News from Reuters

CA-BUSINESS Summary

05/12/08

Global stocks struggle ahead of U.S. jobs data

LONDON (Reuters) - World share prices struggled on Friday, while euro zone government bonds rose as investors tried to position themselves for key jobs data that is expected to paint a stark picture of a fast-deteriorating U.S. economy. Global stocks, as measured by MSCI's all-country index, were down almost half a percent on the day.

Oil steadies below $44

SINGAPORE (Reuters) - Oil was steady below $44 on Friday, near its lowest level in almost four years, with eyes turning to the psychologically important $40 level as a widening economic slowdown gnaws into oil demand. Prices have lost nearly 20 percent from their settlement a week ago, and are on course for their steepest weekly decline since March 2003, following the release of weak U.S. economic data, with lower retail sales and a 26-year high in jobless benefits rolls the latest to add pressure to prices.

BMW sales plunge, Honda quits Formula One

FRANKFURT/TOKYO (Reuters) - Global sales at BMW, the world's top premium carmaker, plunged by a quarter in November, and Honda backed out of Formula One racing on Friday as the economic downturn exacted a mounting toll on automakers. With even well-heeled consumers keeping a tight grip on their wallets, group vehicle sales at BMW fell 25.4 percent to 96,570 units, led down by a 26.2 percent drop at the flagship BMW brand, it said.

Alternative plan to LBO floated for BCE: source

NEW YORK/TORONTO (Reuters) - Some of the private equity buyers of BCE Inc , Canada's biggest telecom company, are floating an alternative deal to the C$34.8 billion ($28.3 billion) leveraged buyout that was put in jeopardy a week ago, a source familiar with the situation said. The plan would involve the buyers -- led by the Ontario Teachers' Pension Plan -- investing C$8 billion to C$10 billion for a stake in the company, which would remain a publicly-listed entity, the source said.

Four Canadian banks report, profit falls at three

TORONTO (Reuters) - Three of four Canadian banks reported lower profits on Thursday, but the results of the big players were either in line with market expectations or with the banks' own warnings in recent weeks. "I would categorize today as a no-big-surprise day, which is a good thing in this environment," said Craig Fehr, a financial services analyst at Edward Jones.

TSX rattled by weak oil, political turmoil

TORONTO (Reuters) - The Toronto Stock Exchange's main index fell to its lowest close in two weeks on Thursday as a slide in oil prices shook the resource-heavy market, while the suspension of Canada's Parliament weighed on sentiment. Oil prices fell more than 6 percent to their lowest level in almost four years, pulling Toronto's heavily weighted energy sector down 7.46 percent.

Toyota opens new Ontario plant, brings 1,200 jobs

TORONTO (Reuters) - Toyota Canada Inc <7203.T> cut the ribbon on a new C$1.1 billion ($859 million) assembly plant in Woodstock, Ontario on Thursday, bringing about 1,200 new jobs to a sector that has been losing jobs rapidly. The plant is assembling the RAV4, a compact sports utility vehicle, and will produce up to 100,000 vehicles a year in Woodstock, a small city of around 36,000 people, known for its tree-lined streets and Victorian homes, about 140 kilometers (88 miles) southwest of Toronto.

Senators grill auto CEOs, GM-Chrysler deal eyed

WASHINGTON (Reuters) - The chief executives of General Motors Corp and Chrysler LLC said they would consider restarting merger talks if needed to win their slice of up to $34 billion in emergency U.S. government aid. "I would be very willing to look at it seriously," GM CEO Rick Wagoner told the Senate Banking Committee on Thursday, adding that merger talks earlier this year were dropped on concerns GM did not have the financing to merge with Chrysler.

Loonie falls as opposition still aims to oust Canada government

TORONTO (Reuters) - The Canadian dollar fell nearly 2 percent in less than 90 minutes on Thursday after leaders of opposition parties said they still aim to oust the country's Conservative government from power. They were responding to a decision by Canada's governor general to allow Parliament to be suspended until January, giving the Conservative government a chance to regroup following a parliamentary crisis.

November job losses expected in Canada

OTTAWA (Reuters) - Canadian job losses likely began in earnest in November as the economy stagnated, following three straight months of surprisingly strong employment growth, analysts said on Thursday. Employers are expected to have shed 25,000 workers in the month, according to the median forecast of analysts in a Reuters poll. They also forecast the unemployment rate would rise to 6.4 percent from 6.2 percent in October, the highest level since September 2006.

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