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CA-BUSINESS Summary

05/12/08

November job losses biggest in 26 years

OTTAWA (Reuters) - Canada registered 70,600 job losses in November, the most in any month since June 1982, fueling expectations of a big interest rate cut next week and likely adding spark to a political crisis in Ottawa. Statistics Canada said on Friday the biggest job losses were in Ontario, the manufacturing heartland and home to the country's auto industry, where the global economic downturn has forced layoffs.

Royal Bank of Canada profit drops 15 percent

TORONTO (Reuters) - Royal Bank of Canada said on Friday quarterly profit fell 15 percent as higher loan loss provisions and previously announced securities losses pushed down results. RBC, which warned of a 15 percent profit decline on November 24, reported net income of C$1.12 billion ($868.3 million), or 81 Canadian cents a share, in its fiscal fourth quarter, which ended October 31.

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.

Loonie falls after weak jobs data

LONDON (Reuters) - The Canadian dollar fell against the U.S. dollar on Friday after surprisingly weak Canadian jobs data added to concerns that the nation's economy is weakening, and fueled expectations for a big interest rate cut next week. The Canadian dollar fell against the U.S. currency, which rose more than half a percent to a session high of C$1.2880. Before the announcement the pair traded at C$1.2835.

Oil steadies around $44 ahead of jobs data

LONDON (Reuters) - Oil steadied around $44 on Friday, not far off its lowest level in almost four years, as financial markets awaited U.S. jobs data for clues to the state of demand in the world's biggest oil consumer. U.S. non-farm payrolls data was due at 1330 GMT (8:30 a.m. EST) and expected to show an increase of more than 300,000 in unemployment claims in November as weakening consumer and business demand prompted companies to cut jobs to reduce costs.

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.

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.

GM-Chrysler deal eyed as auto execs get grilling

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.

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