News from Reuters

CA-BUSINESS Summary

04/01/09

Oil surges over 3 percent on Gaza, Russian gas row

SINGAPORE (Reuters) - Oil jumped more than 3 percent on Monday after an Iranian military commander reportedly called for an oil boycott over Israel's ground offensive in the Gaza Strip and on concerns over the deepening Russian gas supply row. Wall Street's strong start to the new year on Friday and mounting evidence of OPEC's compliance with deep production cuts also helped oil to a third day of strong gains, driving prices to their highest in over two weeks.

Yellen: Pull out all stops for grim economy

SAN FRANCISCO (Reuters) - The U.S. economy faces a potentially long period of weak growth and a rising risk of deflation, making it worth "pulling out all the stops" with a big fiscal spending program, Janet Yellen, president of the San Francisco Federal Reserve Bank, said on Sunday. "The financial and economic firestorm we face today poses a serious risk of an extended period of stagnation -- a very grim outcome," Yellen said on a panel discussion at the American Economics Association's annual meeting in San Francisco.

Chrysler gets $4 billion U.S. government loan

NEW YORK (Reuters) - Chrysler LLC on Friday received an initial $4 billion emergency loan from the U.S. government, two days after the government completed a parallel payout to its larger rival General Motors Corp. "This initial loan will allow the company to continue an orderly restructuring," Chrysler Chief Executive Bob Nardelli said in a statement.

Rogers seen as wireless growth winner: UBS

OTTAWA (Reuters) - Rogers Communications Inc , which owns Canada's biggest wireless carrier, is predicted to be a winner from "resilient" subscriber growth in the fourth quarter, UBS said in a note on Friday. Analyst Jeffrey Fan forecasts that Rogers gained postpaid market share during the period, partly on big demand for the Apple iPhone.

TSX gains 2 percent as oil leads the way

TORONTO (Reuters) - Toronto's main stock index soared more than 2 percent on Friday afternoon as strength in the energy sector, supported by the rising price of crude, led the way higher. The S&P/TSX composite index <.GSPTSE> was up 201.30 points, or 2.24 percent, at 9,189.00. Nine of the index's 10 main groups were higher, with consumer staples the lone group lower.

Consumer confidence slumps in late 2008

OTTAWA (Reuters) - Consumer confidence in Canada slumped between August and December, but pessimism over the economy was countered by relatively positive personal sentiment, according to a Harris/Decima Investors Group survey released on Friday. Pessimism about the economic outlook for the coming year increased, with 64 percent of respondents expecting bad times, double the rate in August. Canadian consumer confidence levels now match U.S. levels, as measured by a University of Michigan survey.

Ford sees sharp drop in U.S. sales

DEARBORN, Mich (Reuters) - Ford Motor Co expects industry-wide December U.S. auto sales to drop by some 35 percent from a year earlier with no sign of a turnaround in the first quarter of this year. Ford, the No. 2 U.S. automaker, expects that full-year sales of light vehicles in the world's largest market will drop to near 13.2 million for 2008, down from near 16.2 million in 2007, Ford's chief sales analyst George Pipas said on Friday.

GM, GMAC loosen finance pact after lender bailout

NEW YORK (Reuters) - GMAC LLC on Friday said that as part of its $6 billion federal bailout and decision to become a bank, it will no longer have the exclusive right to provide low-interest loans to borrowers who buy General Motors Corp cars and trucks. According to a U.S. Securities and Exchange Commission filing, GM may now offer incentives such as low-interest loans through other lenders, subject to restrictions. Some of these restrictions will be lifted in December 2010, and the rest in December 2013, the filing said.

Private equity group buying IndyMac assets

WASHINGTON/NEW YORK (Reuters) - The assets of failed U.S. mortgage lender IndyMac are being bought by a group of private equity and hedge fund firms, including Dune Capital Management and J.C. Flowers & Co, which are putting up $1.3 billion in cash. The Federal Deposit Insurance Corp, which has run IndyMac since its failure on July 11, valued the sale to the IMB HoldCo consortium at $13.9 billion.

High River seeks cash to cover costs, pay debt

OTTAWA (Reuters) - High River Gold said on Friday it is trying to secure additional funds to meet its financial obligations as cash flow at the Canadian junior miner has been weakened by operational problems. The cash crunch comes after Severstal Resources , Russia's largest steelmaker, spent $45 million to take a 50.1 percent controlling stake in the miner in late November.

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