News from Reuters

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.

Yahoo to name Bartz as new CEO: report

SAN FRANCISCO (Reuters) - Yahoo Inc plans to name longtime Silicon Valley executive Carol Bartz as its next chief executive, The Wall Street Journal reported on Tuesday, citing sources familiar with the situation. Bartz, the former chief executive of software company Autodesk Inc , would be a stabilizing influence on the troubled Internet company, analysts said. But Yahoo shares fell 2 percent as investors seemed disappointed by the choice.

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.

BMO to buy AIG's Canada life insurer for C$375 million

OTTAWA (Reuters) - Bank of Montreal will buy the Canadian life insurance business of American International Group Inc for about C$375 million ($305 million), the companies said on Tuesday, the latest in a series of asset sales at distressed prices. AIG, which since September has received $152 billion in U.S. government bailout financing to avoid collapse, is scrambling to raise cash through the sale of some of its units.

Nortel shares plunge ahead of interest payment

TORONTO (Reuters) - Shares of Nortel Networks Corp fell more than 20 percent on Tuesday, two days before the struggling Canadian telecom equipment maker is due to make an interest payment of about $107 million. Nortel -- North America's biggest maker of telephone gear -- had about $2.3 billion in cash and cash equivalents at end of September, suggesting it would have no difficulty in making the debt payment.

Oil rises 2 percent on Saudi Arabia cuts and cold weather

NEW YORK (Reuters) - Oil prices rose 2 percent on Tuesday, bolstered by cold weather in the United States and Saudi Arabia's comments the OPEC nation had made deep cuts in production. The news offset a report by the U.S. Energy Information Administration further revising down its forecast for 2009 global oil demand.

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.

© Reuters Limited. All Rights Reserved.
Reproduction or redistribution of Reuters content, including framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.