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CA-BUSINESS Summary

09/01/09

Asia stocks slip in long wait for U.S. jobs data

HONG KONG (Reuters) - Asian stocks edged down and the U.S. dollar drifted higher on Friday, as investors braced for the December U.S. payrolls data, expected to show sharp job losses and dash hopes for a speedy recovery this year. Major European stock markets were expected to open as much as 1 percent higher, according to financial bookmakers, after Citigroup agreed to support legislation that would let troubled borrowers save their homes through bankruptcy.

Flaherty sees "substantial" deficit

WHITBY, Ontario (Reuters) - Canada will run a "substantial" budget deficit in the next fiscal year as it enacts stimulus measures to help shelter the economy from the effects of the global economic downturn, Finance Minister Jim Flaherty said on Thursday. Flaherty said it was going to be a difficult year globally and that Canada would not escape unharmed as its biggest trading partner, the United States, was in a "serious recession."

Oil above $42 on Saudi cuts

SINGAPORE (Reuters) - Oil rebounded above $42 on Friday on signs that Saudi Arabia would further cut supplies next month, but gains were capped by an impending resolution to the Russia-Ukraine gas spat that could allow supplies to resume. Also weighing on prices is the worry that Friday's U.S. December non-farm payrolls number could be even worse than the half a million job losses predicted in a Reuters poll, which would be the highest monthly job losses in 34 years.

Renault clings to market share as sales drop

PARIS (Reuters) - French carmaker Renault on Friday posted a 4.2 percent drop in 2008 sales in a world market that fell 4.8 percent as the global financial and economic crisis hit vehicle sales. Sales of Renault brand vehicles fell 5.4 percent while Dacia brand sales rose 11.7 percent.

Bank of Canada hints at more rate cuts to come

TORONTO (Reuters) - The Bank of Canada hinted on Thursday that it would continue to lower interest rates this year but gave no indication of how deep the cuts would be as the global recession hits the Canadian economy. Deputy Governor Pierre Duguay said the bank continued to monitor developments in world markets to decide its next moves, amid market expectations of a rate cut on January 20.

Palm's new phone and operating system ignite shares

LAS VEGAS (Reuters) - Palm Inc overhauled its mobile operating system and introduced a new touch-screen phone, sending its shares soaring 35 percent as investors hoped the moves can help win back customers from rivals such as Apple Inc . The new products, which impressed analysts at the Consumer Electronics Show in Las Vegas on Thursday, were developed under the watch of former Apple executive Jon Rubenstein, who helped create the iPod and who was brought to Palm by its private equity shareholder, Elevation Partners.

Manulife knocks down report of accounting probe

TORONTO (Reuters) - Canadian insurance giant Manulife Financial forcefully rejected on Thursday a recent news report that U.S. state regulators were investigating its accounting practices. The company said in a press release that it has not been advised by any regulators -- and has no reason to believe -- that any of its accounting practices are being investigated.

Lehman deal on private equity close: source

NEW YORK (Reuters) - Lehman Brothers Holdings Inc has reached an agreement in principle to sell its merchant banking business, made up of two private equity funds, to management of the funds, a source familiar with the situation said on Thursday. The business to be spun out would also take in new investment from South African billionaire Johann Rupert, the source said. Lehman's bankruptcy estate will retain a substantial interest in the funds, the source said.

TSX closes up 1.1 percent as golds shine

TORONTO (Reuters) - Toronto's main stock index finished higher in a late-session burst on Thursday with the materials group boosted by strength in gold-mining issues as bullion prices rose. Financial and energy stocks were also modestly higher, helping to keep the overall index in positive territory. They started the day lower, contributing to the benchmark's sharp early drop.

Ontario Teachers' pension fund warns on options repricing

TORONTO (Reuters) - One of Canada's largest pension funds warned on Thursday that it did not want to see companies using the global stock market selloff as an excuse to reprice options it uses to pay executives. The Ontario Teachers' Pension Plan urged company boards and committees not to alter stock options or other equity-based compensation plans because of sagging markets.

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