By Jim Finkle 37 minutes ago BOSTON (Reuters) - International Business Machines Corp (IBM. N), the biggest technology services company, said it expects to meet long-term profit forecasts despite economic turmoil, partly due to continued growth in emerging markets. The company also said it had good access to funds, a strong liquidity position, and $10 billion in cash -- unchanged from June -- on top of its $10 billion revolving credit facility.

By Kevin Krolicki and Jui Chakravorty 8 minutes ago DETROIT/NEW YORK (Reuters) - Chrysler LLC has had talks with Renault SA (RENA. PA) about a tie-up or a sale, one of a series of potential deals under urgent review that include consideration of breaking up the No. 3 U. S. automaker just over a year after it was taken private, people familiar with the talks said on Thursday.

Thu Oct 16, 2:41 PM ET MEXICO CITY (AFP) - As stock markets sink and fears grow of a global recession, Latin America is banking on gains as well as losses from tourists tightening their purse strings. From Mexico's Mayan pyramids to Chilean glaciers, with beaches, jungle and ancient cities in between, the region is a major draw for foreign visitors, particularly from United States.

By Eric Auchard 11 minutes ago SAN FRANCISCO (Reuters) - Google Inc (GOOG. O) quarterly profit surpassed Wall Street forecasts, sending shares up more than 10 percent as the Internet search and advertising leader withstood deepening economic turmoil around the globe. Web traffic and revenue growth were strong in all major parts of the world and searches were up for almost every industry using Google, Chief Executive Eric Schmidt said.

By Jonathan Stempel and Dan Wilchins 1 hour, 1 minute ago NEW YORK (Reuters) - Housing and credit market turmoil drove Citigroup Inc to its fourth straight quarterly loss and $13 billion of write-downs and credit losses, but the giant U. S. bank still wants to acquire deposits after its bid to acquire much of Wachovia Corp failed.

By Joseph A. Giannone 41 minutes ago NEW YORK (Reuters) - American International Group, the insurance giant that drew fire for executive "golden parachutes" and an ill-timed junket even as it receives a massive taxpayer bailout, has agreed to mend its ways. AIG (AIG. N) promised to recover executive payments and other compensation, cancel perks and institute reforms one day after New York Attorney General Andrew Cuomo threatened legal action over its controversial spending.

Reuters - Financial institutions ran to their lender of last resort for record amounts of cash in the latest week, under extreme pressure from the worst global financial crisis in a generation, Federal Reserve data showed on Thursday.

By ELLEN SIMON, AP Business Writer 12 minutes ago NEW YORK - A stock market as difficult to fathom as it is volatile pulled off another stunning U-turn on Thursday, transforming a 380-point loss for the Dow Jones industrials into a 401-point gain. Was it the government's bailout beginning to have an effect? The credit markets finally beginning to loosen up? Investors looking for a bottom in stocks? Wall Street seemed sure of this much: The whipsawing will continue.

29 minutes ago BOSTON (Reuters) - International Business Machines Corp (IBM. N), the world's biggest technology services company, posted a higher quarterly profit on Thursday as an increase in services and software revenue offset a decline in computer hardware sales. The results confirmed preliminary figures released last week, when it posted a higher-than-expected third-quarter profit and reaffirmed its full-year outlook despite weaker quarterly revenue due to a stronger dollar.

By Eric Auchard 8 minutes ago SAN FRANCISCO (Reuters) - Google Inc (GOOG. O) quarterly profit beat Wall Street targets, sending shares up 6 percent as the Internet search and advertising leader withstood deepening economic turmoil. Web traffic and revenue growth were strong in all major parts of the world, Chief Executive Eric Schmidt said in a statement.

By Kristina Cooke 8 minutes ago NEW YORK (Reuters) - Stocks leaped on Thursday, as investors snapped up beaten-down shares the day after Wall Street's worst day since the 1987 stock market crash while consumer companies gained as the price of oil fell. Discount retailers, such as Wal-Mart and healthcare companies drove indexes higher as investors bet their profits will prove more resilient in an economic downturn.

Reuters - General Motors Corp will lay off 1,500 hourly workers at plants in Michigan and Delaware where it builds pickup trucks, large cars and a two-seat roadster due to slowing demand, a spokesman said on Thursday.

8 minutes ago NEW YORK (Reuters) - Stocks rallied briefly in volatile trade on Thursday as investors snapped up beaten-down shares, while a report saying Microsoft may pursue a search partnership with Yahoo pulled the Nasdaq higher. Bloomberg news service also quoted Microsoft chief executive Steve Ballmer as saying a Yahoo takeover deal may still make economic sense.

By Leah Schnurr 24 minutes ago NEW YORK (Reuters) - The Dow and the S&P 500 slipped in a choppy session on Thursday, pressured by nervousness that the economy might be sliding into a recession. But the Nasdaq pushed higher after Microsoft Corp Chief Executive Steve Ballmer said a Web search deal with Yahoo makes economic sense, though the two sides are not in any discussions.

9 minutes ago NEW YORK (Reuters) - Microsoft Corp Chief Executive Steve Ballmer said a Web search advertising deal with Yahoo Inc makes economic sense and may still be possible, though the two sides are not in any discussions. Shares of Yahoo jumped 12 percent on the news, as investors hoped Ballmer's comments could lead to the two sides returning to the negotiating table.

12 minutes ago NEW YORK (Reuters) - The Dow and S&P 500 stock indexes fell further in a choppy session on Thursday as concerns that the U. S. economy might be sliding into recession diminished investors' appetite for risk. The Nasdaq was little changed, falling back from an earlier rally after Microsoft Corp said it has no interest in acquiring Web company Yahoo.

AP - Nike Inc. has sued Wal-Mart Stores Inc., alleging the giant retailer is selling shoes that infringe on Nike's patented designs.

Reuters - The U.S. Securities and Exchange Commission has agreed to a request from banks that could allow them to delay write-downs on certain securities that have dropped in value due to the credit crisis.

11 minutes ago NEW YORK (Reuters) - Microsoft Corp (MSFT. O)'s CEO said on Thursday that the company may pursue a search partnership with Yahoo (YHOO. O) in the future, but no there are discussions now, Bloomberg reported. .

22 minutes ago NEW YORK (Reuters) - Shares of Yahoo Inc jumped 12 percent after Microsoft Corp Chief Executive Steve Ballmer reportedly said that a deal between the companies may still make economic sense for shareholders. According to a Bloomberg report, Ballmer told a Gartner Inc conference in Orlando, Florida, that while the companies may pursue a search partnership in the future, there are no discussions now.

By Jonathan Stempel and Dan Wilchins 26 minutes ago NEW YORK (Reuters) - Citigroup Inc, battered by the global credit crisis, posted its fourth straight quarterly loss on Thursday, hurt by more than $13 billion in loan losses and write-downs for complex and risky debt. The bank said it made good progress on shedding assets and cutting costs, including slashing 11,000 jobs since June, but added that tough credit and economic conditions worldwide could weigh on a variety of businesses, including investment banking and credit card lending.

By Ellis Mnyandu 15 minutes ago NEW YORK (Reuters) - Stocks slid on Thursday as signs of regional weakness in manufacturing and poor corporate results fueled recession fears, causing investors to reduce risk and join a global equity sell-off. Financial shares led Wall Street's losses and put the market on course to extend its rout a day after the benchmark S&P 500 had its worst tumble since the 1987 market crash.

14 minutes ago WASHINGTON (Reuters) - U. S. industrial production posted the biggest monthly decline since 1974 while consumer prices were flat in September, according to reports on Thursday that built a compelling argument for more interest rate cuts to slow a steep economic slide. Adding to the gloom, a survey of Mid-Atlantic factory activity in October plummeted to its lowest in 18 years.

Reuters - U.S. economic growth could be restrained for as long as a few years by "unprecedented" problems in financial markets, a top Federal Reserve policy-maker said on Thursday.

19 minutes ago WASHINGTON (Reuters) - Consumer prices were unexpectedly flat in September as energy costs fell while the latest jobless claims data indicated the labor market was still under pressure, government reports showed on Thursday. if(window. yzq_d==null)window. yzq_d=new Object(); window.

Reuters - Nike Inc has sued Wal-Mart Stores Inc , saying the world's largest retailer is selling athletic shoes that infringe on its design patents.

5 minutes ago NEW YORK (Reuters) - Stocks rose in volatile action after the open on Thursday, as investors were encouraged by signs of further thawing in the credit markets, but worries about a prolonged U. S. recession persisted. The Dow Jones industrial average rose 98. 92 points, or 1. 15 percent, to 8,676.

by Omar Hasan Thu Oct 16, 4:48 AM ET KUWAIT CITY (AFP) - Gulf stock markets fell on Thursday for a second day, led by a more than six percent plunge on the Dubai Financial Market, as recession fears continue to haunt the global economy. The DMF Index was trading down six percent at 3,2240. 00, while the other United Arab Emirates stock market, Abu Dhabi Securities Exchange saw its index drop 4.

8 minutes ago WASHINGTON (Reuters) - Consumer prices were unexpectedly flat on September as energy costs fell in new evidence that inflation pressures are easing, a government report showed on Thursday. Analysts polled by Reuters were expecting the Consumer Price Index to rise 0. 1 percent after a 0.

6 minutes ago NEW YORK (Reuters) - Stock index futures extended gains on Thursday as government data showed that the number of people filing new claims for jobless benefits slid in the latest week and core consumer prices moderated in September, raising hopes of another interest rate cut. S&P 500 futures jumped 22.

By SHINO YUASA, Associated Press Writer Thu Oct 16, 4:31 AM ET TOKYO - Japanese Prime Minister Taro Aso said Thursday the U. S. bank bailout was insufficient to quell investors' fears and the lack of confidence is contributing to the renewed plunge in global stock markets. "Since it was insufficient, the market is again falling sharply," Aso told lawmakers at the upper house budget committee in parliament.

By Jonathan Stempel and Dan Wilchins 9 minutes ago NEW YORK (Reuters) - Citigroup Inc, battered by the global credit crisis, posted its fourth straight quarterly loss on Thursday, hurt by more than $13 billion of credit costs and write-downs tied to complex and low-quality debt. The bank said it was making good progress on shedding assets and cutting costs.

Reuters - Nokia (NOK1V.HE) said on Thursday it will make a one-time payment of 1.7 billion euros ($2.29 billion) to mobile chipmaker Qualcomm as part its patent agreement with the U.S. firm. The top cell phone maker said the payment would be made during the fourth quarter and expensed quarterly over the term of the 15-year agreement that was first announced in July.

By Ellis Mnyandu 5 minutes ago NEW YORK (Reuters) - Stock index futures rose on Thursday as signs of further thawing in the credit markets offset a spate of mixed earnings reports that did little to dispel recession fears. The cost for banks to borrow from among each other slipped, indicating that efforts to loosen up credit may be working in the most important, short-term markets.

Reuters - Bank of New York Mellon Corp's third-quarter profit fell 53 percent, hurt by a big charge to bail out funds affected by Lehman Brothers Holdings Inc's bankruptcy, the bank said on Thursday.

32 minutes ago NEW YORK (Reuters) - JPMorgan Chase & Co (JPM. N) has become the largest U. S. bank by assets, surpassing long-time leader Citigroup Inc (C. N). Citigroup on Thursday said it ended September with $2. 05 trillion of assets, while a day earlier JPMorgan said it ended the month with $2.

4 minutes ago NEW YORK (Reuters) - Merrill Lynch & Co reported a third-quarter net loss of $7. 5 billion on write-downs and credit losses on complex debt securities. The brokerage house, which last month accepted a takeover bid from Bank of America, said on Thursday that the net loss applicable to common shareholders widened to $5.

22 minutes ago NEW YORK (Reuters) - Citigroup Inc (C. N) on Thursday posted its fourth straight quarterly loss, hurt by increasing credit losses and write-downs tied to complex and low quality debt. The net loss totaled $2. 82 billion, or 60 cents per share, and compared with a profit of $2.

23 minutes ago BANGALORE (Reuters) - Merrill Lynch & Co Inc (MER. N) reported a third quarter net loss from continuing operations of $5. 1 billion on Thursday. * Q3 loss per share $5. 56 from continuing operations * Q3 loss per share $5. 58 * Qtrly net write-downs of $5. 7 billion * Qtrly net gains of $2.

10 minutes ago NEW YORK (Reuters) - Stock index futures cut gains in choppy trade on Thursday as persistent worries that the global economy is headed for recession drove a global equity sell-off and investors turned cautious before key economic reports. Recession fears tempered optimism fueled by a further decline in the cost for banks to borrow from each other.

By Jeremy Gaunt and Ingrid Melander 7 minutes ago LONDON/BRUSSELS (Reuters) - U. S. and Europe Union leaders agreed on Thursday to meet at the weekend to prepare for a global summit to overhaul the world's financial system, while fears of global recession continued to rattle markets. Central banks renewed efforts to free up liquidity and unblock frozen lending, with further action from Switzerland, Britain and the European Central Bank.

Thu Oct 16, 3:23 AM ET LONDON (AFP) - The London stock market shed 2. 51 percent to 3,977. 25 points shortly after the start of trading on Thursday after closing down more than seven percent a day earlier on recession fears. London's FTSE 100 index of leading shares had opened down 0. 90 percent at 4,043.

Thu Oct 16, 2:43 AM ET TOKYO (AFP) - Tokyo's Nikkei stock index plunged more than 11 percent Thursday, the biggest loss in two decades, as growing fears of a global recession hammered world markets. The benchmark index lost 1,089. 02 points, or 11. 41 percent, to end at 8,458. 45, wiping out most of its gains earlier in the week.

By Sitaraman Shankar 5 minutes ago LONDON (Reuters) - Shares across the world fell for the second straight day on Thursday, pummeled by signs the world's biggest economies were headed for recession after a month of financial sector turmoil. European stocks fell 3. 3 percent early after Wall Street and Japan's Nikkei both suffered their worst one-day losses since the stock market crash of 1987, and the MSCI World stock index traded 3.

By David Dolan 1 hour, 30 minutes ago TOKYO (Reuters) - Citigroup (C. N) will delay a planned merger of two of its Japanese units, the Nikkei newspaper said on Thursday, the latest sign the subprime-hit U. S. bank is looking to trim costs from its Tokyo operations. Separately, Citigroup's Japanese holding company said on Wednesday it would sell 91 percent of its stake in investment company Nikko Antfactory to investors including unlisted Norinchukin Bank and Mitsubishi Corp (8058.

By Sam Cage and Sven Egenter 23 minutes ago BERNE (Reuters) - Switzerland is taking a near 10 percent stake in UBS as the Swiss bank and its rival Credit Suisse said on Thursday they were raising billions of francs to shore them up against the financial crisis. UBS AG (UBSN. VX) is getting a 6 billion Swiss francs injection from the state in return for a 9.

By Jeremy Gaunt and Tony Munroe 11 minutes ago LONDON/HONG KONG (Reuters) - The global financial crisis shifted gears on Thursday with fears of recession battering financial markets even as governments sought yet more action to pull the world economy from the brink of collapse. European Union leaders, meeting in Brussels, were to call for action to combat economic decline, including support for industry, according to a summit draft obtained by Reuters.

47 minutes ago ZURICH (Reuters) - Switzerland's two largest banks will receive emergency funding from the country's government and other investors to shore them up against the financial crisis, they said on Thursday. The Swiss government will give UBS, the country's largest bank, a capital injection of 6 billion Swiss francs ($5.

17 minutes ago ZURICH (Reuters) - UBS AG (UBSN. VX) will get a capital injection of 6 billion Swiss francs ($5. 3 billion) from the government in the form of mandatory convertible notes, the Swiss bank said on Thursday. UBS has also reached an agreement with the Swiss National Bank to transfer up $60 billion of currently illiquid securities and other assets from its balance sheet to a separate fund entity.

By Kristina Cooke Wed Oct 15, 8:34 PM ET NEW YORK (Reuters) - For the past two weeks, Kathryn Morrison and her husband have been shaken awake at night by visions of crashing stock markets and evaporating retirement plans. Harvey Goldberg liquidated his account when the Dow Jones industrial average was at 12,300, but his financial advisor persuaded him to reinvest.

Reuters - Insurance giant American International Group Inc is spending money to lobby states to soften new controls on the mortgage industry, the Wall Street Journal said.

By Nicole Maestri 12 minutes ago NEW YORK (Reuters) - U. S. shoppers will spend more on holiday-related purchases this year, but that spending will increase by the lowest level in at least six years, according to a survey released by an industry trade group on Thursday. U. S. consumers plan to spend an average of $832.

By Tony Munroe 10 minutes ago HONG KONG (Reuters) - A warning of tough times ahead by Fed Chairman Ben Bernanke sent global markets sharply lower, with Tokyo shares tumbling 10 percent on Thursday, as investors brace for looming recession. Shrugging-off recent optimism about massive government efforts to prop up the global financial system, investors fled from stocks, commodities and other risky assets to the relative safety of cash.

By Kevin Plumberg 1 hour, 29 minutes ago HONG KONG (Reuters) - Japan's Nikkei share average tumbled almost 10 percent and oil prices dropped to a one-year low on Thursday after downbeat U. S. economic data spread fears of a more protracted and sharp global slowdown than initially expected. Optimism about the stabilization in money markets has been swept aside and widespread selling of global equities has resumed in earnest as the quarterly results season gets underway and reports filter in about sharp losses at hedge funds.

by Virginie Montet 12 minutes ago WASHINGTON (AFP) - US retailers are bracing for a grim Christmas shopping season as Americans rein in their spending and try to weather the storm in the financial markets and a suffocating credit squeeze. Government data released Wednesday showed US retail sales slumped 1.

By Alexandria Sage 1 hour, 57 minutes ago SAN FRANCISCO (Reuters) - Online auction leader eBay Inc (EBAY. O) gave a disappointing forecast that promised little holiday cheer and said it was suffering from a widespread consumer spending slowdown that would drag on into 2009, sending its shares down 3.

By TIM PARADIS, AP Business Writer Wed Oct 15, 6:31 PM ET NEW YORK - Investors agonizing over a faltering economy sent the stock market plunging all over again Wednesday after a stream of disheartening data convinced Wall Street that a recession, if not already here, is inevitable. The market's despair propelled the Dow Jones industrials down 733 points to their second-largest point loss ever, and the major indexes all lost at least 7 percent.

Reuters - Big investors will be required to disclose their short positions to the U.S. Securities and Exchange Commission under an interim final rule issued by the SEC on Wednesday night.

By Alexandria Sage 15 minutes ago SAN FRANCISCO (Reuters) - Online auction leader EBay Inc (EBAY. O) gave a disappointing forecast and said it was suffering from a consumer spending slowdown that would drag on into 2009, sending its shares down more than 5 percent. The after-hours sell-off extended the stock's 14 percent drop in the regular session on Wednesday, fueled by investor concerns the company would be hit hard by a global recession as it tries to woo back buyers and sellers.

By Pedro Nicolaci da Costa 15 minutes ago NEW YORK (Reuters) - Federal Reserve Chairman Ben Bernanke said on Wednesday that turmoil in credit markets poses a "significant threat" to the U. S. economy, suggesting more interest-rate cuts could be coming to help stave off a deep downturn.

By Kristina Cooke 26 minutes ago NEW YORK (Reuters) - Wall Street had its worst day since the 1987 stock market crash on Wednesday, as bleak economic data fed worries that all the efforts to unlock credit markets may not stave off a severe recession. Federal Reserve Chairman Ben Bernanke added to those concerns when he said the economy faced a "significant threat" from paralyzed credit markets.

AP - With October auto sales expected to fall short of September's 15-year low, General Motors Corp. is launching a campaign this week to reach people who have stopped looking for cars out of fear that they can't get a loan.

4 minutes ago NEW YORK (Reuters) - Stocks tumbled on Wednesday as bleak economic data fed worries that all the efforts to unlock credit markets may not stave off a severe recession. The Dow Jones industrial average sank 733. 08 points, or 7. 87 percent, to finish unofficially at 8,577. 91, based on the latest available data.

35 minutes ago SAN FRANCISCO (Reuters) - EBay Inc (EBAY. O) warned on Wednesday that its full-year revenues would fall below its previous forecast as the Internet company restructures to reinvigorate growth in its main online auctions business. The company's shares fell 12 percent in extended trading.

2 hours, 28 minutes ago LONDON (AFP) - Mounting fears that global financial turmoil will now spark a recession in Europe and the United States rattled investors and sent share prices plunging on Wednesday. Market analysts said that while extraordinary efforts by governments to shore up shaky banks may have boosted confidence earlier this week, they are now seen as unlikely to head off a US and European recession.

Reuters - French power company EDF said on Wednesday it would not make a competing bid for U.S. power company Constellation Energy Group Inc because the credit crisis has made financing more difficult to obtain.

5 minutes ago NEW YORK (Reuters) - Federal investigators have opened an investigation into the collapse of Washington Mutual Inc, the largest U. S. banking failure. Jeffrey Sullivan, U. S. attorney for the western district of Washington, said in a statement on Wednesday that he has set up a task force that includes investigators from the FBI, the U.

by Omar Hasan Wed Oct 15, 10:50 AM ET KUWAIT CITY (AFP) - Saudi shares rose slightly on Wednesday as other Arab stock markets closed lower in line with bourses in Europe and Asia, following two days of strong gains, on renewed concerns over the global financial crisis. Performance was mixed, with some markets extending early losses and others clawing back some negative territory.

Reuters - French state-controlled electricity giant EDF said on Wednesday it had dropped plans to table a new bid for Constellation Energy as the credit crisis has made corporate financing more difficult to obtain.

18 minutes ago NEW YORK (Reuters) - Stocks extended losses in afternoon trading on Wednesday, after the Federal Reserve said economic activity weakened across the United States in September as businesses rethought capital investments, and consumers curtailed spending. Stocks had already been sharply lower as investors worried that global efforts to unlock credit markets would not prevent recession and Fed Chairman Ben Bernanke acknowledged the U.

By Leah Schnurr 5 minutes ago NEW YORK (Reuters) - Stocks slid on Wednesday as investors worried that efforts to untangle credit markets would not prevent recession and Federal Reserve Chairman Ben Bernanke acknowledged that the economy faced a significant threat. The broad Standard & Poor's 500 stock index dropped more than 6 percent.

23 minutes ago WASHINGTON (Reuters) - Economic activity weakened across the United States in September as businesses revised capital investments, consumers curtailed spending and the general outlook darkened, the Federal Reserve said on Wednesday. "Economic activity weakened in September across all twelve Federal Reserve Districts," the Fed said in its Beige Book report on the state of the economy through October 6.

10 minutes ago NEW YORK (Reuters) - Stocks fell to session lows on Wednesday, with the benchmark S&P 500 briefly tumbling more than 5 percent, after Federal Reserve Chairman Ben Bernanke said the economy faces a significant threat from credit market turmoil. The Dow Jones industrial average (. DJI) was down 373.

By Eddie Evans and Paul Taylor 23 minutes ago NEW YORK/BRUSSELS (Reuters) - European leaders called on Wednesday for a new world financial order to prevent future financial crises, as growing signs of global recession damped optimism over government efforts to bail out banks. The United States reported its biggest monthly decline in retail sales in more than three years, and Europe offered negative economic data and outlooks of its own.

11 minutes ago NEW YORK (Reuters) - The turmoil in credit markets poses a "significant threat" to an already slowing U. S. economy, Federal Reserve Chairman Ben Bernanke said on Wednesday, suggesting an openness to further interest-rate cuts. In remarks to the Economic Club of New York, Bernanke said it will take some time to restore normal flows of credit.

By Ellis Mnyandu 21 minutes ago NEW YORK (Reuters) - Stocks slid on Wednesday as investors worried that efforts to ease the credit crisis would not avert a recession, overshadowing solid profits from Coca-Cola Co (KO. N) and Intel Corp (INTC. O). Investors' mood soured when a government report showed that sales at U.

By Emily Kaiser 23 minutes ago WASHINGTON (Reuters) - Retail sales last month dropped the most in more than three years while a measure of New York state manufacturing hit its lowest since the index started in 2001, intensifying recession fears. A wholesale inflation index eased, suggesting the Federal Reserve has room to lower benchmark interest rates further to try to prop up an increasingly shaky U.

By Martinne Geller 31 minutes ago NEW YORK (Reuters) - Coca-Cola Co (KO. N) posted a better-than-expected quarterly profit on strong international demand that offset a drop in volume at home, sending shares of the world's largest soft-drink maker up 6 percent. Coke's results on Wednesday bolstered investors' hopes that the company would prove resilient in a weak U.

By Elinor Comlay and Jonathan Stempel 13 minutes ago NEW YORK (Reuters) - JPMorgan Chase & Co (JPM. N) and Wells Fargo & Co (WFC. N) posted better-than-expected earnings on Wednesday despite higher credit losses, underlining their standing as among the strongest big banks in the battered U. S. financial sector.

17 minutes ago WASHINGTON (AFP) - US retail sales slumped 1. 2 percent in September, government data showed Wednesday in a sign of deeper troubles for an economy ailing from a financial market firestorm and tight credit. The drop in sales was the steepest since August 2005 and weaker than market expectations for a 0.

Wed Oct 15, 6:10 AM ET KUWAIT CITY (AFP) - Stock markets in the oil-rich Gulf states declined at the opening of trade on Wednesday, following two days of strong gains spurred by government moves to shore up the financial system. The Dubai Financial Market, which surged more than 22 percent over the past two days, was down by five percent at 3,518.

Reuters - JPMorgan Chase agreed to allow bankrupt savings and loan Washington Mutual Inc's parent company to access $4.4 billion of its funds that may be used to help pay creditors.

By Emily Kaiser 22 minutes ago WASHINGTON (Reuters) - Sales at retail stores recorded their biggest monthly drop in more than three years in September while a measure of inflation eased, according to government data on Wednesday that intensified recession fears. A gauge of manufacturing in New York State tumbled in October to the lowest since its inception in 2001, a report from the New York Federal Reserve Bank said.

By Ellis Mnyandu 13 minutes ago NEW YORK (Reuters) - Stock index futures fell on Wednesday as investors worried that efforts to ease the credit crisis would not avert a recession, overshadowing solid profits from Coca-Cola Co (KO. N), a bellwether for consumer spending. Investors were cautious before a deluge of economic reports, including September retail sales, and a speech by Federal Reserve Chairman Ben Bernanke.

14 minutes ago WASHINGTON (Reuters) - Sales at U. S. retailers posted the biggest monthly decline in more than three years in September, according to a government report on Wednesday that showed consumers struggling to cope with falling home and stock prices. Sales fell 1. 2 percent last month to a seasonally adjusted $375.

By Jonathan Stempel 10 minutes ago NEW YORK (Reuters) - Wells Fargo & Co (WFC. N), whose planned purchase of Wachovia Corp (WB. N) will create the largest U. S. retail branch banking network, said on Wednesday third-quarter profit fell 25 percent, hurt by higher credit losses and investment write-downs.

by Phil Hazlewood Wed Oct 15, 4:09 AM ET MUMBAI (AFP) - From his base in India's financial capital Mumbai, Raj Kumar Sharma has been tracking the turbulence in the world stock markets and has come to one firm conclusion -- it was written in the stars. As an astro-finance specialist, he has made a career on predicting whether the Bombay Stock Exchange, Nasdaq, Dow Jones or FTSE-100 will go up or down by studying favourable or unfavourable planetary alignments.

Reuters - Coca-Cola Co on Wednesday reported third quarter and year-to-date results of $0.81 a share.

Reuters - JPMorgan Chase & Co's third-quarter profit fell 84 percent, due to mark-downs on underperforming loans in its leveraged lending and mortgage-related portfolios, the bank said on Wednesday.

16 minutes ago NEW YORK (Reuters) - Coca-Cola Co (KO. N) reported better-than-expected quarterly profit on Wednesday as strong international demand offset falling volume at home, sending its shares up nearly 6 percent. The world's largest soft drink maker said net income for the third quarter ended on September 26 rose to $1.

AP - JPMorgan Chase & Co.'s profit tumbled 84 percent in the third quarter after it took big hits from souring mortgage investments, leveraged loans and home loans.

By Veronica Brown 3 minutes ago LONDON (Reuters) - Risk aversion wrestled stock markets down on Wednesday, snuffing out a two-day rally as investors returned to last week's rattled state even after government bank bailouts took the edge off money market stress. The yen and gold prices rose, while government bonds also climbed in a fresh bid to unload risk on the reality of recession despite trillions of dollars pledged to recapitalize banks and stem the worst financial crisis since the 1930s.

Reuters - U.S. private equity giant Blackstone Group said on Wednesday that it still aims to complete a pair of property deals in Shanghai, although a company official said valuations in China need to come down and regulations should be friendlier to foreign investors.

AP - JPMorgan Chase & Co. says its profit tumbled 84 percent in the third quarter after it took big hits from souring mortgage investments, leveraged loans and home loans.

By Megan Davies 17 minutes ago DUBAI (Reuters) - Carlyle Group (CYL. UL) co-founder David Rubenstein said on Wednesday that he saw great opportunity to invest in financial assets affected by the credit crunch, and said the U. S. government's actions could help free up availability of leveraged buyout debt in the coming months.

37 minutes ago LONDON (Reuters) - Stock futures are pointing to a lower open on Wall Street, following Tuesday's decline, as worries on the economy and corporate profits begin to outweigh positive sentiment from the banking bailout plan. * At 5:55 a. m. EDT, Dow Jones futures and S&P 500 futures were down 1.

26 minutes ago NEW YORK (Reuters) - The Dow and the S&P 500 stock index futures pared losses on Wednesday after bank JPMorgan Chase (JPM. N) and Coca-Cola (KO. N) posted quarterly results. The world's largest soft-drink maker's profit beat Wall Street's estimates. Nasdaq stock index futures rose a day after chip maker Intel Corp (INTC.

By Ian Chua 35 minutes ago LONDON (Reuters) - Signs of renewed risk aversion surfaced on Wednesday with stocks pressured and gold rising as investors fret the global economy will not escape a recession even after bank bailouts, which have taken the edge off money market stress. Oil prices held near a one-year trough below $80 set on Friday, while the yen and government bonds climbed as fears about an imminent financial meltdown gave way to economic worries after trillions of dollars were pledged to boost the banking system.

By Kevin Plumberg 7 minutes ago HONG KONG (Reuters) - Most Asian stock markets fell 1-3 percent while gold rose on Wednesday on investor worries of lower corporate earnings in a weakening global economy, even as money markets continued to heal gradually. Major European share markets were expected to open as much as 2 percent down , according to financial bookmakers, after the FTSEurofirst 300 index rose nearly 14 percent in the last two days.

By Mike Peacock and Tomasz Janowski 3 minutes ago LONDON/SINGAPORE (Reuters) - European leaders will press on Wednesday for an overhaul of the world's financial structures after Asia joined western bastions of capitalism in bailing out banks to avert a financial meltdown. EU leaders meet in Brussels just days after stumping up 2.

Reuters - Canadian Prime Minister Stephen Harper, whose Conservatives were likely to retain power in Tuesday's election, has portrayed himself as best suited to lead the country as stock markets melted down.

AP - In the midst of historic volatility on Wall Street there is a continuing trend of blacks saving and investing less than whites, according to a survey released Wednesday. The difference is attributed to various social and cultural reasons such as getting less exposure to personal finance concepts and advice.

By Braden Reddall and Alister Bull 1 hour, 45 minutes ago PALO ALTO, California/MEMPHIS, Tennessee (Reuters) - A pair of top Federal Reserve officials on Tuesday highlighted risks to the U. S. economy from the global credit crisis and liquidity squeeze, but did not hint at more interest rate cuts as a solution.

By Braden Reddall 40 minutes ago PALO ALTO, California (Reuters) - The U. S. economy "appears to be in a recession" as the financial market crisis bites deeply, San Francisco Federal Reserve Bank President Janet Yellen said on Tuesday. "The outlook for the U. S. economy has weakened noticeably, and inflationary pressures have substantially abated," Yellen said in a speech to the Financial Executives International's Silicon Valley chapter in Palo Alto, California.

By Tomasz Janowski and Tetsushi Kajimoto 6 minutes ago SINGAPORE/TOKYO (Reuters) - Global recession fears returned to center stage on Wednesday after trillions of dollars pledged by governments around the world for bank bailouts eased the threat of imminent financial meltdown. In a reminder of the dire state of the world economy, a senior U.

By Eric Auchard and David Lawsky 24 minutes ago SAN FRANCISCO (Reuters) - Technology bellwether Intel Corp (INTC. O) posted a 12-percent rise in quarterly profit as the world's biggest computer chipmaker said demand, while uncertain, was holding up despite the global economic crisis. Intel said on Tuesday it expects revenue in the fourth quarter of $10.

By Nick Carey 18 minutes ago DETROIT (Reuters) - Labor unions in the United States and Canada on Tuesday expressed concern about the prospect of job losses from any merger between General Motors Corp (GM. N) and Chrysler LLC, adding that union leaders had not been consulted by the automakers. The Canadian Auto Workers union has asked both GM and Chrysler, which is controlled by private equity group Cerberus Capital Management LP (CBS.

Reuters - The U.S. budget deficit hit a record $455 billion in fiscal 2008 as a slowing economy sapped revenues while spending on wars, bank failures and unemployment-related benefits soared, the Treasury Department said on Tuesday.

41 minutes ago SAN FRANCISCO (Reuters) - Technology bellwether Intel Corp (INTC. O) posted a 12 percent rise in third-quarter profit and said current quarter revenue could come in lighter than expected amid uncertain demand, but the outlook was better than feared, sending its shares higher. The world's biggest computer chipmaker said on Tuesday it expects revenue in the fourth quarter of $10.

By Daniel Trotta 5 minutes ago NEW YORK (Reuters) - The United States ushered in a new era in banking on Tuesday with plans to take equity stakes worth up to $250 billion in financial institutions, an incursion into the private sector that U. S. officials called a regrettable last resort. The U.

By Kristina Cooke 7 minutes ago NEW YORK (Reuters) - Stocks slid on Tuesday as fears the global economy may not avert recession slammed shares of technology and consumer companies, eclipsing a government rescue plan for banks. Shares of Intel were among the top drags on Nasdaq as investors worried about the chipmaker's quarterly results, which are due after the closing bell.

By Jonathan Stempel 30 minutes ago NEW YORK (Reuters) - Wells Fargo & Co (WFC. N), which has agreed to buy Wachovia Corp (WB. N), asked a federal court to void Citigroup Inc's (C. N) earlier agreement to buy parts of the big North Carolina lender. In a complaint filed Tuesday with the U. S. district court in Manhattan, Wells Fargo said the earlier agreement is unenforceable under the government's $700 billion banking industry bailout because it is "contrary to public policy.

43 minutes ago (Reuters) Apple CEO Steve Jobs on Tuesday unveiled the latest line of MacBook notebook computers, offering an all-metal design, 3D graphics and LED backlit displays at prices up to $700 less than before. (Bangalore Equities Newsroom).

By Gabriel Madway and David Lawsky 28 minutes ago CUPERTINO, California (Reuters) - Apple Inc on Tuesday cut the price on its entry-level notebook computer to $999 and introduced a line of aluminum-clad machines starting at $1,299 in moves catering to budget-minded buyers at a time when recession fears loom over the global economy.

By Leah Schnurr 4 minutes ago NEW YORK (Reuters) - The Dow and S&P 500 edged higher on Tuesday, buoyed by the U. S. government's plan to pump money into banks, but worries over the credit crunch's impact on corporate results kept the Nasdaq lower. Financial shares climbed on the Treasury Department's plan to inject $250 billion in major banks to stabilize the financial system in hopes of averting further damage to the economy.

Reuters - Best Buy, the world's top consumer electricals retailer, set out bold international growth plans on Tuesday, led by its European venture with Britain's Carphone Warehouse, despite a tough consumer outlook.

By Ellis Mnyandu 13 minutes ago NEW YORK (Reuters) - The Nasdaq fell in choppy trading on Tuesday as investors sold technology shares on fears that fallout from the credit turmoil would hurt profits despite the U. S. government's plan to invest in banks to shore up the financial system. The Dow and S&P 500 were moderately higher after a sharp rise at the open.

Reuters - Procter & Gamble Co's lineup of beauty and household products can succeed -- even in these volatile economic times, the world's largest consumer product told investors on Tuesday at its annual meeting.

AP - Specialty retailer Linens 'n Things, which filed for bankruptcy protection in May, plans to begin liquidation sales at its stores as early as Thursday after failing to find a buyer that wanted to operate the company.

Reuters - U.S. bank stocks soared on Tuesday after the government set plans to inject $250 billion into the battered sector, hoping to restore confidence after exposure to toxic debt pummeled share prices.

By Ransdell Pierson 21 minutes ago NEW YORK (Reuters) - Johnson & Johnson, fueled by strong sales of consumer products and medical devices, reported third-quarter earnings that beat Wall Street expectations and lifted its shares more than 3 percent. But sales of J&J (JNJ. N) prescription drugs rose only slightly in the period, following new generic competition for its Risperdal schizophrenia drug.

by Lenaig Bredoux Tue Oct 14, 2:29 AM ET FRANKFURT (AFP) - A German car maker is ignoring the equity market exodus: Volkswagen shares have set record highs while almost all other stocks are slammed by the financial crisis. "There is no rational explanantion," said Juergen Pieper, an analyst with the Metzler Bank amid heavy trading in the auto giant's shares.

By Joe Brock 16 minutes ago LONDON (Reuters) - Oil rose more than $3 on Tuesday, extending the previous session's 4 percent gain, as investors' confidence over government moves to shore up banks offset expectations of a global recession. Global markets powered ahead, with European and Asian markets following Wall Street's lead after governments around the world bet hundreds of billions of dollars to shore up ailing banks.

By Daniel Trotta 8 minutes ago NEW YORK (Reuters) - The United States ushered in a new era in banking on Tuesday with plans to take ownership stakes in major financial institutions totaling as much as $250 billion, an incursion into the private sector that was called a regrettable last resort.

By Jeremy Pelofsky and Tabassum Zakaria 13 minutes ago WASHINGTON (Reuters) - The United States pledged on Tuesday to pump $250 billion into its banks, following similar action in Europe, but data showed the threat of recession has not been banished even if a financial sector meltdown has. In Europe, major economies showed signs of flagging output and falling business confidence, but smaller countries also suffered acutely.

20 minutes ago NEW YORK (Reuters) - Stocks gained more than 2 percent on Tuesday after the Treasury Department said it would pump $250 billion into major banks, easing fears about stability in the U. S. financial system. The Dow Jones industrial average climbed 354. 51 points, or 3. 78 percent, to 9,742.

Reuters - The remaining Linens 'n Things stores will likely start liquidation sales as early as Thursday after the home goods retailer failed to find a buyer that will operate the company as a going concern.

Reuters - PepsiCo Inc reported a quarterly profit that missed Wall Street expectations, hurt by disappointing U.S. soft drink sales.

Reuters - Johnson & Johnson, fueled by strong sales of consumer products and medical devices, on Tuesday reported third-quarter earnings that eclipsed Wall Street expectations and lifted shares almost 5 percent.

By Ellis Mnyandu 5 minutes ago NEW YORK (Reuters) - Stock index futures pointed to a sharply higher open for a second day on Tuesday as a plan by Washington to inject $250 billion of capital in major U. S. banks spurred investors to wade back into equities. More signs of a thaw in the credit markets, with the cost of lending between banks easing, added to the positive tone.

Reuters - Johnson & Johnson reported on Tuesday third-quarter results of $1.17 a share.

By TIM PARADIS, AP Business Writer Mon Oct 13, 9:48 PM ET NEW YORK - Wall Street stormed back after its worst week ever and staged the biggest single-day stock rally since the Great Depression on Monday, catapulting the Dow Jones industrials to a 936-point gain and finally offering relief from eight consecutive days of stock market carnage.

Tue Oct 14, 12:31 AM ET TOKYO (AFP) - Japan announced a package of measures Tuesday aimed at supporting the ailing stock market, including a loosening of restrictions on companies buying back their own shares. The moves helped to fuel a powerful rally on the Tokyo stock market, which soared more than 13 percent as investors cheered steps by world governments to try to ease the global financial crisis.

5 minutes ago DUBAI (Reuters) - General Motors (GM. N) said on Tuesday bankruptcy for the firm is not an option and called for coordinated federal action to assist the ailing U. S. automobile industry. "Bankruptcy is not an option that GM is considering," Maureen Kempston Darkes, Group Vice President and President, GM Motors Latin America, Africa and Middle East, said at a news conference in Dubai.

By Megan Davies 37 minutes ago DUBAI (Reuters) - Blackstone Group (BX. N) chief executive Stephen Schwarzman said on Tuesday that action by the U. S. government to inject cash into its banks, alongside other dramatic moves around the world, could break the back of the credit crisis. "We will be looking today to an absolute sea change in the global financial system in terms of liquidity," Schwarzman told a packed room at the Super Return private equity conference in Dubai.

By MADLEN READ, AP Business Writer 1 minute ago NEW YORK - Wall Street was gearing up for another surge higher Tuesday following the Dow Jones industrial average's historic 936-point jump, with investors encouraged by the U. S. government's plans to spend $250 billion on private banks' stock.

By Mike Peacock and Elaine Lies 7 minutes ago LONDON/TOKYO (Reuters) - The United States will announce plans on Tuesday to inject $250 billion into its banks and mark a turning point in the global financial crisis, following a concerted European drive to do the same The Treasury is due to unveil its plan at 8:30 a.

Mon Oct 13, 6:26 PM ET NEW YORK (AFP) - Global stock markets staged spectacular gains Monday as governments pumped hundreds of billions of dollars into banks crippled by the credit crunch, coaxing newly confident investors to buy shares. Wall Street broke out the champagne after world leaders took massive steps to unlock frozen credit markets, driving the Dow into its biggest rally in 75 years.

1 hour, 5 minutes ago SINGAPORE (Reuters) - Federal Reserve Chairman Ben Bernanke said a U. S. financial rescue plan to be fleshed out on Tuesday would restore normality to markets and lay the groundwork for economic recovery. Bernanke, writing an editorial in the Wall Street Journal, did not give details of the plan, which will be announced as part of government efforts to save the global financial system from collapse after a series of U.

5 minutes ago TOKYO (Reuters) - Japan's Nikkei stock average rose more than 14 percent on Tuesday and was set for the biggest one-day gain in its nearly 60-year history after governments around the world pledged to support struggling banks and restore confidence in the financial system. As of 1:52 a.

Reuters - Permal Investment Management, the hedge fund investment division of U.S. asset manager Legg Mason Inc , is aiming to raise up to $500 million to take advantage of a boom in distressed sales of hedge fund holdings, the Financial Times said.

11 minutes ago TOKYO (Reuters) - The Nikkei average soared more than 14 percent on Tuesday, the biggest one-day gain in its 58-year history, after governments around the world pledged to support struggling banks and restore confidence in the financial system. The benchmark Nikkei (. N225) surged 14.

17 minutes ago (Reuters) - Mid-tier retailer J. C. Penney Co Inc (JCP. N) is expected to announce a new line of moderately-priced women's apparel later on Tuesday, the Wall Street Journal said. The paper said the company hopes the line will boost sales among shoppers, especially those in their 20s and 30s, who are cutting spending in the financial crisis.

Reuters - Japan's Nikkei stock average soared 13 percent on Tuesday, taking heart from international government pledges to pour cash into struggling banks and restore confidence in the global financial system.

By Alan Raybould and Leika Kihara 17 minutes ago BANGKOK/TOKYO (Reuters) - The U. S. Treasury is ready to inject $250 billion into U. S. banks, mirroring moves by other leading countries that have boosted confidence in financial markets and sent the Nikkei soaring 13 percent on Tuesday. The U.

Reuters - Japan's Nikkei stock average soared more than 13 percent on Tuesday, with investors taking heart from pledges by authorities worldwide to pour cash into struggling banks.

Reuters - Mitsubishi UFJ Financial Group (8306.T) shares traded at their daily limit-high of 810 yen on Tuesday after Japan's top bank delivered on a planned $9 billion investment in U.S. firm Morgan Stanley .

By David Lawsky and Gabriel Madway Mon Oct 13, 5:56 PM ET SAN FRANCISCO (Reuters) - Technology investors watching as Intel Corp (INTC. O) and other semiconductor makers report earnings this week have one question: How bad can it get? "People expect the worst," said Doug Freedman of American Technology Research in San Francisco, speaking of Intel earnings, which are due on Tuesday and come against a backdrop of dismal economic news that has sent stocks down.

Reuters - The Nikkei stock average surged more than 12 percent on Tuesday, making up for its worst one-day loss since the 1987 stock market crash after international government pledges to pour cash into struggling banks and restore confidence in the global financial system.

By JOE BEL BRUNO, AP Business Writer Mon Oct 13, 5:04 PM ET NEW YORK - Amid weeks of stock market turmoil, many worried investors have been tracking the daily trajectory of the Dow Jones industrial average like never before. But few understand how the index of 30 of the biggest U. S. companies is calculated — or what the closely watched measure of stock market performance really means.

Reuters - Icelandic officials are in Moscow on Tuesday for talks on an emergency loan that could be worth billions of euros, the country's latest attempt to raise cash to help save its economy from collapse.

By MARTIN CRUTSINGER, AP Economics Writer 11 minutes ago WASHINGTON - A financial industry official says the Bush administration has decided to greatly expand protections for the U. S. banking system out of concern for the faltering economy. The official said the administration will use perhaps as much as $250 billion of the $700 billion rescue program recently passed by Congress to purchase stock in U.

By Soyoung Kim and Poornima Gupta 4 minutes ago DETROIT (Reuters) - General Motors Corp shares closed up 33 percent on Monday on signs that the No. 1 U. S. automaker had explored options ranging from a merger with Ford Motor Co or Chrysler to federal funding in order to ride out a brutal downturn in sales.

By John Crawley 5 minutes ago WASHINGTON (Reuters) - U. S. automakers could turn to Congress after the November election to try to expedite $25 billion in government-backed loans, which Detroit manufacturers consider crucial to reversing their steep downward spiral. The prospect of an economic stimulus bill moving before year's end or in early January could provide an opening for General Motors Corp, Ford Motor Co and Chrysler LLC and their allies on Capitol Hill to get the money moving faster than is now expected as financial pressures grow more acute, especially at GM.

By MARTIN CRUTSINGER, AP Economics Writer 1 minute ago WASHINGTON - The Bush administration plans to greatly expand protections for the U. S. banking system out of deep concern for the faltering economy, an industry official said Monday night after banking executives and top federal officials met to revamp the largest bailout plan in the nation's history.

by Omar Hasan Mon Oct 13, 10:06 AM ET KUWAIT CITY (AFP) - Stock markets in the Middle East made a strong comeback on Monday led by bourses in the oil-rich Gulf following a series of local and international measures to try to ease the global financial crisis. The Saudi market, the largest in the Arab world, closed up 9.

By David Lawder and Karey Wutkowski 22 minutes ago WASHINGTON (Reuters) - U. S. Treasury Secretary Henry Paulson met with top Wall Street bankers on Monday to nail down a plan for the government to buy shares in financial firms to restore confidence in rattled markets. The evolving plan marks a quick about-face for Washington policy-makers, who until recent days had been focusing on building an apparatus to soak up bad assets from banks.

By Matthew Robinson 2 hours, 6 minutes ago NEW YORK (Reuters) - Oil prices rose more than 4 percent on Monday as global markets rallied after governments launched bailout schemes to shore up banks. Britain, Germany, France, Italy and other European governments all announced rescue packages to stave off the global financial crisis, while U.

By Kristina Cooke 18 minutes ago NEW YORK (Reuters) - Wall Street roared back from its worst week ever with one of its best single days ever on Monday, as governments pledged to pour cash into struggling banks to restore confidence in a rocky global financial system. Bargain-hunting investors scoured the wreckage from eight days of losses that had whacked more than 20 percent off the value of the benchmark S&P 500.

23 minutes ago NEW YORK (Reuters) - Wall Street rebounded from its worst week on record with its best single day ever on Monday, as countries around the world pledged to pour cash into their struggling banks to prop up the global financial system. The Dow Jones industrial average soared 936. 42 points, or 11.

By Joseph A. Giannone 6 minutes ago NEW YORK (Reuters) - Mitsubishi UFJ Financial Group Inc (MUFG) completed its $9 billion investment in Morgan Stanley on Monday as U. S. government support helped nail down a critical deal many investors had feared could fall apart. Morgan Stanley shares soared more than 75 percent after Japan's largest bank bought a 21 percent stake one day earlier than expected.

Reuters - Iceland has officially requested financing from the International Monetary Fund, an IMF official said on Monday, part of efforts to combat a crisis that has overwhelmed its once-flourishing financial sector.

By Daniel Trotta 17 minutes ago NEW YORK (Reuters) - The world bet solidly on recapitalizing ailing banks as the fastest way out of the financial crisis in a clear new direction on Monday that reinvigorated stock markets after their worst week in history. Led by the Britain, European governments agreed to multibillion-dollar guarantees for the banking system in moves that may become a crucial test of investor faith in government's ability to reverse the downward spiral.

By David Lawder 13 minutes ago WASHINGTON (Reuters) - The U. S. Treasury and Federal Reserve were working on Monday to finalize details on a plan to recapitalize banks and stabilize financial markets in the wake of new measures announced in Europe. The plan, which is expected to provide more clarity on how the Treasury will acquire equity stakes in U.

By Leah Schnurr 15 minutes ago NEW YORK (Reuters) - Stocks surged on Monday, following the worst week ever, as global efforts by governments to pump cash into banks sparked a rally in financial shares, while credit markets showed some signs of loosening up. Governments, including those of Germany and France, stepped up efforts to restore confidence in the shaky banking system by offering multibillion-dollar bank rescues after weekend talks in Washington.

5 minutes ago NEW YORK (Reuters) - The Nasdaq jumped more than 7 percent on Monday, as stocks rallied on a global push by governments to pump money into cash-strapped banks and paralyzed credit markets showed some signs of loosening up. The Dow Jones industrial average climbed 549. 25 points, or 6.

9 minutes ago NEW YORK (Reuters) - Stocks extended gains on Monday, with benchmark indexes up more than 6 percent, as signs that Washington is working to pump cash into banks stemmed a slide in financial shares and investors snapped up beaten-down stocks across sectors, including healthcare and technology.

Reuters - The U.S. Treasury and Federal Reserve are meeting on Monday with "leading financial market participants" to finalize details on a market stabilization initiative, a Treasury spokeswoman said.

By Ellis Mnyandu 6 minutes ago NEW YORK (Reuters) - Stocks soared on Monday as a global push by governments to pump cash into banks fueled a rebound in financial shares and credit markets showed some signs of loosening up. Governments, including those of Germany and France, stepped up efforts to restore confidence in the tottering banking system by offering multibillion-dollar bank rescues after weekend talks in Washington.

By Herbert Lash 12 minutes ago NEW YORK (Reuters) - Stocks soared globally and crude oil prices jumped on Monday after governments around the world ordered dramatic bank rescue packages to restore market confidence and stop economies from sliding into a slump. U. S. stocks shot more than 5 percent higher after Wall Street opened, and European shares extended gains to rise more than 7 percent at one point.

By Joseph A. Giannone 5 minutes ago NEW YORK (Reuters) - Mitsubishi UFJ Financial Group Inc (MUFG) completed its purchase of a stake in Morgan Stanley on Monday with U. S. government support, helping close a deal that investors had feared would fall apart. Morgan Stanley shares soared as much as 65 percent after Japan's largest bank bought the stake -- a day earlier than expected -- after a week in which the New York bank's stock plunging by more than half on fears Morgan Stanley might not survive.

By Jeremy Gaunt and Daniel Trotta 16 minutes ago LONDON/NEW YORK (Reuters) - Stock markets rejoiced after governments worldwide launched multibillion-dollar bailouts on Monday to shore up banks, and Britain called for a new Bretton Woods agreement to reshape the world financial system. Major Wall Street stock indexes were up more than 5 percent in early trade, clawing back some of the major losses last week, when the Dow fell 18 percent.

3 minutes ago DETROIT (Reuters) - Shares of General Motors Corp jumped almost 18 percent on Monday after reports the No. 1 U. S. automaker had been in merger talks in recent weeks with smaller rivals Ford Motor Co and Chrysler LLC. Analysts were skeptical that GM could achieve substantial savings from a merger.

Investor's Business Daily - When autos go on sale, more people tend to want to buy. The same with clothing and TV sets and soft drinks.

By Joseph A. Giannone 11 minutes ago NEW YORK (Reuters) - Mitsubishi UFJ Financial Group Inc (MUFG) said on Monday it bought a stake in beaten-down Morgan Stanley, though at more favorable terms, as the U. S. government reportedly offered to support the Japanese bank's investment. Mitsubishi UFJ, Japan's largest bank, purchased a 21 percent stake in Morgan Stanley for $9 billion in cash, but amended the terms of a September 29 agreement so that the entire stake is in preferred stock.

13 minutes ago WASHINGTON (Reuters) - The U. S. Treasury Department expects to name asset managers for its $700 billion financial rescue plan within days and is working "around the clock" to thaw credit markets, the program's new chief said on Monday, The Treasury has sought proposals from firms that have at least $100 billion of fixed-income assets under management, said Neel Kashkari, the Treasury's interim assistant secretary for financial stability.

24 minutes ago TOKYO (Reuters) - Mitsubishi UFJ Financial Group plans to announce revised terms for its $9 billion investment in Morgan Stanley later on Monday, a source familiar with the matter said. The source, who spoke on condition of anonymity, said Japan's top bank planned to make the announcement soon but that it was unclear if it would be able to do so by 12 p.

by Martin Abbugao Sun Oct 12, 6:25 PM ET SINGAPORE (AFP) - As the global financial storm blows fear through Asia's stock markets, Filipino maid Christy Arciaga is jittery -- even though she does not own any shares. Her businessman employer has lately become more irritable as he has watched his investments being swallowed in a sea of red ink, and the 46-year-old domestic helper is often on the receiving end of his bad moods.

By Ellis Mnyandu 4 minutes ago NEW YORK (Reuters) - Stock index futures soared on Monday as a push by governments around the world to pump money into the clogged banking system sparked relief among investors and credit markets showed signs of loosening up. Stock markets leaped in Asia overnight, and in Europe, where the FTSEurofirst 300 (.

By Paul Day 5 minutes ago MADRID (Reuters) - Spain's Santander said it was in talks to acquire Sovereign Bancorp Inc on Monday, as the euro zone's largest bank hunted for bargains in a sector that has been hit by the global financial crisis. On Monday, a source familiar with the matter said Santander was expected to pay $3.

By Jeremy Gaunt and Sumeet Desai 4 minutes ago LONDON (Reuters) - Governments across the world moved on Monday to shore up tottering global banks with multi-billion dollar bailouts and Britain called for a new Bretton Woods agreement to reshape the world financial system. The slew of bank bailouts worth hundreds of billions of dollars were designed to stave off the world's worst financial crisis in nearly 80 years, accompanied by declining global economic growth and the threat of widespread recession.

By Blaise Robinson 32 minutes ago PARIS (Reuters) - Stock index futures were sharply higher on Monday, pointing to a rally on Wall Street as a flurry of moves by governments to restore confidence in the global financial system spurred a rebound in stocks worldwide. By 4:55 a. m. EDT, S&P 500 futures were up 6 percent, Dow Jones futures up 4.

By Natsuko Waki 1 hour, 54 minutes ago LONDON (Reuters) - World stocks jumped on Monday from last week's four-year low after policymakers around the world took new and drastic steps to rescue banks and prevent the global economy from sinking into recession. Oil jumped nearly 5 percent from its 13-month low while government bonds tumbled after Britain injected 37 billion pounds ($63.

By Jodie Ginsberg and Steve Slater 15 minutes ago LONDON (Reuters) - Britain bailed out three major banks with 37 billion pounds ($64 billion) on Monday, as European governments used taxpayers' cash to take control and boost confidence in the battered industry. In return for the British government's cash, which could make it the main shareholder in at least two of the banks, they will be forced to curtail the bonuses that many believe encouraged a risk-taking culture that precipitated the global financial crisis.

34 minutes ago MADRID (Reuters) - Spain's largest bank Santander is in talks to buy U. S. bank Sovereign Bancorp Inc, but that no deal has yet been reached, Santander said in a statement on Monday. A source familiar with the matter said late on Sunday the Spanish bank was in advanced talks to acquire full control of Sovereign, in which it already holds a 24.

by Veronica Smith Sun Oct 12, 5:30 PM ET WASHINGTON (AFP) - An unprecedented worldwide effort costing trillions of dollars to tame the financial crisis faces an acid test Monday when battered Asian stock markets pass a critical judgment on the measures. World finance leaders have mounted an extraordinary unified front in recent days in a bid to calm investors' nerves and draw a line under the worst financial turmoil since the 1929 market crash.

By Jeremy Gaunt and David Chance 19 minutes ago LONDON/KUALA LUMPUR (Reuters) - Governments across the world moved on Monday to shore up confidence in the global banking system with a slew of bank bailouts worth hundreds of billions of dollars. Stocks markets reacted positively, with European shares opening up more than 4.

By Kevin Plumberg 12 minutes ago HONG KONG (Reuters) - Asian stocks bounced 5 percent from a four-year low on Monday after policymakers around the world took increasingly bold steps to rescue the financial system, including guaranteeing bank deposits and taking stakes in banks. if(window. yzq_d==null)window.

11 minutes ago LONDON (Reuters) - Three major British banks could take 37 billion pounds ($64 billion) in government money to boost their capital, the UK Treasury said. Royal Bank of Scotland (RBS. L) said in a statement it will boost its capital by 20 billion pounds, including the UK government taking 5 billion pounds in preference shares and 15 billion pounds underwritten by the government.

By Paritosh Bansal 17 minutes ago NEW YORK (Reuters) - Spain's Banco Santander SA was in advanced talks late Sunday to acquire full control of Sovereign Bancorp Inc, the largest remaining U. S. savings and loan, a source familiar with the matter said. A deal could be announced as soon as Monday, the source said.

Sun Oct 12, 2:55 PM ET JERUSALEM (AFP) - Israel's main stock index ended the day Sunday with a 3. 80 percent loss after initially taking a sharp plunge when the Tel Aviv Stock Exchange opened after a four-day holiday weekend. The TA-25 index, which includes the 25 largest Israeli companies by market capitalisation, dropped to finish at 767.

By Kevin Plumberg 20 minutes ago HONG KONG (Reuters) - Most Asian stock markets rose on Monday after policymakers around the world took increasingly bold steps to rescue the financial system, including guaranteeing bank deposits and taking stakes in banks. However, the yen rose against the euro and U.

By David Chance 1 hour, 10 minutes ago KUALA LUMPUR (Reuters) - The world readied on Monday for a slew of bank bailouts worth hundreds of billions of dollars in an effort to staunch the credit rout that threatens to tip the global economy into recession. Britain is expected later on Monday to detail plans to inject about 45 billion pounds ($68.

Reuters - The retirement of Ford Motor Co's chief financial officer last week came after increasing friction between him and other senior executives, The Wall Street Journal said citing people familiar with the matter.

By Joseph A. Giannone 32 minutes ago NEW YORK (Reuters) - Japan's Mitsubishi UFJ Financial Group, which has watched Morgan Stanley's share price plunge 58 percent last week, is seeking more favorable terms to its $9 billion deal, a person briefed on the matter said. The Japanese lender will still buy a 21 percent stake from Morgan Stanley for $9 billion, but will amend the terms to include only convertible preferred shares and no common stock, the source said.

by Dave Clark Sun Oct 12, 8:17 AM ET PARIS (AFP) - European leaders were due in Paris on Sunday for a summit that would mark their last chance to hammer out a coordinated financial rescue package before their panic-stricken stock markets reopen. French President Nicolas Sarkozy, the current head of the European Union, was to host first Britain's Prime Minister Gordon Brown and then his 14 colleagues from the single-currency euro bloc in the Elysee Palace.

By Kevin Krolicki and John Crawley 11 minutes ago DETROIT/WASHINGTON (Reuters) - What's good for General Motors Corp (GM. N) is good for the country. When former GM chief executive Charles Wilson told the U. S. Senate that GM "goes with the welfare of the country" in 1953, the automaker had more employees than the populations of Delaware and Nevada combined.

by Omar Hasan Sun Oct 12, 6:06 AM ET KUWAIT CITY (AFP) - Stock markets in the energy-rich Gulf states opened the week's trading Sunday sharply down with the Dubai Financial Market shedding six percent. The Saudi bourse, the largest in the Arab world, also continued its slump, shedding about half a percentage point after dropping almost six percent on Saturday, the week's opening day in oil powerhouse Saudi Arabia.

Sun Oct 12, 5:55 AM ET CAIRO (AFP) - Egypt's key CASE-30 stock index fell over nine percent before recouping some losses to settle 7. 38 percent down in early trade on Sunday amid fresh concerns about the global financial crisis. The CASE-30, which lost more than 20 percent of its value amid widespread selling on global stock exchanges last week, had closed at 5,667 points on Thursday, the last day of trading before the weekend in Egypt.

By Joseph A. Giannone 25 minutes ago NEW YORK (Reuters) - Despite its best efforts to fortify its defenses, Morgan Stanley's fate hangs in the balance after the market's relentless assault last week. Come this Tuesday, Morgan Stanley's agreement to sell a 21 percent stake to Japan's Mitsubishi UFJ Financial Group Inc for $9 billion could be completed.