Business
Markets rise on Citi talks
Markets rise on Citi talks
About this update from Teck Resources Limited Class A
[{"type":"text","content":"\nMarkets rise on Citi talks\n\nWant to boost stake to 40%\n Feb. 10, 2009 (Baystreet.ca) -- 10:35 am EST\nNorth American markets enjoyed a stronger open Monday on a report Citigroup Inc. is in talks for the U.S. government to boost its stake in the bank.Worries that major Western banks like Citigroup and Bank of America Corp might have to be nationalized because of mounting bad debts sent global markets sharply lower last week.But investors seemed relieved by a Wall Street Journal report that Citigroup is negotiating with authorities to increase the U.S. government's stake in the teetering lender to as much as 40%.The S&P TSX Composite Index regained 28.11 in the first half-hour of trading, to 7,978.10, led mostly by financials. Canadian investors also took in a major deal as Nova Chemicals Corp. has agreed to be bought out for $2.3 billion U.S. by Abu Dhabi-based International Petroleum Investment Co.Shares in Nova Chemicals plunged to a new low earlier this month as traders assessed heavy losses and looming financing deadlines in a deepening recession but soared $5.08 or 306% to $6.74 in Monday trading.Investors are also braced for earnings reports from the big banks later in the week.Canada's big banks are preparing to report their first-quarter earnings for 2009 this week. TD Bank, which reports Wednesday, was ahead 53 cents to $33.78.Manulife Financial moved ahead 43 cents to $13.55.The energy sector rose as EnCana Corp. gained 86 cents to $49.13 and Suncor Inc. 50 cents to $22.65.The base metals sector on the TSX gained as the price of copper rose six cents to $1.47 U.S. a pound. Teck Cominco Ltd. moved up 13 cents to $3.95.The gold sector was the leading decliner, as. Barrick Gold Corp. gave back $1.86 to $44.22.On the economic front, retail sales in December fell 5.4% to $33 billion - the largest monthly decline in over 15 years.Statistics Canada says three-quarters of the December retail decline was rooted in the automotive sector, without which retail sales fell 1.8%.The markets in Canada may have been cheered, however, by news consumer confidence reversed ground in December and was making its way up to its highest levels since August. The Harris-Decima survey of 2,000 people between Feb. 5 and Feb. 15 found 27% predicting they'll be better off a year from now, against 13% who expect to be worse off in early 2010....