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CA-BUSINESS Summary

01/07/09

GM tells judge that asset sale is its "only option"

NEW YORK (Reuters) - General Motors Corp has no choice but to sell its assets to a group led by the U.S. government if it is to survive, a lawyer for the bankrupt carmaker argued in bankruptcy court in Manhattan on Wednesday "There is no alternative; it is liquidation or this sale. And liquidation is Draconian," GM's lawyer Harvey Miller told U.S. Bankruptcy Judge Robert Gerber.

RHJ loss widens sharply, sparks Opel doubts

BRUSSELS (Reuters) - RHJ International posted a sharply wider full-year loss and a 43 percent fall in the value of its portfolio, sparking fresh doubts about the holding company's bid for General Motors unit Opel. Stock in the Belgian firm -- which GM has named as a rival Opel suitor to Canada's Magna -- fell more than 14 percent early and were down 7.03 percent at 4.23 euros per share at 12:45 a.m. EDT after reporting late on Tuesday that its losses had more than doubled to 1 billion euros ($1.41 billion).

U.S. June auto sales tumble, Ford takes share

DETROIT (Reuters) - U.S. auto sales tumbled 28 percent in June, the narrowest decline in nine months, as Ford Motor Co stole market share from its rivals. Automakers said the results pointed to more stability for the economy, but fell short of marking a turnaround for the U.S. auto market after a punishing four-year decline.

Stocks rise on data, dollar slips on China news

NEW YORK (Reuters) - Upbeat U.S., Chinese and European manufacturing data on Wednesday helped boost global stocks and commodity prices, except for oil, while safe-haven assets like the U.S. dollar and government bonds fell. The dollar extended declines after a report said China has asked to debate proposals for a new global reserve currency at next week's Group of Eight summit in Italy, G8 sources said.

Fiat CEO says Chrysler cash burn slows: report

MILAN (Reuters) - U.S. automaker Chrysler Group LLC has stemmed the pace at which it uses cash after emerging from bankruptcy last month as a slimmer company, Chief Executive Sergio Marchionne said in an interview with Bloomberg published on Wednesday. Chrysler went through $9.6 billion in cash in 2008. The Detroit car maker reorganized around what it considered its best assets and $6 billion in fresh financing from the U.S. and Canadian governments.

Oil falls on U.S. gasoline inventory build

NEW YORK (Reuters) - Oil prices fell on Wednesday after government data showed an increase in U.S. gasoline inventories ahead of the July 4 Independence Day holiday, traditionally the peak of the summer driving season. Gasoline stockpiles in the world's top consumer rose by 2.3 million barrels last week, above analysts forecasts, data from the U.S. Energy Information Administration showed.

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).

Russia lifts, softens flu meat bans on U.S., Canada

MOSCOW (Reuters) - Russia has lifted a ban on meat imports from the U.S. states of Connecticut, Massachusetts and Michigan, and from Canada's Quebec province due to the improved situation surrounding the H1N1 virus. Russia's animal and plant health watchdog has also softened a ban on the U.S. state of Illinois and Canada's Ontario province, applying the restrictions only to imports of live pigs and uncooked pork, a statement by the watchdog Rosselkhoznadzor, seen by Reuters on Wednesday, said.

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.

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