News

Behind today's headlines - Stories Report on Business is following :

Chrysler unveils its rebirth

Chrysler Group LLC is unveiling an ambitious five-year plan today in Detroit. This morning, Chrysler said it will introduce a new mid-size car, a sub-compact hatchback and a full-sized sedan for its Dodge brand in the 2012-2013 time frame. It's also upgrading its Dodge Caravan minivan in the fourth quarter of next year, which means an investment for the Windsor, Ont., assembly plant. Follow breaking news by Globe and Mail auto writer Greg Keenan from the day-long event in Detroit. Read the story

Background : Chrysler's revival to lean heavily on Fiat

New York sues Intel

Intel's troubles are far from over. New York Attorney General Andrew Cuomo today filed an antitrust lawsuit against the giant chipmaker, alleging the company used "illegal threats and collusion" to dominate its market. Mr. Cuomo alleged the company tried to prevent the sale of competing products through billions in kickbacks to computer makers. Intel has already paid a hefty fine to settle with EU regulators, and has denied all wrongdoing. Read the story

For Fiorina, life after HP

For months, observers have speculated on what Carly Fiorina would do after her star performance as chief of Hewlett-Packard. It became clear today with her announcement that she's running for the U.S. Senate seat now held by Barbara Boxer. Ms. Fiorina, who also acted as economic adviser to John McCain during his failed presidential run, said she wants to create jobs, slash government spending and improve the health care system. Ms. Fiorina, 55, must first win the Republican primary.

Business confidence on the rise

Canada's corporate leaders now see an end to the recession after "a year of despondency." The Conference Board of Canada said today that business confidence was close to its best level in two years in the third quarter. This follows a similar finding by the Bank of Canada in October, indicating the economy continues to gather steam. Read the story

U.S. service sector continues to grow

This morning's report on the U.S. services sector highlights the weakness of the economic rebound after a brutal recession. The Institute for Supply Management, whose reports are watched keenly by the markets, said its non-manufacturing index dipped last month to 50.6 from 50.9 a month earlier. This index is a gauge of key drivers of the economy, and had been expected to rise to 52. The 50 mark denotes expansion or contraction. Hopes had been high given the ISM's manufacturing report earlier in the week, which showed factory activity picking up sharply. Still, it did mark another month of growth and, said TD Securities economics strategist Ian Pollick, "in the final analysis, despite the drop in the headline index, the fact that it remains above the 50 threshold suggests that the recovery in the non-factory sectors remains largely intact."

U.S. jobs crisis eases, but unemployment a major problem

The widely watched ADP Employer Services jobs report this morning shows U.S. companies slashed an estimated 203,000 jobs in October. This was the best showing in more than a year. And while it points to the crisis easing, it shows that where unemployment is concerned, the United States is still reeling from millions of job losses. And it signals why the Federal Reserve, which ends its two-day meeting with a policy announcement at 2:15 p.m. ET today, is expected to keep interest rates at historic lows for some time yet. The ADP report is seen as a pointer to the U.S. governments employment report Friday.

Markets await Federal Reserve decision

While the Federal Reserve is not expected to change interest rates with its policy announcement this afternoon, markets will be watching its statement closely for clues. Like other major central banks, the Fed has held interest rates at historic lows as it works aggressively to help rebuild the U.S. economy. Today's meeting, along with those Thursday of the European Central Bank and Bank of England, follows the Reserve Bank of Australia's decision to raise its benchmark rate by a quarter of a percentage point on Tuesday, its second rate hike in as many months. But observers do not expect other central banks to follow its move. Australia is in a unique position, having escaped a recession. As for Ben Bernanke and his Fed colleagues at 2:15 p.m. ET this afternoon, Toronto-Dominion Bank economists said in a research note, “We expect the economic outlook to remain largely intact, with the Fed reiterating the improved outlook for the U.S. economy, reflecting in part the encouraging tone in the recent economic reports, and in particular the policy-induced surge in GDP in [the third quarter].”

Background : Manufacturing on the upswing globally

GM Opel decision angers Germany

General Motors Co.'s decision to pull Opel from Magna International Inc.'s grasp has sparked a backlash. Late Tuesday, after months of heated negotiations that involved multiple bidders, European governments and labour groups, GM's board decided to keep the embattled Opel unit, denying Frank Stronach's Magna, a global auto parts manufacturer, the chance to become a full-scale car producer. As the news spread across Europe today, the reaction was harsh. Labour leader Klaus Franz pulled back the huge concessions unions had offered, and politicians in Germany, which houses the bulk of Opel's operations, lashed out at the U.S. auto maker. Said Economy Minister Rainer Bruederle: "General Motors' behaviour towards workers is completely unacceptable. General Motors' behaviour towards Germany is completely unacceptable" Read the story

German unions plan a warning strike

Russian Prime Minister Vladimir Putin also spoke out, signalling that the fight is not over. Russia's Sberbank is part of the Magna-led bid, and Mr. Putin noted that a trust that oversees Opel, and not the GM board, should decide what happens next.

Related: GM's board scuttles Magna deal

Asia leads world economic growth

On the economic front today: Asia continues to lead the world out of its slump. The World Bank today boosted its outlook for growth in East Asia, primarily because of China's spectacular rebound. The organization forecast East Asian economies will grow 6.7 per cent this year and a stunning 7.8 per cent next. However, projected growth comes in at only 1.1 per cent this year and 4.5 per cent next when China is factored out. Bank of Japan Governor Masaaki Shirakawa said his central bank will hold interest rates near zero despite an improving economy.

Dr. Doom got it wrong, Rogers says

Nouriel Roubini, the New York University professor dubbed Dr. Doom, has been making headlines of late with warnings about potential asset bubbles. On Bloomberg Television today, though, Jim Rogers, said Mr. Roubini is wrong. Commodities, he said, remain down from their records and the stock markets are not on the brink. "What bubble? It's clear Mr. Roubini hasn't done his homework, yet again," said the chairman of Rogers Holdings. "… It's not a bubble if something is up 100 per cent this year, but down 70 per cent from its high. That's not a bubble, that's a good year."

Gold reaches new heights

Gold continues to surge today, eclipsing Tuesday's previous high. Gold futures topped $1,080 (U.S.) an ounce this morning as it continued its climb after the surprise purchase by India's central bank of 200 tonnes of bullion from the International Monetary Fund for $6.7-billion.

Related : India shining: Golden sale heralds an economic force

Toyota out of F1

Formula One racing is being hit as its sponsors pull back during the crisis. Already, Honda Motor Co. pulled out of F1, and tire maker Bridgestone Corp. said it would not renew its F1 tire deal when it expires. This morning, Toyota, hurt by the recession and a stronger yen, said it, too, is pulling out given the economic climate.

World of Warcraft sparks China fight

Reports from Beijing today are shedding light on a strange fight between Chinese regulators involving the popular online game World of Warcraft. Unlike past cases involving the Internet, this battle is not about China battling outside forces, but rather an internal fight among bureaucrats. The Associated Press says the Chinese bureaus that licenses publishers said the Chinese operator of the game did not get the approval needed, and must refrain from signing customers. But the Ministry of Culture asserted that it is the proper regulator, and that all was, in fact, in order. For China's public, it is a look into the fights between bureaucrats over who regulates the Internet.

In today's Report on Business

Mountain Equipment Co-op raises ire of bicycle industry

Buffett's Burlington Northern railway deal an ‘all-in wager' on the U.S. economy

OPTI Canada on lookout for buyer