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CA-BUSINESS Summary

04/11/09

Global stocks, oil rise ahead of Fed policy verdict

LONDON (Reuters) - World stocks rose from the previous day's four-week low on Wednesday while the dollar slipped ahead of a policy decision by the Federal Reserve, expected to affirm its commitment to ultra-low interest rates. A survey showed the euro zone's dominant service sector expanded for the second consecutive month and at its fastest pace in 22 months, adding to encouraging economic signs, though Germany's expanded at its slowest rate in three months.

GM's U-turn on Opel sale irks Germany

FRANKFURT/BERLIN (Reuters) - General Motors' decision to keep its European arm Opel after months of negotiations to sell it triggered anger and dismay in Germany, which had led the talks and was putting up much of the cash. Opel labor leader Klaus Franz rescinded the millions of euros in cost concessions workers agreed to on the expectation that Opel would be bought by Magna , the Canadian autoparts firm leading the bid that the German government had thrown its weight behind.

Oil rises above $80 on crude stocks, dollar

LONDON (Reuters) - Oil rose above $80 a barrel on Wednesday, extending the previous session's near 2 percent gain, following a U.S. industry report showing an unexpected fall in crude stocks and supported by a weaker dollar. The U.S. dollar fell against a basket of currencies on Wednesday <.DXY>, helping to send gold prices to record highs and lifting oil. A weaker dollar makes commodities like oil cheaper for those holding other currencies.

Imperial Oil CEO "dismayed" by Mackenzie reports

CALGARY, Alberta (Reuters) - Ottawa has said nothing to sway Imperial Oil Ltd from plans for the Mackenzie Valley gas pipeline, despite a media report that appeared to cast the C$16.2 billion ($15.1 billion) project into more doubt, Imperial's chief executive said on Tuesday. Imperial, lead partner in the Arctic pipeline proposal, is proceeding with the groundwork and waiting for a crucial regulatory report due next month, CEO Bruce March said.

Canada auto sales have best month in a year in October

DETROIT (Reuters) - Canadian auto sales had their best performance in the past year in October, just narrowly missing positive territory, according to industry figures released on Tuesday. Overall Canadian sales were down 1 percent from a year earlier at 121,500 units, according to data from DesRosiers Automotive Consultants Inc.

Buffett buying Burlington rail in his biggest deal

NEW YORK (Reuters) - Warren Buffett's Berkshire Hathaway Inc will pay $26 billion to buy out Burlington Northern Santa Fe Corp in a bet the nation's largest rail company will benefit from a recovering U.S. economy. The deal, announced on Tuesday, is the billionaire investor's biggest-ever acquisition and may prompt him to sell some of his other investments, which include a wide range of companies from Coca-Cola Co to General Electric Co , some Buffett watchers said.

Magna, labor at GM's Opel agree cost cuts

FRANKFURT (Reuters) - Opel's labor force has agreed to contribute 265 million euros ($390 million) in annual savings if General Motors finally sells a majority stake in its European arm to a group led by Canada's Magna. "The cuts are painful for us all, but we are prepared to assume responsibility," Opel labor leader Klaus Franz said in a statement on Tuesday announcing the accord with Magna after weeks of talks with workers across Europe.

Oil sands developer Opti may opt to sell itself

CALGARY, Alberta (Reuters) - Oil sands developer Opti Canada Inc said on Tuesday it may seek a buyer as part of a review of strategic alternatives with the pace of takeovers in the country's energy sector picking up. The move comes as Opti tries to deal with its flagging share value as the price of oil strengthens but its main project struggles to produce reliably in its early months.

Saputo profit up 37 percent, spurred by Neilson buy

TORONTO (Reuters) - Canadian dairy products company Saputo Inc said on Tuesday its quarterly profit rose 37 percent, helped mainly by its 2008 acquisition of Neilson Dairy. Montreal-based Saputo, Canada's biggest cheese maker, said it earned C$94.5 million ($88.5 million), or 45 Canadian cents a share, in its second quarter, ended September 30, up from C$69 million, or 33 Canadian cents a share, a year earlier.

Talisman profit falls, boosts shale gas holdings

CALGARY, Alberta (Reuters) - Talisman Energy Inc is boosting spending on its unconventional gas holdings, raising its budget by C$900 million ($841 million) to buy and drill shale-gas properties even as it reported a 98 percent drop in third-quarter profit. The company, Canada's No. 3 independent oil explorer, said on Tuesday that net income fell to C$30 million ($27.9 million), or 3 Canadian cents a share, down from C$1.4 billion, or C$1.40 a share, a year ago as oil and gas prices plunged, production fell and costs rose.

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