News from Reuters

CA-BUSINESS Summary

26/11/09

Canadian consumer confidence drops in November

TORONTO (Reuters) - Consumer confidence in Canada fell in November for a second consecutive month, highlighting how fragile the perception of an economic recovery is at this time, the Conference Board of Canada said on Thursday. The consumer confidence index dropped 5.7 points in November from October to 79.0, which is below pre-crisis levels. Consumers generally were more pessimistic in November than in October about their financial situation.

Canada 3rd quarter to herald return to slim growth

TORONTO (Reuters) - The Canadian economy may have wriggled out of recession in the third quarter despite false starts in July and August, and momentum from September puts the economy on track to recover. The median forecast of analysts surveyed by Reuters as of Thursday is for gross domestic product to rise an annualized 0.6 percent in the third quarter, helped by a robust housing sector, increased consumer confidence and stronger manufacturing and retail sales.

TSX drops on commodity pressure, Dubai worry

TORONTO (Reuters) - Toronto's main stock index fell hard on Thursday morning as resource stocks were knocked lower by retreating oil and gold prices, while debt worries in Dubai made waves across financial markets. The price of gold fell from a record high hit earlier as the U.S. dollar rebounded, while oil fell toward $77 a barrel, in line with falls across financial markets.

Proposed Canadian law would police miners abroad

TORONTO (Reuters) - Canada's top mining companies have lined up against a proposed law that would withhold federal investment dollars from companies found in violation of social responsibility standards in foreign countries. The private-member's bill, brought forward by opposition Liberal lawmaker John McKay in response to criticism of the behavior of Canadian miners abroad, received preliminary approval in the House of Commons in April.

Cossette value double since putting itself on sale

TORONTO (Reuters) - Saying "no" to a hostile bid has virtually doubled the value of Cossette Inc and set the stage for a showdown next month between two private equity firms wooing Canada's biggest home-grown ad agency. Stock in the Quebec-based company languished at C$3.25 a share, close to an all-time low, when Canadian private equity firm Cosmos Capital took a first run at the company in July. Its C$4.95-a-share offer valued the agency at C$78.2 million ($73 million).

Dubai debt difficulties hammer stocks

LONDON (Reuters) - Debt problems in Dubai struck financial markets hard on Thursday, sinking global stocks, lifting safe-haven bonds and driving the dollar higher. Gold climbed to a new record high but fell back as the dollar rose. European shares had their worst daily loss in seven months.

Alberta lowers deficit forecast as revenue rises

CALGARY, Alberta (Reuters) - The oil-rich province of Alberta lowered its budget deficit forecast on Thursday due to higher than expected revenue from oil royalties, corporate taxes and investments. In its fiscal second-quarter budget update, the Alberta government said it expects a deficit of C$4.3 billion ($4.04 billion) for the current fiscal year, down from its first-quarter forecast for a C$6.9 billion shortfall and from the C$4.7 billion deficit it predicted in its April budget.

Rogers to buy stake in Cogeco

TORONTO (Reuters) - Rogers Communications said on Thursday it will spend more than C$160 million ($151 million) to buy stakes in a rival Canadian cable and telecommunications group headed by Cogeco Inc . Rogers said it planned to buy 3.2 million subordinate voting shares of Cogeco Cable Inc at C$36.43 a share and 1.6 million shares of parent company Cogeco Inc at C$28.61 a share. The total purchase is valued at C$163 million.

Rogers laying off 3 percent of workforce: report

OTTAWA (Reuters) - Rogers Communications is cutting about 900 jobs in Canada in a bid to streamline the organization, the Canadian Press reported on Thursday. CP quoted Rogers spokeswoman Terrie Tweddle as saying the media and telecoms company was laying off about 3 percent of its 30,000 workers.

Bombardier to chop more jobs as jet orders drop

TORONTO (Reuters) - Bombardier Inc announced another round of job cuts at its aerospace division on Thursday, slashing 715 jobs in the Montreal area due to a lack of new orders for its CRJ regional jets. Bombardier, the world's No. 3 planemaker and No. 1 trainmaker, has seen the market for its narrow-body regional airliners and business jets freeze up because of the soft global economy.

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