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CA-BUSINESS Summary

09/01/09

Canada economy sheds more jobs in December

OTTAWA (Reuters) - Canadian employers cut more jobs than expected in December for the second straight month and the unemployment rate jumped to its highest since January 2006 in a sign that the economy has likely slipped into a recession. Statistics Canada said 70,700 full-time workers were taken off payrolls in the month, partially offset by a gain of 36,200 part-time workers for a net employment loss of 34,400.

Global investors eye U.S. jobs data

LONDON (Reuters) - Equity markets traded slightly lower and the dollar edged up against a basket of major currencies on Friday as investors awaited key U.S. jobs data for the latest reading on the stricken U.S. economy. Analysts predict the world's largest economy probably shed more than half a million jobs last month, bringing job losses in 2008 to a post-war record.

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 slips towards $41 before jobs data

LONDON (Reuters) - Oil prices slipped toward $41 a barrel Friday as economic gloom deepened ahead of data expected to show a big jump in U.S. unemployment. Non-farm payrolls figures, due at 1330 GMT (8:30 a.m. EST), are likely to show more than half a million Americans lost their jobs in December, a Reuters poll showed, the highest monthly job losses in 34 years.

Ssangyong seeks court help, Ford downbeat

TOKYO/SEOUL (Reuters) - South Korean SUV maker Ssangyong filed for bankruptcy protection on Friday while Hyundai Motor Co, South Korea's top carmaker, said it would cut output as the financial crisis pounds the global auto industry. Credit ratings agency Moody's put Honda Motor Co Ltd on review for a possible downgrade and Ford Motor Co CEO Alan Mulally said there was little prospect of a turnaround any time soon.

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.

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