News from Reuters

CA-BUSINESS Summary

13/01/09

TSX rides commodities to higher close

TORONTO (Reuters) - Toronto's main stock index closed sharply higher on Tuesday as investors raced back into 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 index's steep slide in the previous session, rebounded to lead Tuesday's rally. The energy group, led by a 2.2 percent gain in EnCana Corp to C$56.08, also fueled the gain.

Former Chrysler, Volkswagen exec advising Magna

TORONTO (Reuters) - Canada's Magna International Inc has taken on ex-Chrysler and Volkswagen AG official Wolfgang Bernhard as a private consultant, the auto-parts maker said on Tuesday. "Wolfgang Bernhard is consulting Magna," said Magna spokeswoman Tracy Fuerst. "That started around late last year," she said, but was unable to give any other details.

Stork Craft recalls more than 1 million baby cribs

TORONTO (Reuters) - The Canadian company that makes the Stork Craft line of baby cribs is voluntarily recalling more than 1 million of them in Canada and the United States because of a potential suffocation hazard, authorities said on Tuesday. The cribs were made by British Columbia-based Stork Craft Manufacturing Inc. They were sold at major retailers such as J.C. Penney , Kmart and Wal-Mart between May 2000 and January 2009.

Citigroup, Morgan Stanley say in brokerage deal

NEW YORK (Reuters) - Citigroup Inc agreed on Tuesday to merge its Smith Barney brokerage with Morgan Stanley's wealth management unit, a big step in what could be a dismantling of what was once the world's largest bank. The Citigroup-Morgan Stanley venture will create the largest U.S. brokerage, with more than 20,000 brokers and $1.7 trillion in client assets. The brokerage force will surpass that of Bank of America Corp , which bought former No. 1 Merrill Lynch on January 1.

Canadian mining stocks rise after Ecuador OKs new law

TORONTO (Reuters) - Shares of Canadian miners with properties in Ecuador jumped on Tuesday after approval by Ecuador's assembly of a new mining law that could open the mineral-rich country wider to foreign investment. While the law still needs to be ratified by Ecuador President Rafael Correa, mining companies said they were preparing to rehire workers and resume exploration work.

Dollar weakens vs greenback; bonds eye U.S. data

TORONTO (Reuters) - The Canadian dollar fell against the U.S. currency on Tuesday, hitting its weakest level so far this year, pressured by data that showed the country's trade surplus narrowed more than expected. The Canadian currency closed at C$1.2248 to the U.S. dollar, or 81.65 U.S. cents, down from C$1.2154 to the U.S. dollar, or 82.28 U.S. cents, on Monday. Earlier in the day it touched C$1.2345 to the U.S. dollar, or 81.00 U.S. cents, its lowest level so far this year.

Carol Bartz joins Yahoo as CEO

(Reuters) - Yahoo Inc said on Tuesday Carol Bartz is joining Yahoo as chief executive officer. Highlights: * Says Bartz was most recently executive chairman of Autodesk

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.

Oil settles above $37 on Saudi cuts, cold weather

NEW YORK (Reuters) - Oil prices settled higher on Tuesday, bolstered by cold weather in the United States and comments by OPEC member Saudi Arabia that it had made deep production cuts. 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 , Canada's No. 3 independent oil exploration firm, said on Tuesday it was looking to weather a lean year and 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 and backing away from growth plans of between 5 and 8 percent annually announced last year.

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