News from Reuters

CA-BUSINESS Summary

04/12/08

CIBC profit falls 51 percent on securities losses

TORONTO (Reuters) - Canadian Imperial Bank of Commerce said fourth-quarter profit fell 51 percent due to a variety of securities write-downs and mark-to-market losses, but tax benefits helped cushion the blow. CIBC, the country's fifth-largest bank, said on Thursday that net income was C$436 million ($346 million), or C$1.06 a share, in the three months ended October 31.

TD Bank profit falls 7 percent on trading losses

TORONTO (Reuters) - Toronto-Dominion Bank said quarterly profit fell 7 percent because of previously announced write-downs for credit trading losses in illiquid debt markets. As expected, Canada's second-largest bank said on Thursday that net income was C$1.01 billion ($798 million), or C$1.22 a share, in the fiscal fourth quarter ended October 31. That includes various unusual items, including a litigation reserve gain of C$323 million related to Enron.

TSX rallies as banks rise on bargain-hunting

TORONTO (Reuters) - Toronto's main stock index rose on Thursday morning after three days of losses as investors looked past weak bank earnings in anticipation of improved performance by the financial sector in the coming year. After beginning the day in negative territory, the S&P/TSX composite index <.GSPTSE> quickly gained steam and at 10:10 a.m. was up 136.79 points, or 1.65 percent, at 8,433.75, with all of its 10 main sectors higher.

GM pledges faster cost-cuts in return for bailout

WASHINGTON (Reuters) - General Motors Corp pledged to Congress on Thursday that it would accelerate labor and other cost cuts and try to reduce its mountainous debt in return for a government bailout. "It's a blueprint for creating a new General Motors," Chief Executive Rick Wagoner said in prepared testimony for a U.S. Senate Banking Committee hearing. GM is asking the federal government for $18 billion in loans, including $3 billion by the end of December to ensure its survival.

Europeans make big rate cuts to fight recession

LONDON (Reuters) - The European Central Bank, Britain and Sweden all made big cuts in interest rates on Thursday to shore up economies across Europe in the face of ever-bleaker financial news. The cuts were applauded by many analysts but market reaction indicated that even more sweeping moves may be needed to halt the decline.

Canada Oct building permits fall more than expected

OTTAWA (Reuters) - The value of Canadian building permits fell by a steeper-than-expected 15.7 percent in October, an early indicator of a slower fourth quarter for the economy, according to Statistics Canada data on Thursday. The decline came off September's robust 12.5 percent increase, though that was marked down from an early estimate of 13.4 percent. A Reuters survey of analysts had predicted only a 6.8 percent decline in October.

Oil down to $46 after nearly four-year low

LONDON (Reuters) - Oil pared some losses on Thursday after an early fall below $46 a barrel to its lowest price in nearly four years, in response to the bleak outlook for the world economy and oil demand. Oil prices have dropped more than $100 a barrel from an all-time high of $147.27 hit in July.

Bombardier earnings beat estimates

TORONTO (Reuters) - Bombardier said on Thursday that quarterly earnings more than doubled, helped by an 8 percent rise in revenue, but new orders for both airplanes and trains fell as tough economic conditions weighed on demand. Net income rose to $245 million, or 14 cents per share, in the third quarter ended on October 31 from $91 million, or 5 cents per share, a year earlier.

Blackmont upgrades Certicom to speculative buy

(Reuters) - Blackmont Capital upgraded Certicom Corp to "speculative buy" from "hold," saying it expects more bidders to emerge for the company as Research In Motion's offer gives limited value to the wireless encryption software firm's patent portfolio. "There is a long list of global companies that would be interested in Certicom including IBM , EMC Corp , Microsoft Corp , Qualcomm Inc , and even Sony Corp <6758.T>," the brokerage said.

Loonie eases as oil pressures, bonds up

TORONTO (Reuters) - The Canadian dollar slipped against the U.S. dollar on Thursday in a backdrop of weakening oil prices, political uncertainty and risk aversion. Rate cuts by central banks around the world and fears of recession put new life into the allure of safe-haven government bonds.

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