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CA-BUSINESS Summary

16/11/09

Asian stocks hit 15-month highs

SINGAPORE (Reuters) - Asian stocks rose to more than 15-month highs on Tuesday after Federal Reserve Chairman Ben Bernanke repeated the central bank was likely to keep interest rates at very low levels for some time, keeping the dollar pinned near 15-month lows and gold close to record highs. Investors were also focused on U.S. President Barack Obama's summit meeting with Chinese President Hu Jintao later in the day, especially on possible remarks from the leaders on the value of the yuan.

GM posts loss, vows to repay U.S. early

DETROIT (Reuters) - General Motors Co said on Monday it lost $1.2 billion in a bankruptcy-shortened third quarter, but it vowed a quick repayment of $8 billion owed to the United States and Canada. The results gave analysts and potential investors the first look at GM's books for the period from July 10, when the top U.S. automaker emerged from a fast-track sale out of a bankruptcy engineered and financed by the Obama administration, through the end of the third quarter.

Canada home resales hit record high in October

TORONTO (Reuters) - Sales of existing homes in Canada rose to a record monthly high in October due to record low interest rates and upbeat consumer confidence, prompting the Canadian Real Estate Association to boost its sales forecast for the year. But analysts warned the sharp recovery in the sector may have got ahead of itself as the central bank could start raising rates if the housing market starts to look too hot.

Nortel posts another loss amid asset sales

VANCOUVER, British Columbia (Reuters) - Nortel Networks Corp posted a $508 million third-quarter loss on Monday as it finances were hit by customer uncertainty over its bankruptcy proceedings and the tough economy. The telecommunications equipment company, which filed for bankruptcy protection in January and has been selling off its remaining assets to pay debtholders, said it ended the quarter with a consolidated cash balance of $1.8 billion.

Government to comment soon on Globalive phone bid

OTTAWA (Reuters) - The Canadian government will comment soon on the telecommunications regulator's decision to deny an operating license to start-up wireless carrier Globalive, an official said on Monday, The Canadian Radio-television and Telecommunications Commission had said in a ruling last month that Globalive was effectively under the control of its Egyptian-based financial backer, Orascom Telecom , and therefore did not comply with the country's foreign ownership rules.

TSX lifted by rally in energy shares

TORONTO (Reuters) - Toronto's main stock index shot to its highest close in more than three weeks on Monday as a rally in oil prices helped power Suncor Energy and other oil and gas shares to comfortable gains. Shares of Suncor, the biggest contributor to the index's gain, rose 3 percent to C$38.04, followed by oil company Canadian Natural Resources , which closed up 3.3 percent at C$72.49.

Time Warner to spin off AOL on December 9

NEW YORK (Reuters) - Media conglomerate Time Warner Inc said on Monday it will spin off its AOL unit to shareholders on December 9, nine tumultuous years after one of the most disastrous corporate mergers in history. Time Warner shareholders of record on November 27 will receive an AOL stock dividend for every 11 shares of Time Warner common stock they hold

Gold hits record as dollar slips

NEW YORK/LONDON (Reuters) - Gold raced to a record high above $1,140 an ounce on Monday, gaining 2 percent as a weakened dollar boosted funds' risk appetite for investments across the board. Gains in gold spurred interest in other precious metals, with platinum, palladium, silver and rhodium all hitting their strongest levels in more than a year, largely driven by a tumbling dollar.

Westport stock jumps on Volvo natgas engine deal

VANCOUVER, British Columbia (Reuters) - Shares in Westport Innovations Inc rose 13 percent on Monday after the developer of natural gas-fired engines said it had signed a supply deal with Volvo AB , the world's second biggest truck manufacturer. Volvo has chosen Westport as a tier 1 development supplier of heavy-duty natural gas engines. As such, the small Canadian-based company will design and develop a clean-burning natural gas engine for the Swedish automaker's fleet of large trucks.

Fed eyes dollar drop, but hews to low-rate pledge

NEW YORK (Reuters) - Federal Reserve Chairman Ben Bernanke, in a rare comment on the U.S. dollar's value, on Monday acknowledged the currency's slump was causing some prices to rise, but said other factors restraining inflation were winning the day. While showing he was not indifferent to the dollar's slide, Bernanke said tight credit and a weak job market would weigh on the economy's recovery, and he repeated the Fed's pledge to keep interest rates exceptionally low for "an extended period."

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