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CA-BUSINESS Summary

25/11/08

Asia shares rally on Citi rescue

HONG KONG (Reuters) - Asian shares rallied and bonds fell after the U.S. government rescued banking giant Citigroup in a bid to prevent further damage to the ailing global financial system. But European shares were set for a tepid start, with Britain's FTSE 100 <.FTSE> seen between down 4 points to up 3 points.

Citigroup gets massive government bailout

NEW YORK (Reuters) - The U.S. rescued Citigroup Inc , agreeing to shoulder most losses on about $306 billion of the bank's risky assets, and inject new capital, bolstering investor hopes that the government will support big banks as the economy sinks into recession. The bailout, announced late Sunday, gives the government the right to buy an equity stake, and marks its latest effort to contain a widening financial crisis that has already brought down Bear Stearns Cos, Lehman Brothers Holdings Inc and Washington Mutual Inc .

China growth seen slowing

BEIJING (Reuters) - China's growth could well slow to its weakest pace in almost two decades next year, the World Bank said, the latest grim prognosis for a global economy buckling despite the concerted efforts of policymakers. What started more than a year ago as a meltdown in the U.S. market for high-risk mortgages has engulfed the world, freezing access to credit, sparking bank collapses and requiring the financial bailout of entire countries.

Google to cut contract workers: report

(Reuters) - Internet search giant Google Inc said it is "significantly" reducing the number of contract workers it uses, but has no plans at this time to lay off employees, the Wall Street Journal said. "We have been thinking for some time, before the acute phase of the economic crisis, about significantly reducing the number of contract workers," spokeswoman Jane Penner told the paper.

TD Bank to sell up to C$1.4 billion in common shares

TORONTO (Reuters) - Canada's two largest banks announced equity financings on Monday that will increase their regulatory capital ratios. After markets closed, Toronto-Dominion Bank said it had sold common shares worth C$1.2 billion in order to reassure investors about its capital strength, after the bank's key capital ratio had fallen to the lowest among its peers.

Canada finmin: may take stimulus steps before March

OTTAWA (Reuters) - Canadian Finance Minister Jim Flaherty said on Monday that he may take fiscal stimulus measures before March 2009. Flaherty made the comment to reporters after giving a speech in Ottawa.

TSX powers higher on oils, financials

TORONTO (Reuters) - The Toronto Stock Exchange's main index gained 3.5 percent on Monday, with resource issues supported by rising oil prices and the U.S. government's rescue plan for banking giant Citigroup lifting market sentiment, particularly in the financial group. The energy sector forged ahead 7.1 percent, supported by the oil price gain. Crude rose more than 8 percent as investors considered the prospect of a further OPEC supply cut and as stock markets rallied on the Citigroup news.

Petro-Canada may look for U.S. refining space

TORONTO (Reuters) - Petro-Canada said on Monday it could invest in U.S. refinery capacity to process some of the bitumen to be produced at its Fort Hills oil sands operation after it canceled plans to build an upgrader to shave part of the project's C$21 billion pricetag. Chief Executive Ron Brenneman also said the company has no plans to increase its 60 percent stake in the project.

HP profit growth driven by EDS, notebook PC sales

SAN FRANCISCO (Reuters) - Hewlett-Packard Co posted a 21 percent rise in quarterly sales of notebook computers, and a near doubling in revenue from technology services thanks to its acquisition of Electronic Data Systems. The gains more than offset modest drops in HP's printers and servers businesses, helping overall revenue rise 19 percent and net profit increase 4 percent in its fiscal fourth quarter ended October 31.

Global regulators focus on abusive short selling

WASHINGTON (Reuters) - Global securities regulators launched three task forces to study abusive short selling, unregulated financial products and unregulated financial entities such as hedge funds, the U.S. Securities and Exchange Commission said on Monday. The working groups were established amid volatile market conditions and designed to support work of the world's 20 largest economies, which have already agreed to step up oversight of the troubled financial system.

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