TORONTO, Sept 17 (Reuters) - Canada’s S&P/TSX composite index .GSPTSE may slip for a third consecutive session on Wednesday as financial turmoil still dominates on Wall Street but higher oil prices could provide support for Toronto shares. Here is some of the news that could influence the market.
AMERICAN INTERNATIONAL GROUP INC (AIG.N)
The U.S. government agreed to rescue insurer AIG with a $85 billion loan from the New York Federal Reserve to stave off bankruptcy that brought a measure of calm to jittery markets. For details, see [ID:nN13574113] The move comes after U.S. authorities refused to bail out investment bank Lehman Brothers Holdings Inc LEH.N, which filed for bankruptcy protection.
Nortel Networks Corp NT.TO cuts its revenue forecast for 2008 and forecast lower third-quarter sales than analysts expectations, citing significant pressure as customers reduce their capital expenditures. [ID:nN17491200]
MANULIFE FINANCIAL CORP (MFC.TO)
Manulife outlined its own exposure to AIG and to Lehman Brothers. For AIG, it had fixed-income investments in the holding company with a par value of $38 million, and other exposures of $9 million. It also had fixed-income investments with par value of $190 million in AIG’s American General subsidiary, and $15 million in Sun America. [ID:nN16436192]
OIL CLc1 RISES TO $94
Oil rose to $94 a barrel after the U.S. rescue of AIG seemed to calm nervous global financial markets, following from a cross-market selloff that pushed it to a seven-month low. [ID:nSP358395]
Gold climbed, above $780 an ounce, in tandem with other commodities as battered financial markets got a reprieve after the U.S. government threw AIG a lifeline [ID:nLH518535], while base metals were flat to lower. [ID:nLH423193]
TEMBEC INC (TMB.TO)
Tembec Inc curtails pulp production at its Matane plant and said the plant will stop production Sept 21 and resume operations Sept 28. The company said the curtailment will result in about 5,000 tonnes of product not being produced, and shutdowns to date will reduce total annual production by 21,500 tonnes. [ID:nWNA4138]
Biovail Corp said it paid $100 million to acquire Prestwick Pharmaceutical, and said the transaction add to both earnings per share and cash flows in 2009. [ID:nWNAB1631] ($1=$1.07 Canadian) (Reporting by Jennifer Kwan; Editing by Frank McGurty)