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CA-BUSINESS Summary

02/01/09

Asian stocks gain on 2009 hopes

HONG KONG (Reuters) - Asian shares rallied on Friday, starting the new year on hopes the worst of the global crisis may be over after a brutal 2008, while safe-havens such as U.S. Treasuries fell as investors showed signs of taking on risk. Still, data on Friday signaled a tough road ahead for large parts of the world given that major economies from the United States to Japan are stuck in recession after experiencing the worst financial crisis in generations.

Oil tumbles 8 percent after late surge capped dismal '08

SINGAPORE (Reuters) - Oil fell as much as 8 percent on Friday, kicking off 2009 on a weak note as traders bet a late-day rally that drove up prices 14 percent on Wednesday was overdone. U.S. light, sweet crude fell $2.94 to $41.66 a barrel by 2:52 a.m. EST after earlier sliding by as much as $3.52, or almost 8 percent, reversing a part of Wednesday's $5.57 a barrel gains. Oil tumbled 54 percent in all last year.

Factories slash output and jobs in big emerging markets

BEIJING (Reuters) - Factories in China, India and Russia slashed output and jobs at a record pace in December in another sign the world's largest emerging markets were wilting under the recession that has gripped most industrialized nations. Factory activity surveys in the United States and Europe on Friday are expected to show steeper contractions in December, as demand collapses at home and crushes growth in many of the developing nations that rely on Western consumption.

After worst year ever, commodities may lag recovery

SINGAPORE (Reuters) - Commodities, until six months ago the darling of investors and an out-performing asset class, sealed their worst year on record with accelerating losses in the fourth quarter of the year, data showed on Thursday. Industrial metals, crude oil and even grains took it on the chin as the world fell into recession and investors sold anything liquid or risky to cover deepening losses elsewhere or sock away cash for a brighter day, wiping out six years of nearly unbroken gains in the space of months.

Nokia CEO to favor profit over sales targets: report

HELSINKI (Reuters) - Nokia will focus on profit development amid a falling cell phone market in which many competitors are cutting prices, Chief Executive Olli-Pekka Kallasvuo told the Financial Times. "We will continue to combine market share and margins in the right way in order to maximize the bottom line," Kallasvuo was quoted as saying in an interview. This in stark contrast to some of its smaller rivals, like LG Electronics <066570.KS>, who have said they will do anything to reach their sales targets.

HudBay calls meeting to vote on board ouster

OTTAWA (Reuters) - HudBay Minerals Inc said on Wednesday it will hold a special meeting of shareholders on March 31 to vote on a proposal to remove its current board of directors and elect a new slate. HudBay, whose planned purchase of Lundin Mining has come under fire from some investors, did not say who requested the meeting, but said they had not yet proposed an alternative board.

GM gets $4 billion rescue loan, Chrysler on hold

DETROIT (Reuters) - The U.S. government on Wednesday paid out the first $4 billion in emergency loans to support General Motors Corp but a parallel rescue payment for Chrysler LLC was on hold until the new year. Chrysler said it remained in talks with the U.S. Treasury to finalize its own $4 billion loan agreement and expected to receive its share of the funding soon.

GM, GMAC ease lending rules to entice car buyers

NEW YORK/DETROIT (Reuters) - General Motors Corp and its GMAC funding affiliate launched programs on Tuesday to lure U.S. car and truck buyers back into showrooms, as the nation's largest automaker tries to revive its sagging fortunes. GMAC modified its credit criteria so that it could lend to a wider range of potential customers, two-and-a-half months after significantly curbing lending.

Air Canada secures another $100 million of financing

CALGARY, Alberta (Reuters) - Air Canada said on Wednesday it won a C$100 million ($82 million) credit facility from Canadian Imperial Bank of Commerce in its fourth arrangement for badly needed financing this month. Air Canada, the country's biggest airline, said it has already drawn C$50 million from the new one-year secured revolving credit facility as it seeks to shore up its cash position.

Toronto index ends dismal '08 with 3rd gain in row

CALGARY, Alberta (Reuters) - Toronto's main stock index jumped nearly 2 percent on Wednesday to end the worst year for Canadian stocks since the Great Depression on a positive note. The S&P/TSX composite index <.GSPTSE> unofficially closed up 150.51 points, or 1.7 percent, at 8,981.23 in a third-straight session of triple-digit gains.

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