News from Reuters

CA-BUSINESS Summary

14/01/09

Asian shares recover, but confidence lags

HONG KONG (Reuters) - Asian shares recovered on Wednesday from a steep five-day sell-off and oil rose on expectations for production cuts, though the mood remained cautious given nagging worries about the economy and earnings. Some regional bonds, seen as safer bets in volatile times, gained in a sign of the concerns about risk. The euro recovered after hitting a one-month low against the dollar on Tuesday, but gains were limited ahead of an expected interest rate cut by the European Central Bank on Thursday.

Oil rises 3 percent on U.S. cold snap

PERTH (Reuters) - Oil rose 3 percent toward $39 a barrel on Wednesday, as OPEC kept up its talk of production cuts and a cold snap in the United States boosted heating oil demand. Top exporter Saudi Arabia said on Tuesday it was prepared to go even further than cuts it had made since December if the market warranted it, while OPEC's secretary general said the cartel may reduce oil output again at its meeting in March.

Yahoo names software exec Bartz as new CEO

SAN FRANCISCO (Reuters) - Yahoo Inc named Autodesk Inc Chairman Carol Bartz as CEO, but Wall Street questioned whether the software executive has the experience needed to turn around the Internet media company. While Bartz is a Silicon Valley veteran with a reputation for being a tough but fair manager, shareholders of Yahoo had hoped for a chief executive with more deal-making credentials who could revive talks with Microsoft Corp .

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. 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 payment.

Former Chrysler, Volkswagen exec advising Magna

TORONTO (Reuters) - 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.

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.

CIBC taps Lehman veteran to lead investment banking

TORONTO (Reuters) - Canadian Imperial Bank of Commerce has hired a former Lehman Bros official to lead its investment banking operations, CIBC said on Tuesday. Geoff Belsher, a former co-head of U.S. investment banking for BMO Nesbitt Burns and later head of Lehman's Canadian operations, will become CIBC's global head of investment banking, CIBC World Markets spokesman Kevin Dove said.

Citi breakup in sight after Morgan Stanley deal

NEW YORK (Reuters) - Citigroup Inc agreed to merge its Smith Barney brokerage with Morgan Stanley's wealth management unit on Tuesday, and is expected to make further asset sales to raise capital and to isolate toxic assets from the rest of the bank. Citigroup, once the world's largest bank, may announce plans on January 22 to formally shed the "financial supermarket" approach once championed by former Chief Executive Sanford "Sandy" Weill, but which is now being disavowed by Chief Executive Vikram Pandit. It is expected the same day to post a big fourth-quarter loss.

Detroit rebound stuck in low gear?

DETROIT (Reuters) - Automakers received more bad news at the world's largest auto show on Tuesday as forecasts for a 27-year low in sales this year and auto bailout politics threw cold water on hopes for a speedy industry recovery. Top analyst J.D. Power forecast U.S. auto sales in 2009 to fall 13 percent to about 11.4 million vehicles, a fourth straight year of declines that will further pressure the U.S. economy and could push some automakers closer to collapse.

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