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CA-BUSINESS Summary

01/12/08

Canada's economy rebounds, but recession seen

OTTAWA (Reuters) - Canada's economy grew at a faster clip than expected in the third quarter, just before the global financial crisis intensified, as a rebound in goods-producing industries offset weak exports and consumer spending. Statistics Canada said on Monday Canada's gross domestic product expanded 1.3 percent on an annualized basis in the third quarter, beating the market forecast of 1.1 percent growth, after stagnating in the first half of the year.

TSX plunges at open on weak commodities

TORONTO (Reuters) - The Toronto Stock Exchange's main index tumbled at the open on Monday after a six-day streak in positive territory as heavily-weighted resource stocks dropped on weakness in commodity prices. The S&P/TSX composite index <.GSPTSE> was down 506.16 points, or 5.46 percent, at 8,764.46.

World stocks fall after grim data

LONDON (Reuters) - World stocks ended six consecutive days of gains on Monday and oil prices tumbled, boosting flows into the low-yielding yen as data showing slumping manufacturing activity in China and Europe fanned concerns over the economy. U.S. Treasury prices rose across the board, driving the benchmark 10-year yield to a fresh five-decade low as investors flocked to safe and liquid government bonds.

Oil falls below $52 after OPEC defers output cut

LONDON (Reuters) - Oil fell more than $3 to below $52 a barrel on Monday after OPEC decided to wait until mid-December to make another cut in output to try to defend sagging prices. U.S. light crude for January delivery was down $3.14 at $51.29 a barrel by 8:16 a.m. EST.

Slump hits world industry

LONDON/BEIJING (Reuters) - European and Chinese industry activity slumped in November, Japanese officials said their economy was slowing rapidly and euro zone finance ministers gathered on Monday to discuss plans to curb recession. The Bank of Japan called an emergency meeting for Tuesday to find ways to help corporate finance. BOJ Governor Masaaki Shirakawa warned access to funding was becoming increasingly tough for Japanese firms, to an extent comparable with a debilitating credit crunch a decade ago.

Ryanair makes new, half-price bid for Aer Lingus

DUBLIN (Reuters) - Ryanair revived its tense courtship of Irish rival Aer Lingus on Monday, bidding 750 million euros ($970 million) or just half of what it offered two years ago in an approach thwarted by European regulators. The European Commission rejected Ryanair's 2006 offer on the grounds it would create a near-monopoly in European flights out of Dublin.

Ottawa 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.

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