News Column

CORRECT-Prep-Business Report

January 30, 2014

(Adds Hang Seng index numbers) Losses picked up on the Toronto stock market yesterday afternoon after the U-S Federal Reserve signalled it will further taper its key stimulus program, raising further concern about how emerging market countries can protect their currencies. Toronto's S-and-P/T-S-X composite index dropped 44 points, to 13,643. In New York , the Dow Jones industrial average tumbled 189 points. to 15,738. The Nasdaq composite index lost 46 points, to 4,051 In Tokyo this morning, the Nikkei index tumbled 376 points, to 15,007. In Hong Kong , the Hang Seng index lost 106 points, to 22,035. And our dollar is trading overseas this morning at 89.44 cents U-S -- down two basis points from yesterday's close of 89.46. ( World Markets ) Shares tumbled in Asia today as weak data from China and Japan added to worries over the impact of ongoing reductions in U-S stimulus. The Fed decided yesterday to further taper its mortgage and long-term bond purchases by another 10-billion dollars a month, starting next month. Japan's Nikkei index tumbled 2.5 per cent, after Japan's government reported retail sales fell 1.1 per cent in December from the month before. Adding to the gloom was the release of a survey confirming China's manufacturing contracted in January. Hong Kong's Hang Seng was down 0.5 per cent Markets in Taiwan and South Korea were closed on the eve of the lunar new year . ( Associated Press ) (Lookahead) Statistics Canada releases the payroll employment, earnings and hours figures for November. More Canadian corporate earnings results will come today. Fourth-quarter results will be released from such companies as C-N Railway , Imperial Oil and PotashCorp of Saskatchewan . ( The Canadian Press ) (Toyota-Recall?) Toyota says it's in talks with the U-S National Highway Traffic Safety Administration about a possible recall in Canada and the U-S. It would cover several models, including the popular Camry, due to a potential problem with seat fabric. The Japanese automaker has already halted sales of vehicles equipped with seat heaters because the fabric may not clear flammability standards. Affected models are the Camry sedan and hybrid, the Avalon sedan and hybrid, Corolla subcompact, Sienna minivan, Tundra and Tacoma trucks sold since August 2012 , when the fabric supplier was changed. It's not known yet how many vehicles are affected. ( Associated Press ) (Keystone-Report) Canadian officials are encouraged by an upcoming U-S State Department report on the Keystone X-L pipeline. They say they're cautiously optimistic by what they're hearing about a long-awaited report on the environmental impact of the pipeline that could be released soon. Those sources in Washington and Ottawa have been told the report could be ready for release within a few days. And one unnamed diplomat says what they're hearing is that it's going to be ``positive for the project -- and therefore positive for Canada .'' ( The Canadian Press ) (US-Target-Breach) U-S retail giant Target says its investigation has found that hackers accessed its system with stolen credentials from a vendor. They accessed Target's systems and pilfered about 40-million debit and credit card numbers as well as personal information for another 70-million people. Spokeswoman Molly Snyder didn't comment on further details, such as the vendor's identity or how the hackers stole the credentials. U-S Attorney General Eric Holder says the Justice Department is committed to tracking down the thieves. ( Associated Press ) (Detroit-Bankruptcy-Adjustment-Plan) A preliminary adjustment plan for Detroit's bankruptcy restructuring has been sent to the city's creditors. The state-appointed emergency manager overseeing the Motor City's finances handed out copies of his plan to restructure the debt. It could be modified before being reviewed by a court. Details of the plan were not released publicly and it is expected to be filed with the court in about two weeks. ( Associated Press ) ( US-Flood-Insurance ) Under legislation speeding through the U-S Senate , hundreds of thousands of American homeowners would get a reprieve from higher flood insurance premiums. The bill faces a rockier road in the House, where a more modest plan is being developed. It would ease the impact of Congress's overhaul of the federal flood insurance program two years ago. The legislation would delay for up to four years huge premium increases now set to phase in next year under updated government flood maps. ( Associated Press ) (The Business Report by Karen Rebot and Chris Mayberry )


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Source: Canadian Press Broadcast Wire (Canada)


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