U.S. stock futures indicated a higher open Wednesday, as traders viewed progress toward a bailout program for U.S. auto makers.

U.S. President George Bush and top Democrats reached an agreement on a US$15 billion rescue package for the big three car makers, according to The Wall Street Journal.

Here at home, Canada’s net international indebtedness fell to $58.4 billion at the end of the third quarter, as the value of Canada’s foreign assets increased more than its liabilities, Statistics Canada said. The drop was largely attributable to higher Canadian direct investment abroad, the goverment agency said.

Separately, StatsCan said labour productivity in the business sector remained unchanged in the third quarter of 2008 after declining for four consecutive quarters.

Meanwhile, unit labour costs, a barometer of long-term inflationary pressure, slowed substantially as growth in hourly wages decelerated.

The Canadian dollar opened at US79.53¢, up 0.45 cent after losing 0.66 cent yesterday as the Bank of Canada cut its key policy interest rate by 75 basis points.

In other corporate news, George Weston Ltd. is selling its fresh bread and baked goods business in the United States to Mexico’s Grupo Bimbo for US$2.5 billion, the company announced Wednesday.

Rio Tinto Group will cut 14,000 jobs worldwide and reduce capital investment as part of new measures to reduce its debt amid waning demand for iron ore and other metals, the mining company said Wednesday.

Much of the company’s debt is from its US$38.1 billion acquisition of Canadian company Alcan last year.

In earnings news, MDS disclosed its revenue and operating profit are below previous guidance, and it is taking a US$260-million-tax writeoff of the MAPLE medical-isotope reactor, along with a goodwill writedown of as much as $370 million at its MDS Pharma Services division.

Eastman Kodak pulled its near-term forecast and announced moves to cuts costs.

In commodities news, Nymex crude oil futures rose more than $2 in European trade. The front-month January light, sweet, crude contract on the New York Mercantile Exchange was trading US$2.54 higher at US$44.61 a barrel.

Overseas, shares of auto makers drove Asian markets higher.

In Tokyo, the Nikkei 225 Stock Average rose 255.43 point, or 3.2%, to 8,660.24, on signs that U.S. lawmakers are moving closer to a conditional bailout of the country’s auto sector.

Japanese auto maker shares in particular gained sharply on growing hopes for a U.S. auto sector bailout. Toyota Motor rose 6.5% and Honda Motor jumped 10%.

Hong Kong’s Hang Seng Index rose 5.6% to 15,577.74, its highest closing level in nearly two months.

European markets, though, were flat in midday trading.

The FTSE-100 was down 0.1% early in the afternoon in London, while Germany’s DAX was down 0.5% and the French CAC-40 was flat.

IE