the government agency said on Monday, signaling growing fears the automaker may go bankrupt. EDC backstops mainly small and medium-sized businesses by providing insurance covering up to 90 percent of losses if a customer refuses to pay. That includes when a customer goes bankrupt, declares insolvency or cancels a contract.

Congress takes first step on automaker bailout

WASHINGTON (Reuters) - Senate Democrats took the first step toward bailing out the nation's crippled auto industry on Monday by proposing a $25 billion loan program, a plan that faces stiff political headwinds with millions of jobs potentially riding on the outcome. With the year's congressional calendar down to a few days, lawmakers and the Bush administration sparred over the best way to extend help to General Motors Corp , Ford Motor Co and Chrysler LLC.

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