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CA-BUSINESS Summary

01/07/09

Asia shares struggle as data shows going tough

TOKYO (Reuters) - Asian stock markets struggled to gain ground on Wednesday as economic data showed the process of turnaround to recovery was likely to be a slow grind, and the dollar capitalized on that more cautious sentiment. Oil held above $70 a barrel after industry inventory data showed a bigger-than-expected fall in crude stocks, which helped pare some of the previous day's losses after data unsettled investors about a potential U.S. economic rebound.

Air Canada machinists reject pension deal, union says

TORONTO (Reuters) - Members of Air Canada's largest union rejected the carrier's plan to suspend pension funding for nearly two years, complicating the cash-strapped airline's efforts to steady its finances, a newspaper reported on Tuesday. A slim majority of mechanics, baggage handlers, cargo agents and electricians narrowly voted against a proposed 21-month agreement that would have frozen their wages and put a moratorium on pension funding, the Globe and Mail said on its website.

Quebecor World gets court OKs on reorganization plan

NEW YORK (Reuters) - Bankrupt commercial printer Quebecor World Inc on Tuesday gained approval of its bankruptcy reorganization plan from judges in the United States and Canada, clearing the way for the company to exit bankruptcy protection. Judge Robert Mongeon of the Quebec Superior Court in Montreal said during a joint hearing with the U.S. bankruptcy court in Manhattan that he would sanction the company's plan under the Canadian Companies' Creditors Arrangement Act (CCAA).

Canwest sells two regional television stations

TORONTO (Reuters) - Canwest Global Communications , Canada's biggest media company, said on Tuesday that it planned to sell two of its five regional television stations as it struggles to restructure its mounting debt load. The Winnipeg, Manitoba-based company, which owns Canada's Global television network, Australia's Network Ten and a chain of daily newspapers, agreed to sell CHCH-TV in Hamilton and CJNT-TV in Montreal to private broadcaster Channel Zero Inc.

Canadian economy slips in April

OTTAWA (Reuters) - Canada's economy contracted for the ninth straight month in April as the manufacturing, energy and retail industries scaled back activity in the deepest downturn since the early 1990s. Gross domestic product by industry fell 0.1 percent in the month compared with March, Statistics Canada said on Tuesday, suggesting the economy is entering its third quarter of recession.

World mining outlook grim, costs eat profit

NEW YORK (Reuters) - Short-term prospects for global mining companies are bleak, as rising costs eat into profit margins already depressed by the recession, according to a report by PricewaterhouseCoopers (PwC). "There is no doubt that the industry is facing a tough road ahead," said Steve Ralbovsky, the professional services firm's U.S. mining industry expert.

Alberta to back three carbon capture projects

CALGARY, Alberta (Reuters) - The Alberta government said on Tuesday it will support three carbon capture and storage projects from a C$2 billion ($1.7 billion) fund set aside last year as the Western Canadian province looks to cut emissions from coal-fired power plants and oil sands projects. The province said it expects to provide up to C$100 million this year for design and engineering work on the three proposals, selected after a year-long competition, and expects to have letters of intent signed with the backers next month.

GM CEO makes case for bankruptcy asset sale

NEW YORK (Reuters) - General Motors Corp's chief executive told a U.S. bankruptcy court on Tuesday that the sale of GM's main assets to government-backed "New GM" must win court approval in order for the automaker to survive. Fritz Henderson told the court that if the sale is not approved by July 10 and GM loses access to government funding, the company would be forced to liquidate. He testified on the first day of a hearing at which the automaker is seeking court approval for the sale just 30 days after filing for Chapter 11.

Canadian bank shares slip after downgrade

TORONTO (Reuters) - Canadian bank shares fell on Tuesday after a major ratings agency downgraded the preferred shares of the major lenders, throwing a note of caution at a sector that has made major gains in recent months. The rating cut by DBRS was expected and is seen as a technical adjustment to bring the rating agency's methodologies closer to that of rival Moody's. Even so, analysts said the downgrade prompted investors to take a bit of a breather after a strong run by the banks.

TSX ends its 2nd quarter surge on a down note

TORONTO (Reuters) - Toronto's main stock index capped off a sharp quarterly gain with a lower close on Tuesday as weighty financial shares tumbled on concerns about the prospects for a global economic recovery. The TSX index's financial group, which accounts for about 33 percent of the index, fell 2 percent as data showed Canada's gross domestic product declined for the ninth straight month in April.

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