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CA-BUSINESS Summary

27/11/09

TSX swings higher as bank Dubai fears recede

TORONTO (Reuters) - Toronto's main stock index rebounded from an early 1 percent fall on Friday as gains in financial stocks overcame worries about debt problems in Dubai. Shares of Royal Bank of Canada were up 1.7 percent at C$56.81, while Toronto-Dominion Bank was up 0.9 percent at C$66.43. Bank of Montreal shares were up 1.3 percent at C$53.34.

Banks, world leaders play down Dubai debt threat

DUBAI/LONDON (Reuters) - Banks outside the Gulf played down their exposure to Dubai debt on Friday after fears of default shook global markets, and European leaders said the world economy was now strong enough to cope with the setback. Stocks from Tokyo to London were haunted by concerns that banks were exposed to state companies in Dubai, whose rise from a desert backwater into the business hub of the world's top oil exporting area lured expatriate cash and executives.

Flaherty says G7 monitoring Dubai fallout

TORONTO (Reuters) - The Group of Seven countries has discussed the potential fallout on the global financial system from Dubai's delayed debt payments, Canadian Finance Minister Jim Flaherty said on Friday. Flaherty, speaking to reporters, said the Canadian banking regulator sees little or no impact in Canada from Dubai's request for a standstill on payments of tens of billions of dollars of debt owed by conglomerate Dubai World, a move that has sparked debt default fears that have rattled global markets.

Shares slip on Dubai woes, bonds in demand

LONDON (Reuters) - Dubai debt default concerns continued to send shockwaves across the world on Friday, with heightened risk aversion pushing global equities sharply lower and prompting investors to take refuge in government bonds. U.S. stocks looked set to follow Europe and Asia lower in a shortened, post-Thanksgiving session.

Canwest posts drop in revenue, operating profit

TORONTO (Reuters) - Canwest Global Communications Corp posted a sharp drop in quarterly revenue and operating profit on Friday and said a weak advertising market continues to hurt the company as parts of it restructure under creditor protection. Canwest, Canada's biggest media company, said that its net loss was C$110.7 million ($104.4 million), or 62 Canadian cents a share, in the three months ended August 31. That compared with a loss of C$1.02 billion, or C$5.74 a share, in the same period a year earlier, when it booked a big goodwill impairment charge.

Dollar stumbles to near 3-wk low as risk trade off

TORONTO (Reuters) - Canada's dollar neared a three-week low versus the U.S. currency on Friday, extending losses in a risk-averse market that has been shaken by concern about Dubai's debt problems. Also dragging on the currency was sagging oil prices, nearly 5 percent toward $74 a barrel. Canada is a key exporter of oil and the resource's movements often provide direction for the Canadian dollar.

Flaherty sees economic improvement ahead

TORONTO (Reuters) - Finance Minister Jim Flaherty said on Friday he expects to see more signs of economic recovery next year and that the Dubai debt payment delays show there are still challenges to the global economy. "Canada's economic situation is still fragile and uncertain. We are seeing some signs of recovery. I expect to see more improvement in 2010," Flaherty said in Toronto.

Canada current account deficit balloons

OTTAWA (Reuters) - Canada's current account deficit swelled in the third quarter to a record high of C$13.12 billion ($12.44 billion) as imports grew faster than exports, pointing to a weaker economic recovery than had been expected. Statistics Canada said on Friday the current account gap rose from an upwardly revised second-quarter deficit of C$11.94 billion. It was the fourth consecutive quarterly deficit but was slightly lower than the C$13.35 billion shortfall forecast by analysts in a Reuters poll.

Black Friday draws strong traffic, less frenzy

NEW YORK (Reuters) - U.S. consumers kicked off the holiday shopping season on Friday, with a strong turnout for early-morning bargains, though many said they were being more selective about what they buy and paring back what they spend. Black Friday, the day after U.S. Thanksgiving, is often the single busiest shopping day of the holidays, which accounts for nearly one-fifth of the retail industry's annual sales. Last year, retailers posted the worst performance in nearly four decades after the start of a global financial crisis.

Oil falls 2.7 percent on Dubai default worries

NEW YORK (Reuters) - Oil prices dropped over 2 percent to nearly $76 a barrel on Friday as fears of possible defaults in Dubai convulsed financial markets and boosted safe-haven demand for the U.S. dollar. U.S. crude for January delivery fell $2.08 to $75.88 a barrel by 11:51 a.m. (1651 GMT), 2.7 percent below Wednesday's settlement, after hitting a low of $72.39 a barrel.

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