News from Reuters

CA-BUSINESS Summary

04/07/09

GM Europe head says to sell Opel to Magna soon: report

FRANKFURT (Reuters) - General Motors Europe President Carl-Peter Forster expects to sell German unit Opel to Canadian auto parts supplier Magna soon, he told a German newspaper. "I am quite confident after a top-level meeting of GM and Magna, where broad consent was reached," Forster told Frankfurter Allgemeine Sonntagszeitung (FAS) in an interview which will be published on Sunday. "It's only about details."

Teck equity sale pushes TSX to higher close

TORONTO (Reuters) -Toronto's main stock index closed higher on Friday as Teck Resources Ltd's equity sale to China Investment Corp helped lift the resource-heavy market, but trading volumes were thin due to the Independence Day holiday in the United States. Teck said it will sell a 17.2 percent stake in the company to state-owned CIC through a private placement that will raise C$1.74 billion ($1.5 billion). The deal will help Teck pay down debt, while expanding China's portfolio of commodity investments.

Teck to sell 17 percent stake to China for C$1.74 billion

TORONTO (Reuters) - Teck Resources said on Friday it will sell a 17.2 percent equity stake to state-owned China Investment Corp in a deal that will help the Canadian miner pay down its debt while expanding China's portfolio of commodity investments. China, the No.1 importer of iron ore, copper and other commodities, has been steadily buying stakes in overseas producers in a broad strategy aimed at securing supply for its burgeoning economy.

Lower taxes to lure firms to Canada: Flaherty

OTTAWA (Reuters) - Other companies are likely to follow Tim Hortons Inc in moving their corporate structures to Canada to take advantage of a falling corporate tax rate, Finance Minister Jim Flaherty said on Friday. The coffee shop chain said last month it applied with U.S. regulators to return to its Canadian corporate roots through a reorganization to benefit from lower taxes.

Canada, U.S. unemployment expected to rise

OTTAWA (Reuters) - The jobless rate in Canada and the United States will continue to rise, Finance Minister Jim Flaherty said on Friday. "The unemployment rate in the United States is well over 9 percent now and it's likely to go higher into 2010. We expect some continuing growth in unemployment in Canada as well. Recovery from the recession will happen before the reduction in unemployment," Flaherty told reporters on a conference call from Santiago, Chile.

Stanford clients sue insurance broker Willis Group

NEW YORK (Reuters) - Several Mexican clients of Stanford Financial Group have sued insurance broker Willis Group Holdings Ltd , contending it was a willing participant in a $7 billion fraud at the Texas-based investment company. The lawsuit, filed in federal court in Dallas, said Willis "crossed the line from being mere insurance brokers" to essentially acting as sales agents for Stanford.

Medici lawyer says Kohn didn't get Madoff payments

NEW YORK/VIENNA (Reuters) - Austrian fund manager Sonja Kohn did not receive any kickbacks from Bernard Madoff to steer Bank Medici customer funds to the swindler's investment business, a Medici lawyer said on Friday. "There were no Madoff payments to Kohn. There were no kickbacks," lawyer Andreas Theiss told Reuters.

Canada defends U.S.$ as global reserve currency

OTTAWA (Reuters) - The U.S. dollar as the global reserve currency of choice has been a stabilizing force during the current financial crisis, Canada said on Friday, downplaying calls to debate the greenback's dominant status. Canadian Finance Minister Jim Flaherty added his weight, at least for now, to Japan's opposition to a Chinese push for a new super-sovereign reserve currency that would displace the U.S. dollar.

Job security key issue in Air Canada labor talks

OTTAWA (Reuters) - Air Canada's biggest union may push for additional job security in labor talks with the debt-heavy airline and a federally appointed mediator on Friday, but it doesn't expect a quick resolution. Senior negotiators from the International Association of Machinists and Aerospace Workers, whose members narrowly rejected a 21-month deal with the carrier this week, are meeting with Canada's biggest airline and mediator James Farley, a union spokesman said.

Oil falls below $66 after bleak U.S. jobs data

LONDON (Reuters) - Oil dropped a dollar to below $66 a barrel on Friday after unemployment data hardened views economic weakness would sap energy demand and that last month's rally was overdone. In the latest sign the economy of the world's top consumer was still struggling, data on Thursday showed U.S. employers cut 467,000 jobs in June and the jobless rate rose to a 26-year high. Euro zone unemployment climbed to a 10-year high.

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