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CA-BUSINESS Summary

01/12/08

Oil falls over $1 after OPEC defers cut

SINGAPORE (Reuters) - Oil fell more than a dollar on Monday, toward $53 a barrel, after producer cartel OPEC decided to delay a decision on a third supply cut to its next meeting later in December as economic woes squeeze oil demand. Gulf producers want to see strict compliance with recent output curbs of 2 million barrels per day (bpd) before considering further cuts when the Organization of the Petroleum Exporting Countries (OPEC) meets in Algeria on December 17.

Global recession pummels Asia factories

BEIJING (Reuters) - New orders at Chinese factories tumbled in November while their U.S. retail customers used deep discounts to lure shoppers at the start of a holiday season overshadowed by fears of global recession. Underlining the China data, South Korea's exports fell by the most in 7 years last month and both Tokyo and Beijing provided stark warnings on the challenges ahead for their economies, the second- and fourth-biggest in the world.

Canada says seeks to avoid U.S. stimulus mistakes

OTTAWA (Reuters) - Canada's minority Conservative government will focus on long-term ways of stimulating the economy rather than repeating the U.S. mistake of sending out one-time tax rebate checks, Finance Minister Jim Flaherty said on Sunday. Flaherty, who announced he would present his next budget on Jan 27, 2009, said that while he preferred permanent stimulus measures such as tax cuts, Ottawa would also have to spend money helping out troubled sectors such as the auto industry.

Uranium readies for revival

OTTAWA (Reuters) - Uranium miners have found themselves with a hearty recipe for powering a stock market revival: rising prices for the nuclear fuel, strong demand, and supply disruptions. The only ingredient missing is investors. The spot price for uranium has surged 25 percent over the past five weeks, a performance unmatched by the stocks of companies in the uranium sector. From a basket of 56 stocks tracked by Haywood Securities, for example, 42 fell over the last week, three were unchanged, and just 11 saw gains.

Stimulus all the rage, bar Germany

PARIS (Reuters) - As recession extends its tentacles across the globe, it is getting hard just to track the hundreds of billions of dollars governments are throwing or promising to throw at the problem. With unemployment surging and the car industry screaming for survival aid, governments in Washington, Beijing, Tokyo and the bulk of Europe appear to agree one thing -- that urgent fiscal stimulus is needed to support demand and limit the damage.

GM board reviews new turnaround plan for bailout

DETROIT (Reuters) - The board of General Motors Corp met on Sunday to review a restructuring plan intended to cut costs and win support for up to $12 billion in emergency funding from the government, a person familiar with the deliberations said. Along with rivals Ford Motor Co and Chrysler LLC, GM is rushing to complete the business plans demanded by Congress as a condition of considering a $25-billion rescue package for the embattled industry.

UAW wants limits on carmakers' executive pay

WASHINGTON (Reuters) - The Big Three U.S. automakers should tell Congress they will limit corporate pay, bonuses and severance packages in return for government loans, the president of the United Auto Workers union said on Sunday. On CNN's "Late Edition," UAW President Ron Gettelfinger said carmakers only need a loan to tide them over a tough period and insisted high union wages were not the key cause of waning sales at General Motors Corp , Ford Motor Co and Chrysler LLC.

BCE seeks huge fee from Teachers if no deal: report

TORONTO (Reuters) - BCE Inc. is demanding that the Ontario Teachers' Pension Fund pay a C$1.2 billion termination fee if the leveraged buyout of the company fails to go through as expected, a newspaper reported on Saturday. Citing people familiar with the situation, the Globe and Mail said BCE is pushing to get Teachers, the lead suitor in the C$34.8 billion ($28.3 billion) buyout deal, to pay the huge fee should the tangled, two-year-old bid for the owner of Bell Canada fall apart before a December 11 deadline.

Flaherty defends plan to end party subsidies

TORONTO (Reuters) - Canadian Finance Minister Jim Flaherty on Friday defended a government proposal to eliminate subsidies to political parties, saying it was wrong to confiscate tax dollars to redistribute to politicians while the country was tightening its belt. In the fall fiscal update presented by Flaherty on Thursday, the Conservative government said it wanted to eliminate the payment of C$1.95 that Ottawa makes each year for every vote a party receives in the last general election. The subsidies cost about $27 million annually.

OPEC defers new oil supply cut as divisions emerge

CAIRO (Reuters) - OPEC on Saturday deferred a decision on a new oil supply cut amid signs that Saudi Arabia and its Gulf allies are demanding tighter adherence to restraints put in place over the past two months. Gulf producers want to see strict compliance with recent output curbs of 2 million barrels a day before considering further reductions when the Organization of the Petroleum Exporting Countries meets in Algeria on December 17.

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