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CA-BUSINESS Summary

05/05/09

About 10 U.S. stress test banks to need more capital

WASHINGTON (Reuters) - About 10 of the 19 largest U.S. banks being stress tested will be instructed by regulators to raise more capital, according to a source familiar with official talks. The banks have been negotiating with their regulators about the depth of their capital needs, should the recession prove to be deeper and longer than anticipated. Markets have been anxiously anticipating the results, which will differentiate the strongest banks from those still expected to sustain considerable credit losses.

World stocks hit 4-month high, banks buoyant

LONDON (Reuters) - World stocks hit a fresh four-month high on Tuesday while government bonds steadied after signs of improvement in the U.S. housing sector and increasing optimism about banks triggered a rally on Wall Street. The benchmark MSCI world equity index <.MIWD00000PUS> is now in positive territory for the year. The latest rally stemmed in part from Monday's U.S. data showing pending sales of existing homes rose unexpectedly in March, which boosted expectations that the worst might be over for the world's biggest economy.

Chrysler gets court approval on loan, Opel heats up

NEW YORK/BERLIN (Reuters) - Chrysler won interim approval from a U.S. bankruptcy court to access a $4.5 billion loan as it tried to move ahead in its planned alliance with Fiat SpA, while the Italian automaker advanced its bid for General Motors Corp's European Opel brand. Also, a group of investment funds sought on Monday to block Chrysler's plans with Fiat while United Auto Workers President Ron Gettelfinger said a union-aligned healthcare trust would work quickly to sell shares it would receive in a new Chrysler as soon as it in a position to do so.

Magna says eyeing possible Opel stake

TORONTO (Reuters) - Magna International Inc said on Monday it was in talks with General Motors Corp and German government officials about possibly taking a minority stake in GM's Opel unit. The Canadian auto parts supplier said there was no assurance that any transaction would result from the talks.

RIM plans next-gen Storm as it eyes untapped market

TORONTO (Reuters) - Research In Motion is planning a next-generation version of its touchscreen BlackBerry Storm smartphone as part of a continuing push into the retail market, its co-CEO said on Monday. "We see this very large and untapped consumer market," Jim Balsillie said during a presentation to analysts and investors, adding that more than half of RIM's 25 million subscribers now fall into the non-corporate category.

Resources lead TSX up almost 4 percent to 2009 high

TORONTO (Reuters) - Toronto's main stock index surged nearly 4 percent to its highest point in almost half a year, as optimism over the health of the global financial sector and the economy in general pushed up issues across all industry groups. Prices for oil and base metals surged as recent strong economic data built hopes that global consumption could increase, driving up the heavily weighted TSX energy sector by 4.65 percent, and materials issues by 5.70 percent.

Canadian bank teaches rich kids how to stay rich

TORONTO (Reuters) - Wealth managers at Bank of Montreal kept hearing the same things from Canada's richest families: Help me! My kids know nothing about money and will squander the family fortunes. Two years later, the one-day seminar aimed at the grown children of what the bank calls its "high net worth families" has a waiting list, and is taking to the road to teach heirs and heiresses across Canada how to manage their money.

Teck to raise at least C$1 billion in notes

TORONTO (Reuters) - Teck Resources plans to raise at least C$1 billion ($855 billion) in a senior debt private placement to help pay down a bridge loan taken on to fund last year's acquisition of Fording Canadian Coal Trust, the company said on Monday. Teck took on $9.8 billion in debt to buy Fording at the top of the market last summer, but reached a deal last month with its lenders deferring billions in debt payments that had been due this year.

GM takes $500 million in Canadian loans

TORONTO (Reuters) - General Motors Corp's Canadian unit accepted C$500 million ($424 million) in short-term loans from Canada and the province of Ontario on Monday to help it restructure in time to qualify for longer-term aid. The funding, part of an interim bridge loan announced in December, is to be used only for working capital while GM revamps ahead of a June 1 deadline imposed by Washington and Ottawa.

Linamar posts loss as auto production tumbles

TORONTO (Reuters) - Linamar Corp reported a quarterly loss on Monday as the auto industry's global slump slashed demand for its parts, but it said it was picking up market share and on track with plans to cut costs and pay off debt. Linamar, which makes precision components for engines and transmissions, lost C$12.6 million ($10.8 million), or 19 Canadian cents a share, in its first quarter, ended March 31. That was down from a profit of C$29.5 million, or 43 Canadian cents a share, a year earlier.

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