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CA-BUSINESS Summary

13/01/09

World stocks fall on earnings worries

LONDON (Reuters) - Fears of steep losses at U.S. bank Citigroup and Asian industry giants such as Sony pummeled shares on Tuesday and bolstered government debt. The euro slid to a one-month low against the dollar and the yen as the European Central Bank looked set to cut interest rates again this week, while oil continued to drop on fears about reduced energy demand as the world economy shrinks.

Oil drops towards $36 on falling demand expectations

LONDON (Reuters) - Oil fell toward $36 a barrel on Tuesday to its lowest level in three weeks as further signs the world economy was slowing sharply dampened demand expectations. Worsening recessionary signals saw investors flee risky assets such as commodities for U.S. Treasury bonds on Monday, while European shares fell for a fifth session on Tuesday as expectations mounted for poor results in this reporting season.

Sony may post $1.1 billion operating loss

TOKYO (Reuters) - Japan's Sony Corp <6758.T> will likely suffer an annual operating loss of about $1.1 billion, its first such loss in 14 years, due to sluggish sales and a stronger yen, a person with knowledge of the matter said. Shares of Sony tumbled 9 percent, slicing $2 billion off its market value to $22 billion, while rival Toshiba Corp <6502.T> dropped more than 8 percent after Japanese media said it too was headed for a big loss this financial year.

Alcoa reports loss as economy hits demand

NEW YORK (Reuters) - Aluminum producer Alcoa Inc , which is slashing 15,000 jobs, posted a fourth-quarter loss on Monday, as the global economic crisis sent revenue plummeting on lower demand and declining metal prices. Although Wall Street was expecting the loss -- Alcoa's first in six years -- it was bigger than forecast, but revenue was $700 million higher than expected, and the company's stock was little changed after-hours.

Too little, too late for "green" Big 3?

DETROIT (Reuters) - Automakers at the world's premier auto show have pinned their hopes on "green" models but for some companies the immediate future is shaping up as a battle for survival. U.S. auto sales dropped by 18 percent in 2008 to a 16-year low of 13.2 million, pushing financially strapped General Motors Corp and Chrysler to the brink of collapse.

Fertilizer company Mosaic cuts 1,000 Canada workers

TORONTO (Reuters) - North American fertilizer company Mosaic Co is cutting about 1,000 jobs at a pair of potash mines in the Canadian province of Saskatchewan, a company spokesman said on Monday. "The economy is weak," spokesman Brad DeLorey said, adding the U.S.-based company is trying to "match supply with demand." Layoffs are to start in February and March. Mosaic has about 1,500 employees in Saskatchewan.

HudBay says opposes new effort at shareholder vote

TORONTO (Reuters) - HudBay Minerals Inc said on Monday that two shareholders have asked a court to get HudBay to hold a special meeting of shareholders to consider the proposed takeover of Lundin Mining . The base metals mining firm said in a statement that the SRM Global Master Fund Limited Partnership and Corriente Master Fund Limited Partnership made the application to the court.

Bell Aliant to eliminate 500 management jobs

TORONTO (Reuters) - Bell Aliant said on Monday it will cut about 500 management jobs, or about 5 percent of its total work force, to reduce costs and help it make decisions more quickly. The cuts represent about 15 percent of Bell Aliant's management, the regional Canadian telecom group said on Monday.

TSX gets slapped as commodity prices fall hard

TORONTO (Reuters) - Toronto's main stock index fell more than 3 percent on Monday as tumbling commodity prices rattled the resource-heavy index and knocked it to its lowest closing level in two weeks. The market tumbled more than 100 points at the open and was never able to recover as prices for key Canadian exports such as oil and gold were hammered throughout the session.

Yamana to spend up to $350 million in '09

CALGARY, Alberta (Reuters) - Yamana Gold Inc said on Monday it would spend up to $350 million this year and $400 million in 2010 to boost production, while cutting its dividend by half to help fund its expenditures. Yamana said its production is expected to be 1.3 million to 1.4 million gold equivalent ounces in 2009 and 1.4 million to 1.5 million in 2010 from mines now in production.

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