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CA-BUSINESS Summary

21/11/08

TSX turns negative as financials weigh

TORONTO (Reuters) - Toronto Stock Exchange's main index turned negative not long after the open on Friday, as weakness in financial issues following a pair of bank warnings this week, overcame strength in resource issues. The S&P/TSX composite index <.GSPTSE> was down 5.67 points, at 7,719.09, after rising more than 270 point at the open.

Inflation eases sharply in October

OTTAWA (Reuters) - Consumer prices registered their sharpest decline in nearly 50 years in October, dropping 1 percent from September as gasoline prices plummeted from recent high levels, Statistics Canada said on Friday. As a result, the annual inflation rate in October eased more than expected to 2.6 percent from 3.4 percent in September. Analysts in a Reuters poll had forecast a rate of 3.1 percent.

Sears Canada operating profit and revenue rise

TORONTO (Reuters) - Sears Canada Inc , Canada's second-biggest department store chain, reported higher operating earnings and revenue on Friday. Net profit declined from a year earlier, when earnings were boosted by big one-time gains from the sale of the company's corporate headquarters.

Citigroup shares slide as bank mulls merger and asset sales

NEW YORK (Reuters) - Citigroup Inc shares fell sharply again on Friday as the second-largest U.S. bank by assets mulled a variety of options including a possible merger or asset sales to restore the bank's health and investor confidence, a source said. The stock fell 76 cents, or 16 percent, at $3.95, after rising as high as $5.53 in early trade. Shares remained far below their close last week at $9.52.

Dollar rises as stocks rally lifts commodities

TORONTO (Reuters) - The Canadian dollar rose 0.9 percent against the U.S. dollar on Friday as global equity markets rebounded from the previous day's sharp losses, boosting prices for the commodities Canada exports. Canadian bond prices unwound some recent gains as the rally in stocks cut into bids for relatively stable government debt.

Oil rallies from 3-1/2 year lows

LONDON (Reuters) - Oil rallied from three-and-half-year lows on Friday, spurred partly by gains in global stock markets reflecting hopes that central banks around the world might cut interest rates, including China. Oil has fallen by about $10 this week and by almost $100 from a record high of more than $147 in July, depressed by the global economic downturn and its impact on fuel demand in top energy consumer the United States and other major economies.

Wal-Mart's Scott retiring as CEO, Duke to succeed

NEW YORK (Reuters) - Wal-Mart Stores Inc , the world's largest retailer, said Lee Scott will retire as chief executive early next year and will be succeeded by Mike Duke, who heads its international operations. The retailer also promoted Eduardo Castro-Wright, 53, a rising star who heads its U.S. operation, to vice chairman, effective immediately.

Electronics profits head for 5-year low: report

TORONTO (Reuters) - The weak economy, a slowdown in production growth and declining prices will push profits in Canada's computer and electronics industry to a five-year low in 2009, the Conference Board of Canada said on Friday. Profits are forecast to fall by 22 percent in 2008, to just over C$1.1 billion ($859 million), and will drop another 4.6 percent in 2009, the board said. Although profits will bounce back slightly in 2010, "they will not approach 2007 levels until three years thereafter."

Flaherty presses banks on pension funds

OTTAWA (Reuters) - Finance Minister has given Canadian banks one week to comply with his request they provide seniors with more flexibility when withdrawing pension funds, so they can avoid losses due to the market meltdown. In a letter to federally-regulated banks and other institutions published late Thursday, Flaherty asked them to ensure their clients can make the required minimum withdrawals from their registered retirement income funds (RRIFs) without having to sell assets and therefore take a big loss.

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.

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