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CA-BUSINESS Summary

02/12/08

Manulife sells 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 down. 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 said 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 seeks $9 billion line, aims to break even in 2011

DETROIT (Reuters) - Ford Motor Co on Tuesday asked Congress for up to $9 billion in a government credit line to support its restructuring, saying it expects to break even or be profitable in 2011. The news sent shares in Ford, considered to be the strongest of the three Detroit automakers, soaring as much as 13 percent in morning trading. The shares have more than doubled since late November.

British Airways in merger talks with Qantas

LONDON (Reuters) - British Airways said it is in merger talks with Australia's Qantas , signaling further consolidation in an industry desperate to cut costs in the global economic downturn. Shares in British Airways surged as much as 17.5 percent after the airline said it was exploring a potential tie-up with fellow OneWorld alliance member Qantas in which it used to own a 25 percent stake

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.

Barrick Gold looking at M&A, sees cheap assets

TORONTO (Reuters) - Barrick Gold is looking at making acquisitions, but will be cautious in its approach, the company's chief financial officer said on Tuesday. Speaking at an investment conference, CFO Jamie Sokalsky said valuations for both companies and projects have become exceptionally cheap.

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.

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