News from Reuters

CA-BUSINESS Summary

20/11/08

TSX plunges to 5-year low on oil, TD warning

TORONTO (Reuters) - Toronto Stock Exchange's main index sank to its lowest level in five years on Thursday as an earnings warning from Toronto-Dominion Bank pounded the financials group and the price of crude slid below $50 a barrel. The heavily-weighted financials group plunged 12.2 percent, pulled lower by TD Bank, which announced it would take after-tax charges of C$350 million for credit-trading losses. Earlier this week, Bank of Nova Scotia said it would take after-tax charges of C$595 million.

Democrats demand U.S. Big 3 offer survival plan

WASHINGTON (Reuters) - Democratic congressional leaders, seeking to salvage a bailout of the Big Three automakers, demanded executives provide a business survival plan in exchange for their support of up to $25 billion in loans. The ultimatum came on Thursday after the Democratic leaders failed to persuade the White House and congressional Republicans to use part of a $700 billion financial rescue fund to prop up the auto industry.

Loonie pummeled by commodities, stock rout

TORONTO (Reuters) - The Canadian dollar lost 2-1/2 U.S. cents against the U.S. dollar on Thursday as commodity prices weakened and global stock markets were routed. Canadian bond prices surged as the weakness in stock markets made government debt more attractive.

Canadian, U.S. officials meet on automaker aid

WASHINGTON (Reuters) - Canadian officials met U.S. lawmakers on Thursday to ensure any congressional bailout of General Motors Corp , Ford Motor and Chrysler LLC keeps the Canadian side of the automotive supply chain in mind. The Canadian government has pledged support for the auto sector, but has not detailed any specific action.

Harper vows to do what it takes to combat crisis

OTTAWA (Reuters) - Canada will take whatever fiscal and monetary measures are needed to combat the effects of the global financial crisis, Prime Minister Stephen Harper said on Thursday, predicting more economic gloom to come. Harper also told Parliament that the Conservative government would not balance the budget by raising taxes or cutting essential services in a time of upheaval.

TD Bank sees C$350 million trading charge, stock drops

TORONTO (Reuters) - Toronto-Dominion Bank said on Thursday that the "dramatic" lack of liquidity in global credit markets will prompt charges of C$350 million ($273 million) for credit-trading losses, reducing its fourth-quarter earnings. Shares of Canada's second largest bank fell to a four-year low on Thursday morning, before paring some of the losses. Other bank stocks were also down amid a general stock market selloff on weak economic data and continued concern about U.S. automakers.

Teck cuts dividend, sells assets to pay down debt

TORONTO (Reuters) - Teck Cominco will slash spending, sell assets, withdraw from the Petaquilla copper project in Panama and suspend dividend payments under a sweeping plan to cut debt generated by its acquisition of Fording Canadian Coal Trust, the company said on Thursday. Combined with a previously announced C$1.1 billion tax break, the measures total C$2.4 billion ($1.9 billion) and are aimed mainly at paying down a $5.8 billion bridge loan as quickly as possible. Teck also took on $4 billion term debt in the $13 billion takeover of Fording, which closed in October.

Alberta royalty break fails to halt oil stock skid

CALGARY, Alberta (Reuters) - Alberta's 11th-hour concession to the oil industry on royalties failed on Thursday to prevent a 15 percent drop in Canadian energy stocks, which hit their lowest level in more than four years due to tumbling oil and gas prices. Canada's biggest energy-producing province, fearing a major drop in drilling and a loss of jobs, moved on Wednesday to offer companies a lower transitional royalty rate for new wells drilled after January 1.

Oil drops 7 percent to 3-1/2-year low below $50

NEW YORK (Reuters) - Oil prices dropped more than 7 percent to below $50 a barrel on Thursday as a bearish U.S. jobs report intensified concerns of a long and deep global recession and further crushed fuel demand expectations. The U.S. government reported the number of workers making new claims for jobless benefits surged last week to the highest level in 16 years, helping to push down global equity markets.

Agrium, Potash say time is right for acquisition

TORONTO (Reuters) - Top fertilizer producers Agrium Inc and Potash Corp of Saskatchewan said on Thursday they are on the lookout for acquisitions as their industry struggles, even though their own shares have tumbled. Despite those ambitions, few potential targets remain after a wave of consolidation that swept the industry during the commodity boom that has since gone bust, executives with the Canadian-based companies said at a TD Newcrest agricultural conference in Toronto.

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