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CA-BUSINESS Summary

18/11/08

TSX rises as energy, financials help

TORONTO (Reuters) - The malaise hanging over global equity markets eased on the Toronto Stock Exchange on Tuesday, as a volatile session ended with the benchmark index nosing into positive territory as energy and financial stocks edged higher. The session finished with a slight gain, which pales in comparison to the magnitude of losses experienced by the S&P/TSX composite index <.GSPTSE> since the start of the year, even as investor remained focus on the global financial crisis and the related fallout.

Scotiabank sees C$595 million in Q4 write-downs

TORONTO (Reuters) - Bank of Nova Scotia said on Tuesday it will take charges of C$595 million ($484 million) after tax in the fourth quarter due to sliding markets and "unprecedented volatility," marking the first of what could be several bank pre-announcements ahead of reporting season. Scotiabank, Canada's third-largest bank, said the charges relate to the September bankruptcy of Lehman Brothers Holdings , adjustments to the fair value of available-for-sale securities, mark-to-market losses on collateralized debt obligations (CDOs), and charges for other derivatives.

Chrysler Financial Canada to cut jobs, offices

TORONTO (Reuters) - Chrysler Financial Canada said on Tuesday it is closing offices across the country to cut costs, a move that will affect about 145 of its employees, or nearly half its workforce. Facing a plunge in North American vehicle sales, the financial arm for Chrysler in Canada said it will close its Calgary office immediately, and will shutter its Montreal office and its current headquarters in Windsor, Ontario, by May 1. It will consolidate its operations in Toronto and keep "a handful" of people in Windsor.

Despite downturn, Nortel CEO keeps upbeat tone

TORONTO (Reuters) - Even as losses and layoffs mount at Nortel Networks Corp and analysts raise questions about the telecom equipment maker's future, its chief executive continues to believe the company can win market share and succeed. In an internal memo sent to employees on Tuesday and obtained by Reuters, Mike Zafirovski urges employees to "work to drive down costs and drive up sales" and "understand the realities of a tough marketplace, but use them to seize share and have faith that we will succeed in the end."

Canada minister off to Detroit, Washington on aid

OTTAWA (Reuters) - Canadian Industry Minister Tony Clement will meet executives from the Big Three auto firms in Detroit on Wednesday and officials in Washington on Thursday to discuss requests for a bailout for the automobile industry. A statement on Tuesday from Clement, who has said he was not ruling aid for the sector either in or out, said he would travel with Michael Bryant, minister of economic development of Ontario, Canada's biggest car-making province.

Syncrude ends holdout with new Alberta royalty deal

CALGARY, Alberta (Reuters) - Syncrude Canada Ltd has signed on to Alberta's new royalty terms after holding out for nearly a year, but the world's largest oil sands producer will get a six-year transition, it said on Tuesday. Meantime, Syncrude will pay an additional C$975 million ($792 million) to the province between 2010 and 2015.

Rogers sees lower roaming revenue as travel slows

TORONTO (Reuters) - Rogers Communications Inc expects to generate less roaming revenue on its wireless network as a weakening U.S. economy discourages Americans from traveling to Canada, its chief financial officer said on Tuesday. "We think travel into Canada and the roaming revenue is going to be lower going forward, or at least flat," Bill Linton told an analyst and investor conference.

Union must be part of auto sector rescue: Clement

OTTAWA (Reuters) - The Canadian Auto Workers union needs to co-operate in any proposed government aid package for the struggling auto sector, Industry Minister Tony Clement said on Tuesday. "It just stands to reason -- and I think Canadians and auto workers would support this -- (that) if we're in a situation where the Canadian government is coming to the table, where the manufacturers and the executives are coming to the table, then I think it's in that spirit of co-operation that we would like the CAW at the table too," he told reporters.

Alaska Air may defer Bombardier plane deliveries

TORONTO (Reuters) - Alaska Air Group is in talks with Canadian manufacturer Bombardier about deferring deliveries of Q400 turboprop aircraft to its Horizon Air unit, the company said in a filing on Tuesday. The move comes as Alaska Air and other U.S. airlines cut jobs and flights to counter the effects of a slowing economy that has reduced demand for air travel.

Oil steady above $54, eyes on U.S. stocks data

SINGAPORE (Reuters) - Oil prices were little changed above $54 a barrel on Wednesday ahead of data expected to show U.S. crude stocks rose last week, another sign that the global economic slump is clipping fuel demand. American banking and car maker woes reverberated around the globe and the International Monetary Fund said it would need extra funding to help countries through the downturn.

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