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CA-BUSINESS Summary

02/12/08

Manulife issues C$2.1 billion in shares, sees Q4 loss

TORONTO (Reuters) - Manulife Financial Corp said on Tuesday it expects to report a quarterly loss of C$1.5 billion ($1.2 billion) due to falling markets, and plans to raise C$2.1 billion by issuing common stock, sending its share price tumbling. The new equity issue comes just weeks after the company said a C$3 billion bank loan would shore up its capital position but it is now reducing the size of that loan facility.

TSX lower as Manulife weighs on financials

TORONTO (Reuters) - The Toronto Stock Exchange's main index was lower in choppy activity on Tuesday morning due to weakness in financial shares, which dropped after Manulife Financial Corp warned it would report a quarterly loss and said it will issue more than C$2 billion in new stock. Manulife, which dropped 5.1 percent to C$19.42, was the most heavily-traded stock and helped to pull the index down from an opening gain. Manulife said it would report a fourth-quarter loss of C$1.5 billion and issue C$2.125 billion in common equity to bolster its capital position.

Ford expects to break even in 2011

DETROIT (Reuters) - Ford Motor Co said on Tuesday it expects to break even or be profitable in 2011 and seeks access to up to $9 billion of government bridge loans to support its restructuring. The news sent Ford's shares soaring about 13 percent in morning trading.

British Airways in merger talks with Qantas

LONDON (Reuters) - British Airways is in merger talks with Australia's Qantas , it said on Tuesday, adding to various attempts at consolidation in an industry desperate to cut costs in the global economic downturn. Shares in British Airways, which had been up 5.1 percent ahead of the announcement, extended their gains to trade as much as 17.5 percent higher at a two-month high of 164 pence.

Rogers Communications founder Ted Rogers dies

TORONTO (Reuters) - Ted Rogers, who transformed a single FM radio station into a North American broadcasting, publishing and wireless telecommunications conglomerate, has died, Rogers Communications said on Tuesday. He was 75. The company said it planned to form a special committee to select the next chief executive and would consider internal and external candidates.

Oil retreats below $49 as brief rally fades

LONDON (Reuters) - Oil fell below $49 a barrel on Tuesday, after reversing early losses in response to a rally in U.S. and European shares. It had earlier fallen to a new 3-1/2-year low below $48, weighed down by gloom over the ailing world economy and its impact on fuel demand.

Loonie gains but under pressure

TORONTO (Reuters) - The Canadian dollar recovered some ground versus the U.S. dollar on Tuesday but remained range-bound and at risk of pressure from falling oil prices and political uncertainty in Canada. Canadian bond prices fell as stock markets rallied, reversing their direction of Monday, when investors parked their cash in safe-haven government debt in response to a steep drop in the equity markets.

U.S. automakers seek plan as Europe looks to bolster banks

NEW YORK/BRUSSELS (Reuters) - U.S. automakers rushed to submit restructuring plans to secure government aid on Tuesday while European ministers and Japan took steps to pump credit into the economy. Markets were mixed, with U.S. stocks rising as much as 2 percent in the wake of Monday's stunning losses. European shares were in and out of positive territory and Japan's stock market tumbled.

Nokia takes on rivals with N97 touch-screen phone

BARCELONA (Reuters) - Nokia launched a flagship phone to update its aging high-end offering, but analysts said the device would not be enough on its own to help the world's top mobile phone maker recover lost market share. Nokia continues to lead the global market for smartphones -- handsets with computer-like features such as email -- but it has lost significant share to Apple's iPhone and RIM's Blackberry, worrying investors and analysts as this is expected to weigh on the Finnish group's profit margins.

Boeing engineers approve work contract

NEW YORK (Reuters) - Boeing Co's second-largest union voted on Monday to approve the company's four-year contract offer, avoiding a second damaging strike at the plane maker's Seattle-area plants. A majority of the more than 20,000 members of the Society of Professional Engineering Employees in Aerospace -- the union representing white-collar engineers and technicians -- voted in favor of the contract.

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