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CA-BUSINESS Summary

26/12/08

GM shares and GMAC bonds jump on bank holding status

DETROIT/NEW YORK (Reuters) - Shares of General Motors Corp and bonds of GMAC LLC jumped on Friday after the auto finance company won U.S. approval to become a bank holding company. The Federal Reserve approved GMAC's status as a bank on Wednesday, giving the automaker's finance affiliate access to government lending programs, which may help GMAC avoid bankruptcy and continue financing of dealer and consumer loans for GM vehicles.

Wall St edges up on GMAC

NEW YORK (Reuters) - U.S. stocks inched higher in thin volume on Friday as energy shares rose alongside oil and General Motors climbed after its financing arm qualified for government funds, helping it stave off potential bankruptcy. The Federal Reserve paved the way for GMAC LLC to become a bank holding company on Wednesday, giving it access to government lending programs.

Canadian economy shrinks, on track for recession

OTTAWA (Reuters) - Canada's economy shrank in October on declines in wholesale trade and manufacturing, paving the way for a recession that has been widely predicted by analysts and government officials. Statistics Canada said on Wednesday that the economy shrank by 0.1 percent in October from September, less than the 0.3 percent fall predicted by market analysts.

GM sues bankrupt supplier Cadence over parts

NEW YORK (Reuters) - General Motors Corp has filed a lawsuit against a bankrupt auto-parts supplier, saying it is holding necessary equipment "hostage" which could potentially interrupt the launch of its new Chevrolet Camaro car. In a lawsuit filed on Wednesday in U.S. Bankruptcy Court in Delaware, General Motors asked the court to allow it access to facilities of the supplier, Cadence Innovation, so it could obtain necessary tooling and parts for its plants.

Oil above $37 on UAE supply cut and thin trade

NEW YORK (Reuters) - Oil climbed in thin post-holiday trade on Friday after the United Arab Emirates said they will deepen supply cuts in line with OPEC's biggest-ever output cut announced last week and the dollar weakened against the euro. U.S. crude settled at $37.71 a barrel, up $2.36. London Brent rose $1.76 to settle at $38.37.

Japan industrial output logs record fall

TOKYO (Reuters) - Export-reliant Asian economies showed more signs of weakness on Friday, with Japan's industrial output diving at a record pace and South Korea warning it faces an "unprecedented crisis" as global demand wilts. Even the once unstoppable Chinese economy is feeling the strain, with companies recording a sharp slowdown in profit growth in the first 11 months of the year.

Toyota founding family scion dodges succession issue

TOKYO (Reuters) - Toyota Motor Corp <7203.T> Executive Vice President Akio Toyoda declined on Thursday to discuss the possibility of his taking over as president after media reports he could fill the post as early as April. "Today, these two cars are the stars," Toyoda, a grandson of company founder Kiichiro Toyoda, told a news conference to unveil two compact cars under the Toyota and Daihatsu Motor Co <7262.T> brands, when asked point-blank about the reports.

Air Canada bolsters cash with $195 mln financing

CALGARY, Alberta (Reuters) - Air Canada , the country's biggest airline, said on Wednesday it has secured up to $195 million in financing from General Electric Capital Corp , bolstering the carrier's cash position. The airline said the agreement sees the airline getting a $155 million secured loan that is due in 2014. The cash will be paid out in two tranches, with the first, providing $80 million and due in 2014, secured on Wednesday. The second tranche is expected to close by the end of January.

RIM sues Motorola for blocking job offers

BOSTON (Reuters) - Research In Motion Ltd is suing Motorola Inc , alleging that the mobile phone company improperly blocked the BlackBerry maker from hiring current and laid-off Motorola employees. The suit, filed in state court in Chicago on Tuesday, comes three months after Motorola alleged that RIM violated an agreement reached in February that the two companies would not solicit each other's employees.

Dollar rises in illiquid, shortened session

TORONTO (Reuters) - The Canadian dollar strengthened versus the U.S. currency on Wednesday, as thin market volumes forced the currency to ride the wave of corporate buyers and fund managers readjusting portfolios ahead of the year end. Bonds ended little changed in a holiday-shortened session, outperforming U.S. treasuries.

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