News from Reuters

CA-BUSINESS Summary

07/01/09

TSX may open higher as oil rallies

TORONTO (Reuters) - Toronto's main stock index may open higher on Wednesday and extend its winning streak to a seventh session as the resource-heavy index could receive another boost from higher oil prices. The price of oil neared $49 a barrel, comfortably off last month's low of $32.40, helped in part by escalation of the Ukraine-Russia price dispute that has choked off gas supplies.

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 climbs towards $49

LONDON (Reuters) - Oil climbed toward $49 a barrel on Wednesday, drawing support from cold weather and an escalation in the Ukraine-Russia dispute that has choked off natural gas supplies and increased demand for oil products. Russian gas supplies to Europe through Ukraine shut down completely on Wednesday, leaving growing numbers of European Union member states without Russian fuel in freezing mid-winter temperatures.

Europe bucks global 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 Wall Street looked set for a poor start. The dollar's recent drive upwards faltered.

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 China bank stake

HONG KONG (Reuters) - Top U.S. lender Bank of America raised $2.83 billion from selling part of its holding in China Construction Bank <0939.HK> and Hong Kong's richest tycoon followed by selling a $500 million stake in rival Bank of China <3988.HK>. Shares in China's big banks skidded on Wednesday after Bank of America's early-morning sale, with investors expecting further sales in the face of slowing earnings growth at mainland lenders and the lapse of lock-up provisions on stakeholdings.

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.

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