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CA-BUSINESS Summary

13/01/09

TSX shoots higher after string of selloffs

TORONTO (Reuters) - Toronto's main stock index shot higher on Tuesday in a broad rally with investors returning to beaten down equities after a string of selloffs had left the TSX at its lowest level in two weeks. The heavyweight materials sector, which had spearheaded the market's steep slide in the previous session, rebounded to lead Tuesday's rally. The energy group also recouped recent losses.

November trade surplus hits 11-year low on oil

OTTAWA (Reuters) - The country's monthly trade surplus shrank to its lowest level in 11 years in November as oil prices plummeted and demand for commodities and other goods declined along with the U.S. economy. The November trade surplus fell to C$1.28 billion ($1.04 billion), the smallest surplus since October 1997, Statistics Canada said on Tuesday, signaling the economy may have contracted far more than expected in the fourth quarter.

AIG selling Canadian unit to Bank of Montreal

OTTAWA (Reuters) - Bank of Montreal will buy the Canadian life insurance business of U.S. insurer American International Group Inc for about C$375 million ($305 million), the companies said on Tuesday. AIG is selling assets to raise funds to repay U.S. government loans. Toronto-based AIG Life of Canada sells insurance and retirement savings products such as universal and term life plans, critical illness plans and annuities.

Oil jumps above $39 on Saudi output cut

LONDON (Reuters) - Oil jumped almost $2 to above $39 a barrel on Tuesday after Saudi Arabia said it had removed 1.7 million barrels per day (bpd) of oil from the world market since last summer. U.S. crude oil futures for February rose to a high of $39.50, up $1.91, before easing back slightly. By 11 a.m. EST, the contract was at $38.44.

Talisman lowers 2009 capex, sees flat production

CALGARY, Alberta (Reuters) - Talisman Energy Inc , the country's No. 3 independent oil exploration firm, said on Tuesday it was looking to weather a lean year as it cut at least C$1 billion ($810 million) from its 2009 capital budget to cope with low oil prices. The company said it plans to shave its 2009 spending program to about C$4 billion from the C$5 billion to $5.3 billion in expected outlays for 2008, keeping production flat from last year at about 430,000 barrels of oil equivalent per day.

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.

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