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CA-BUSINESS Summary

03/12/08

Asian stocks rebound, but confidence lacking

HONG KONG (Reuters) - Asian stocks and oil rebounded on Wednesday from recent sell-offs, but low-risk assets such as U.S. Treasuries also retained their luster despite offering the lowest yields in decades amid worries about the ailing global economy. The euro edged lower ahead of meetings on Thursday by the European Central Bank and the Bank of England, both of which could result in hefty interest rate cuts.

Oil rises more than $1

SINGAPORE (Reuters) - Oil rose toward $48 a barrel on Wednesday, recovering from a tumble of more than $100 off July peaks, but the upside could be limited, with further signs of weakening oil demand expected in upcoming weekly U.S. oil data. Prices have lost more than 13 percent since last week to stand at three-and-a-half-year lows, on a gloomy economic outlook and after OPEC deferred a likely third supply cut to later in December, while showing imperfect compliance with the two cuts it has already agreed on.

Automakers' desperate bailout plea gaining support

DETROIT/WASHINGTON (Reuters) - A top lawmaker predicted Washington would approve a bailout for U.S. automakers after they submitted survival plans, and General Motors Corp and Chrysler LLC said they needed an immediate infusion of cash to avoid failures. U.S. House Speaker Nancy Pelosi, a California Democrat, said Washington had little choice about helping the automakers, who say they support one in 10 American jobs.

RIM cuts Q3 outlook on strong dollar

(Reuters) - Research In Motion Ltd on Tuesday cut its third-quarter outlook below Wall Street expectations, hurt by depreciation of certain foreign currencies relative to the U.S. dollar in the quarter. The maker of BlackBerry phones now expects third-quarter adjusted earnings of 81-83 cents a share, on a revenue of $2.75-$2.78 billion.

Scotiabank's 2009 outlook is below expectations

TORONTO (Reuters) - Bank of Nova Scotia said on Tuesday that quarterly profit fell 67 percent, which was not a surprise since the bank gave the market early warning about writedowns in its Scotia Capital unit. But the bank's outlook for "moderate" growth in 2009 was below some analysts' expectations, and helped send its stock down more than 7 percent on the Toronto Stock Exchange on Tuesday.

TSX takes hit from Manulife and ends lower

TORONTO (Reuters) - The Toronto Stock Exchange's main index ended a see-saw session lower on Tuesday as news that insurer Manulife Financial will issue new stock offset rallying energy shares after talk of a takeover of Nexen Inc . The tug-of-war between the slumping financial shares and rallying energy stocks left the Toronto Stock Exchange bouncing around in a wide range that saw it up as much as 120 points and down as much as 186 points.

Canada November auto sales skid as recession looms

TORONTO (Reuters) - Canadians bought about 10 percent fewer vehicles in November than a year earlier as the economy slowed to the verge of recession, according to industry figures released on Tuesday. Canadian auto sales decreased 10.3 percent year on year to 105,200 vehicles last month, marking a sharp turnaround from the 1.5 percent gain recorded in October.

Nexen shares jump on report Total mulling bid

CALGARY, Alberta (Reuters) - Shares in Nexen Inc rose 9.3 percent on Tuesday after a report said that French oil major Total SA is poised to make a C$19.7 billion takeover offer for Canada's No. 4 independent oil explorer. The Financial Times reported on its website on Tuesday that Total's board of directors was meeting to approve a C$38 per share offer for Nexen.

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.

Magna unit to shut Canada auto-parts plant: report

TORONTO (Reuters) - A subsidiary of Magna International is closing an auto-parts plant in the province of Nova Scotia next year, leading to 260 lost jobs, CBC News reported on Tuesday. The employees were told Tuesday afternoon that a gradual shutdown during 2009 is planned, with the plant closing by the end of that year, CBC News reported on its Web site.

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