News from Reuters

CA-BUSINESS Summary

08/11/09

GM to stick to Opel cuts plan: future chairman

ZURICH (Reuters) - General Motors Co will probably stick to a plan to cut costs at Opel by 30 percent after deciding to restructure the European subsidiary itself rather than sell it, Bob Lutz, a GM executive set to become Opel's chairman, was quoted as saying on Sunday. "The restructuring plan developed at the end of last year is still the basis for a profitable business model. The plan foresees a 30 percent cut in structural costs," Lutz told the Swiss Sonntag newspaper.

Magna's Wolf says Opel needs more independence: report

FRANKFURT (Reuters) - European carmaker Opel needs to be able to operate with more freedom from its U.S. parent General Motors , a top executive at spurned suitor Magna said in a newspaper interview on Sunday. "Opel should have a greater independence and autonomy in the future, but it should also not stand isolated," Magna's head of Europe, Siegfried Wolf, told Bild am Sonntag.

Flaherty says transaction tax unattractive

ST ANDREWS, Scotland (Reuters) - Proposals for a tax on financial transactions to fund the cost of future bank bailouts are unattractive, Finance Minister Jim Flaherty said on Saturday. British finance minister Alistair Darling said at a G20 meeting of developed and emerging economies that the UK would back such a plan if it received broad international support, but Flaherty and U.S. Treasury Secretary Timothy Geithner were skeptical.

UK gives impetus to global banks tax

ST ANDREWS, Scotland (Reuters) - Britain urged world governments on Saturday to consider a levy on banks to fund future bailouts, departing from long-held opposition, though there was little sign of the consensus needed to make it fly. British Prime Minister Gordon Brown raised the idea at a weekend meeting of Group of 20 financial leaders in Scotland -- ending London's resistance to such moves on behalf of its huge financial sector.

Canada October job losses reverse positive trend

OTTAWA (Reuters) - Canada lost more jobs in October than even the gloomiest analyst had predicted, dashing hopes for a quick economic rebound and suggesting a recovery in the labor market may have gotten off to a false start. The economy unexpectedly lost 43,200 jobs in the month after two months of gains, pushing the jobless rate up to 8.6 percent from 8.4 percent, Statistics Canada said on Friday.

Gold miners pull TSX out of jobs-linked funk

TORONTO (Reuters) - Toronto's main stock index ended higher for a fourth straight session on Friday as gold miners rallied around record high bullion prices, offsetting the index's fall at the outset on weak jobs data that fueled worry about economic recovery. Shares of Barrick Gold Corp , one of the biggest contributors to the TSX's rise, were up 3.1 percent at C$44.83, while Goldcorp shares rose 3 percent to C$44.48.

Canada's Talisman strikes oil in Peru

LIMA (Reuters) - Canada's Talisman Energy Inc has found light crude in an exploration bloc in northern Peru, President Alan Garcia said on Saturday, days after he announced a large natural gas find in an Amazon region. Talisman , Canada's third-biggest independent oil explorer, found the light crude deposit in the Maranon basin close to the border with Ecuador, Garcia told reporters.

Air Canada posts net profit, sees recovery signs

OTTAWA (Reuters) - Air Canada reported a quarterly net profit on Friday and said it sees signs the bottom of the recession is behind it although it does not expect a full recovery for another 12 to 18 months. The country's biggest airline said its results continue to be bruised by economic weakness and declines in passenger and cargo revenue, but conditions are no longer deteriorating.

CF rejects Agrium's sweetened proposal

TORONTO (Reuters) - U.S. fertilizer maker CF Industries said on Friday its board rejected rival Agrium Inc's sweetened bid worth about $4.5 billion, arguing the proposal substantially undervalues the company. CF has been fending-off Agrium's hostile bid since February, as it pursues its own hostile bid for smaller U.S. rival Terra Industries .

Canadian dollar stung by unexpectedly weak jobs data

TORONTO (Reuters) - Canada's currency skidded to its lowest closing level in nearly a week on Friday, stung by U.S. and Canadian jobs data that fell short of estimates and left investors with a reduced appetite for riskier assets. After reclaiming all of the post-jobs-data losses suffered during early stages of Friday's session, the Canadian currency ran into a fresh wave of selling heading into the close of the North American session.

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