News from Reuters

CA-BUSINESS Summary

19/11/08

Risks to economy growing: Bank of Canada

OTTAWA (Reuters) - The Bank of Canada sees a greater risk that economic growth and inflation will be lower than it projected just a month ago as the global financial crisis ripples through the domestic economy, Governor Mark Carney said on Wednesday. In a speech prepared for delivery in London, Carney repeated that the central bank would likely have to cut its key interest rate further to keep the export-reliant economy afloat as banking and auto woes reverberate around the world.

TSX dragged down by financials at open

TORONTO (Reuters) - The Toronto Stock Exchange's main index tilted lower at the market open on Wednesday and erased the previous session's gains, due largely to a slide in the heavily-weighted financial index. The S&P/TSX composite index <.GSPTSE> fell 47.00 points, or 0.53 percent, to 8,788.73 at the market open.

U.S. housing slump hits Tembec's results

TORONTO (Reuters) - Tembec Inc reported a quarterly loss on Wednesday and warned that it would stay under pressure due to low lumber prices. The Canadian forest products company said it lost C$4 million ($3.2 million), or 4 Canadian cents a share, in its fourth quarter, compared with a profit of C$22 million, or 25 Canadian cents a share, in the same period last year.

GM Canada faces pension crisis: report

TORONTO (Reuters) - General Motors of Canada's pension funds had a C$4.5 billion ($3.64 billion) shortfall this time last year, and it has likely grown since the market collapse. This raises more financial concerns for the Ontario government if it must backstop the funds should the company fall into bankruptcy protection.

Auto execs set for more grilling on aid plan

WASHINGTON (Reuters) - Auto executives headed to Capitol Hill for a second day to argue their case for a $25 billion aid package in the face of mounting political opposition to another huge government bailout. The Wednesday hearings are slated to start at about 10 a.m. before the House Financial Services Committee.

Metro Inc's profit rises despite flat sales

TORONTO (Reuters) - Metro Inc reported a higher quarterly profit despite flat sales as an overhaul of the supermarket operator's computer system and rebranding moves in the big Ontario market began to pay off. Canada's third-largest food retailer said on Wednesday it earned C$72.3 million ($58.6 million), or 64 Canadian cents a share, during its fiscal fourth quarter, up from C$57.6 million, or 49 Canadian cents a share, in the same period last year.

Oil falls below $54 as economic gloom deepens

LONDON (Reuters) - Oil's decline deepened to below $54 a barrel on Wednesday, pressured by economic weakness that will further erode the world's demand for fuel. U.S. crude fell to $53.30 a barrel, its lowest since January 2007, and by 8:11 a.m. EST was trading 61 cents lower at $53.78. Oil has dropped by nearly two-thirds from a record above $147 a barrel in July.

Canada leading indicator slips 0.4 percent in October

OTTAWA (Reuters) - Canada's composite leading indicator dropped 0.4 percent in October from September, pulled down by sharp declines in the stock market, Statistics Canada said on Wednesday. Market analysts had on average forecast that the indicator would fall by 0.3 percent in October. Statscan revised the September figure to a decrease of 0.3 percent from an initial 0.2 percent decrease and the August figure to an increase of 0.2 percent from an initial 0.3 percent.

Toyota to cut output and Nissan downbeat

TOKYO (Reuters) - Reeling from a relentless sales slide, Toyota Motor Corp <7203.T> said on Wednesday it would stop all of its North American factories for two days next month, while rival Nissan Motor Co <7201.T> renewed its pessimism over the industry's near-term prospects. Tight credit and worries over the spread of recession around the world have battered car sales in all major markets, forcing automakers to cut production to prevent inventories from ballooning further.

U.S. auto fears weigh on global stocks

LONDON (Reuters) - World stocks and oil fell on Wednesday while government bonds and the yen gained as U.S. car makers begged for a bailout from Washington, adding to evidence that the credit crisis is hitting the real economy. U.S. auto executives warned Congress on Tuesday that their industry was teetering on the brink of disaster as they pleaded for a $25 billion aid package.

© 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.