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CA-BUSINESS Summary

07/01/09

Europe bucks world stock rally

LONDON (Reuters) - World stocks worked on their 10th consecutive session of gains on Wednesday, but European shares were breaking their winning streak and the dollar's recent drive upwards faltered. Investor sentiment has been boosted both by the promise of a massive U.S. government spending and tax cut plan from President-elect Barack Obama to stimulate the world's largest economy and by cheap share prices stemming from last year's falls.

GM says government loans cover worst scenario: report

(Reuters) - General Motors Corp has adequate government loans pledged to cover the worst-case scenario it outlined in December to Congress and will not need more unless the economy worsens, a Bloomberg report said. "The U.S. Treasury's $13.4 billion bridge loan to GM, coupled with the separate transaction for (lender) GMAC, meets our liquidity needs under the scenarios outlined in our December plan to Congress," GM spokesman Greg Martin told the agency.

Oil falls towards $48

LONDON (Reuters) - Oil fell toward $48 Wednesday after weak U.S. economic data sparked a bout of profit-taking overnight, outweighing escalating tensions in the Middle East and widening supply cuts from Russia's gas row with Ukraine. The market will be watching for weekly inventory data from the U.S. energy department due later Wednesday, which are forecast to show a jump in stockpiles, and U.S. December employment data, to be released Friday.

Alcoa to slash jobs and sell 4 units

NEW YORK (Reuters) - Alcoa Inc said on Tuesday it would slash more than 15,000 jobs, halve capital spending and sell four businesses as it reduces aluminum production in the face of the global economic downturn. The largest U.S. aluminum producer said it imposed a global salary and hiring freeze as it seeks to cope with what Chief Executive Officer Klaus Kleinfeld called "extraordinary times."

Bank of America sells $2.8 billion China bank stake

HONG KONG (Reuters) - Top U.S. lender Bank of America , raising cash to weather a dismal market at home, sold a $2.83 billion chunk of its holding in China Construction Bank <0939.HK> on Wednesday, dragging the Chinese bank's stock 6 percent lower. China's three largest banks attracted big strategic investments from western financial giants at the time of their initial public offerings. Those investors are now under pressure to shed their stakes as the global financial crisis ravages the banking industry, and further sales are expected.

Canadian base metal miners enjoy New Year rally

TORONTO (Reuters) - Several Canadian base metal miners hit multi-month highs on the Toronto Stock Exchange on Tuesday, as stronger prices and improving expectations for steel demand helped revive some hope for a sustained rebound in the hard-hit sector. With copper, zinc, and nickel prices surging ahead of an annual rebalancing by major commodity indexes, companies such as Teck Cominco , Quadra Mining and First Quantum Minerals are boasting gains of as much as 50 percent in the first trading days of the new year.

Navistar to slash more jobs at Ontario truck plant

TORONTO (Reuters) - Navistar International Corp confirmed on Tuesday it will lay off as many as 199 workers at its Chatham, Ontario, truck plant, on top of the 499 recently announced layoffs set for February 2. The company said it notified employees of the new layoffs at the International Truck and Engine Corp plant on Monday.

Dollar gets boost from stronger commodities

TORONTO (Reuters) - The Canadian dollar touched its highest level against the U.S. currency in nearly two months on Tuesday, as stronger commodity prices and hopes for economic stimulus packages by western governments boosted sentiment. Bonds were largely higher across the curve, helped by a rebound in the bigger U.S. market, following a successful auction.

Rogers posts wireless growth, but iPhone, cable weak

TORONTO (Reuters) - Shares of telecom and media group Rogers Communications Inc fell almost 6 percent on Tuesday after the company posted slumping iPhone sales and flat postpaid wireless subscriber growth in the fourth quarter and said its cable results are being hurt by a tough economy. Rogers, which owns Canada's biggest wireless carrier, said it added 199,000 net wireless subscribers in the traditionally strong quarter ended December 31, up from 183,000 a year earlier.

Canada 2009 house sales seen falling, rebounding

TORONTO (Reuters) - Canadian home prices will slip and sales will slow in the first half of this year but may rebound in the second half, Royal LePage Real Estate Services said in its 2009 forecast on Tuesday. Royal LePage, Canada's biggest residential real estate agent, forecasts average house prices will ease 3 percent from last year to C$295,000 ($250,000). It sees the number of homes sold falling 3.5 percent to 416,000.

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