News from Reuters

CA-BUSINESS Summary

21/11/08

Hundreds wait at Verizon stores for BlackBerry Storm

NEW YORK (Reuters) - Hundreds of people lined up at Verizon Wireless stores on Friday to buy the BlackBerry Storm, the first touch-screen phone from Research In Motion that aims to compete with Apple's iPhone. More than 200 people had waited at a Verizon store in mid-town Manhattan early in the morning, many of whom were turned away after it ran out of the new phones less than an hour after opening at 8 a.m. The angry customers caused a ruckus and police came to restore order.

GM cutting production amid slow demand

DETROIT (Reuters) - General Motors Corp said on Friday it plans additional temporary plant shutdowns in the next two months in response to deteriorating market demand. The latest production cuts come at a time when GM, Ford Motor Co and Chrysler LLC are seeking a government bailout to survive a severe downturn in demand that has forced most automakers around the world to cut output.

Car dealers pitch for auto sector aid

OTTAWA (Reuters) - Car dealers are heading for near-record sales this year but asked the federal government on Friday to help auto manufacturers and to make it easier for dealerships to get financing. The Canadian Automobile Dealers Association told a news conference that their 3,500 dealers employ 140,000 people and they would bear the brunt of the economic impact if the big manufacturers were not provided bridge financing.

TSX bounces higher in volatile session

TORONTO (Reuters) - The Toronto Stock Exchange's main index bounced back into positive territory late Friday morning as financial and resource issues played tug-of-war in a highly volatile market. The TSX opened strongly with an early gain of more than 4.6, then tumbled into negative territory as weak financial issues dragged the market lower after its opening surge.

Oil rallies from 3-1/2-year low

NEW YORK (Reuters) - Oil prices steadied on Friday, after falling more than 7 percent the day before, as stock markets recovered from early lows caused by continuing economic gloom. U.S. crude fell 13 cents to $49.29 a barrel at 12:08 p.m. EST, after earlier hitting $48.25, its lowest level in three and a half years. London Brent crude gained 53 cents to $48.61 a barrel.

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 drop as CEO plans to keep Smith Barney

NEW YORK (Reuters) - Citigroup Inc shares tumbled for a fifth straight day, as Chief Executive Vikram Pandit tried to downplay speculation the banking giant might sell major businesses to restore its health and investor confidence. Pandit told employees on Friday that Citigroup, the second-largest U.S. bank by assets, does not want to change its business model and plans to keep its Smith Barney brokerage, according to two people who heard him.

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.

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."

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