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CA-BUSINESS Summary

27/11/09

Shares tumble, yen surges on Dubai fears

LONDON (Reuters) - Fears about a global contagion from Dubai's debt crisis triggered a broad sell-off of world shares, oil and other assets on Friday, fuelling flows into the low-yielding yen and safe-haven government bonds. The crisis flared on Wednesday when the government of Dubai said it wanted to delay payment on billions of dollars of debt issued by conglomerate Dubai World and its property arm Nakheel.

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.

Canadian dollar tumbles lower on renewed risk aversion

TORONTO (Reuters) - Canada's dollar tumbled against the greenback on Thursday as renewed risk aversion in the wake of debt worries in Dubai shook the domestic currency of all its meaty gains from the previous session. The skid was triggered by news of debt problems in Dubai, which sparked widespread concern about the once-booming Gulf region's financial health and added to the general nervousness about the state of the world economy.

Rogers sheds jobs, bulks up on Cogeco stock

OTTAWA (Reuters) - Rogers Communications Inc said on Thursday it will cut 900 jobs across Canada, including 20 percent of its executives, in an effort to streamline operations and better respond to a changing industry. Rogers, a major Canadian cable-TV provider and owner of the country's largest wireless carrier, also said it will spend about C$163 million ($153.7 million) to boost its stake in a rival cable and telecommunications group headed by Cogeco Inc .

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.

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).

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.

TSX tumbles on job cuts, Dubai debt problems

TORONTO (Reuters) - Toronto's main stock index fell by 200 points on Thursday as debt concerns in Dubai and job cuts at two of Canada's best-known companies heightened anxiety about the stability of the economic recovery. Financial stocks were among the hardest hit as investors wondered if banks had any exposure to bad debt in the Gulf. The news also triggered widespread concern about the financial health of the once-booming Mideast region.

Oil falls below $74 amid Dubai debt jitters

PERTH (Reuters) - Oil prices extended their decline from the previous day to a six-week low of below $74 a barrel on Friday, as nervous investors, roiled by debt problems in Dubai, pared positions and shifted to safe-haven assets. Fears of a second financial storm also caused Asian stocks to slump on Friday, as investors dumped shares in Asian banks and builders, with stock markets in Tokyo and Hong Kong haunted by suspicion of lenders' exposure to the Dubai firms.

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