PRESS DIGEST - Canada - Oct 22

Oct 22 (Reuters) - The following are top stories from selected Canadian newspapers. Reuters has not verified these stories and does not vouch for their accuracy.

THE GLOBE AND MAIL:

- Just a day after the Bank of Canada warned that the strong dollar was taking the steam out of the rebound, Prime Minister Stephen Harper said that there are signs of a "budding recovery" but Canada could still see more job losses.

BUSINESS:

- China's economy charged ahead in the third quarter, expanding by 8.9 per cent thanks to lavish stimulus spending that sparked a boom in construction, share prices and consumer spending.

Growth for the first nine months of the year was 7.7 per cent, the National Statistics Bureau reported Thursday. Officials have said they expect the economy to at least reach the annual growth target of 8 percent.

- For Microsoft Corp (MSFT.O), Windows 7 represents a make-it-or-break-it moment for the company's immediate future, as it tries to convince businesses and consumers -- most of whom did not make the transition to Vista -- that the new operating system isn't just better built, it's also designed to save customers money.

NATIONAL POST:

- Pakistani helicopter gunships attacked Taliban bases near the Afghan border on Wednesday as authorities ordered educational institutions closed amid fears of retaliatory terrorist strikes.

FINANCIAL POST:

- Stephen Harper, the prime minister, says the world is in a rare period where budget deficits are not bad, but necessary to pull the world out of recession. Nevertheless, he says he is concerned about winding back spending and the risks from outside Canada that could push the country into another recession.

- Microsoft Corp (MSFT.O) and Google Inc (GOOG.O) have sealed separate agreements to access real-time content from Web phenomenon Twitter, intensifying their battle for a search market that Google now dominates.