News For Monday Oct 6, 2008 News For Monday Oct 6, 2008

Business Business

Dow finishes below 10,000 for first time since '04 - Added 7 minutes ago

Wall Street joined in a worldwide cascade of despair Monday over the financial crisis, driving the Dow Jones industrials to their biggest loss ever during a trading day. Even a big afternoon rally failed to keep the Dow...

Europe governments go their own way on crisis - Added 28 minutes ago

Individual European governments issued a cascade of deposit guarantees to shore up their banks but fell short of any coordinated action Monday to deal with the crisis sweeping financial markets, even as stock markets...

Oil prices fall as financial turmoil goes global - Added 45 minutes ago

Oil prices plunged below $90 a barrel Monday, coming within reach of year-ago levels as a widening financial maelstrom spreads overseas and crimps global demand for energy. A barrel of oil has not been this cheap in...

ECB, euro nations try to soothe volatile markets - Added 47 minutes ago

European Central Bank President Jean-Claude Trichet called Monday for calm in the continent's jittery markets, saying they are overestimating risks and the euro-zone central bank stood ready to provide all the liquidity...

Bank of America reports profit drop, capital raise - Added 52 minutes ago

Bank of America Corp. on Monday reported third-quarter results earlier than planned, revealing a wider-than-expected profit drop and plans to boost capital by selling $10 billion stock and halving its dividend. Like...

Credit markets still tight as stocks plunge - Added 2 hours ago

The jammed credit markets barely budged Monday as governments around the world scrambled to prop up their failing banks and investors waited for details on how, exactly, the Treasury will go about buying $700 billion of...

Commodities prices drop as credit crisis spreads - Added 2 hours ago

Commodities prices tumbled broadly Monday on growing expectations that the financial crisis pummeling world markets will dramatically reduce global demand for energy and raw materials. Gold prices shot up as investors'...

World stock markets plunge on crisis fears - Added 2 hours ago

Stock markets slumped worldwide Monday, some marking record one-day drops, on fears the global financial crisis will worsen and hit the wider economy despite bank bailouts in the U.S. and Europe. Stocks began their...

Wachovia, Citigroup, Wells agree to standstill - Added 2 hours ago

Wachovia, Citigroup and Wells Fargo on Monday agreed to a standstill of all formal litigation activity _ a sign that the banks and the Federal Reserve are working feverishly to reach an agreement over the fate of...

Rescue plan disappointment contributes to sell-off - Added 2 hours ago

The government's $700 billion rescue, aimed at rebuilding economic confidence, appeared to sound a global alarm instead on Monday, triggering a fearful international sell-off as the U.S. began work on a plan that...

Fed OKs request for Japan stake in Morgan Stanley - Added 3 hours ago

The Federal Reserve has granted approval for Japan's largest bank to purchase a stake in U.S. investment giant Morgan Stanley. The Fed issued an order Monday saying that it had approved the request of Mitsubishi UFJ...

MISSING TITLE - Added 3 hours ago

Federal Reserve authorizes Japanese bank Mitsubishi to acquire stake in Morgan Stanley. ...

Starbucks faces another NLRB complaint - Added 3 hours ago

Starbucks Corp. is facing another complaint from the National Labor Relations Board alleging that the gourmet coffee chain engaged in unfair labor practices by firing a barista in Michigan. The complaint, filed last...

Eli Lilly to buy ImClone for more than $6B - Added 3 hours ago

Eli Lilly & Co.'s winning bid of more than $6 billion for cancer drugmaker ImClone Systems means a billion-dollar payday for former rival bidder Bristol-Myers and vindication for corporate raider and ImClone...

EBay cutting 1,600 jobs, 10 percent of work force - Added 3 hours ago

After a series of changes designed to draw more people to its online marketplace, eBay Inc.'s latest alteration is aimed at its own employees. The auction site operator said Monday it will cut about 1,600 jobs, 10...

Mars, Wrigley close $23 billion deal, create giant - Added 3 hours ago

Mars Inc. has closed a $23 billion deal to purchase chewing-gum giant Wm. Wrigley Jr. Co., the companies said Monday, making the combined business the world's largest candy maker. The deal brings together household...

Honeywell, EBay, ImClone among big movers - Added 3 hours ago

Stocks that moved substantially or traded heavily Monday on the New York Stock Exchange and Nasdaq Stock Market: NYSE Honeywell International Inc., down $1.92 at $35.92 The conglomerate in a business update said it...

Agriculture futures decline sharply on CBOT - Added 3 hours ago

Agriculture futures traded lower Monday on the Chicago Board of Trade. Wheat for December delivery fell 45 cents to $5.9525 a bushel; December corn lost 30 cents to $4.24 a bushel; December oats dropped 20 cents to...

Paid plaintiff gets 3 months for kickback scheme - Added 3 hours ago

A man who was paid $2.5 million to be a plaintiff in a major lawsuit kickback scheme was sentenced Monday to three months in prison. Retired real estate mortgage broker Harold J. Vogel was sentenced by U.S. District...

Kraft to cut 400 jobs in North America - Added 3 hours ago

Foodmaker Kraft Foods Inc. said Monday it is cutting 400 jobs in North America to reduce costs. Kraft spokeswoman Renee Zahery said the layoffs will represent a cut of about 1 percent in the company's North American...

The deal: Lilly buys ImClone - Added 4 hours ago

WHAT HAPPENED: Indianapolis-based drug maker Eli Lilly & Co. is buying the biotech firm ImClone Systems Inc. for more than $6 billion. DEAL SPECIFICS: Lilly agreed to pay $70 per share in an all-cash offer it will...

Financial turmoil takes toll on September sales - Added 4 hours ago

WHAT'S UP: Retailers are expected to report dismal same-store sales figures on Wednesday, providing the first full gauge of consumer behavior since the financial meltdown began. The only bright spots will be discounters...

Stores expected to report dismal September sales - Added 5 hours ago

The weak retail sales merchants had been expected to post for September will likely prove to have been a disaster as the financial meltdown that began halfway through the month sent shoppers into hiding. The expected...

Fed to provide as much as $900B in loans to banks - Added 5 hours ago

The Federal Reserve will provide as much as $900 billion in cash loans to squeezed banks in an urgent effort Monday to break through a dangerous credit clog that threatens the economy and has unhinged financial markets...

Officials pledge to move quickly on rescue - Added 6 hours ago

The Treasury Department moved swiftly Monday to implement the financial rescue package, naming a former Goldman Sachs executive to oversee spending the $700 billion earmarked for the plan and pledging to work with other...

Paulson picks interim head for rescue effort - Added 6 hours ago

The administration has selected a former Goldman Sachs executive to be the interim head of its $700 billion rescue effort for financial institutions. Neel Kashkari, the Treasury's assistant secretary for international...

Ford feature will let parents set limits for teens - Added 6 hours ago

So you think junior is a little too lead-footed when he drives the family car? Starting next year, Ford Motor Co. will give you the power to do something about it. The company will roll out a new feature on many 2010...

Germany considers national financial "shield" - Added 8 hours ago

Germany's finance minister said Monday he is considering creating a "shield" that would protect the country's entire financial sector, arguing it would not be possible to continue to address troubled financial...

A look at toys making this season's hot lists - Added 9 hours ago

Industry experts are beginning to unveil the list of what they believe will be hot toys for the holiday season. Here are a few that made both Timetoplaymag.com's "Most Wanted" list and Toy Insider's "Hot 20." _ELMO...

Consumers likely to shop cautiously for toys - Added 9 hours ago

Will financial-market turmoil be the Grinch this Christmas? With parents already facing high food and gas costs and slumps in the job and housing markets, the turmoil in the financial sector could further spur them to...

Allianz investing $2.5B in Hartford Financial - Added 10 hours ago

Hartford Financial Services Group Inc. said Monday it will receive a $2.5 billion investment from Allianz SE. The Hartford, Conn.-based insurer also predicted a steep third-quarter loss, and said it is cutting its...

European, Asian markets plunge on crisis fears - Added 10 hours ago

Asian and European stock markets plunged Monday as government bank bailouts in the U.S. and Europe failed to alleviate fears that the global financial crisis would depress world economic growth. Investors took scant...

Economists say shaky economy may last for a while - Added 11 hours ago

A growing number of economists believe the country is on the brink of _ or already in _ its first recession since 2001 and that it will be longer lasting. That's part of the latest outlook from forecasters in a survey...

J&J Crohn's disease drug is superior in its study - Added 11 hours ago

An injected Johnson & Johnson biologic drug used to treat several immune diseases controlled Crohn's disease, a difficult-to-treat bowel disorder, better than a widely used pill, a study found. Run by J&J's...

Treasury announces plan to boost debt auctions - Added 11 hours ago

The Treasury Department said Monday it will increase its debt auctions to handle the $700 billion rescue program for the country's financial system. The Treasury said it would increase the size of its auctions in...

BNP Paribas to take majority stake in Fortis - Added 12 hours ago

Officials of troubled Belgian bank Fortis NV acknowledged Monday they had no choice but to seek a buyout by another bank because of the increasing problems the company suffered due to the global financial credit crisis....

Unicredit's Profumo acknowledges errors - Added 12 hours ago

Unicredit Chief Executive Alessandro Profumo acknowledged Monday that Italy's largest bank had underestimated the significant market changes since the collapse of the U.S. investment bank Lehman Brothers, forcing the...

Court tilts Wachovia fight toward Wells Fargo - Added 12 hours ago

The battle for control of troubled bank Wachovia tilted toward Wells Fargo Sunday as a state appeals court blocked a lower court ruling that had favored rival bidder Citigroup. At stake is the $339 billion in Wachovia...

Verizon says $28.1B buyout of Alltel on track - Added 13 hours ago

Verizon Wireless says it is moving forward with plans to acquire Alltel Corp. for $28.1 billion, although the country's financial climate has worsened since the companies reached an agreement four months ago. Verizon...

American Airlines considers a la carte pricing - Added 13 hours ago

The idea of paying a single, simple fare to fly on an airliner is becoming as quaint as stewardesses in short skirts. American Airlines is about to accelerate the trend of breaking the cost of a trip into an airfare...

Credit crisis adds to pressures on auto dealers - Added 13 hours ago

Hundreds of thousands of new cars and trucks that would have quickly made their way to people's driveways a year ago are now stacking up on dealer lots across the country, with potential buyers worried about whether...

European, Asian markets plunge on crisis fears - Added 13 hours ago

Asian and European stock markets plunged Monday as government bank bailouts in the U.S. and Europe failed to alleviate fears that the global financial crisis would depress world economic growth. Investors took scant...

SKorea wants financial summit with China, Japan - Added 13 hours ago

South Korea's ruling party says President Lee Myung-bak will propose a summit with China and Japan to discuss how to cope with the current global economic crises. The Grand National Party says Lee told party leader...

Chinese insurer to record $2.3B loss on Fortis - Added 13 hours ago

China's Ping An Insurance Co. said Monday it will record a $2.3 billion loss on its stake in troubled European bank Fortis NV, in the biggest blow yet to a Chinese institution from the global credit crisis. Ping An,...

AP Executive Morning Briefing - Added 14 hours ago

The top business news from The Associated Press for the morning of Monday, October 6, 2008: Asian markets plunge on fears crisis is spreading SINGAPORE (AP) _ Asian stock markets plunged Monday as government bank...

European central banks offer more cash to markets - Added 16 hours ago

The European Central Bank, the Bank of England and the Swiss National Bank offered more than $60 billion to markets Monday to try to keep the financial sector flush with cash. The European Central bank offered $50...

German gov't, banks agree to $69B bailout for Hypo - Added 16 hours ago

Germany on Sunday guaranteed all private bank accounts and negotiated a 50 billion euro ($69 billion) bailout deal for Hypo Real Estate AG as Europe's second largest economy sought to ward off financial crisis. The...

Despite costs, healthy school lunches on the menu - Added 17 hours ago

The buffet offers a variety of pizzas, with whole wheat crust, organic toppings and hormone-free cheese. The salad bar includes some greens and vegetables grown without pesticides in a nearby garden. And the chef even...

Battered financial industry faces more oversight - Added 19 hours ago

With the passage of the $700 billion rescue package, the financial industry will face greater congressional scrutiny in coming weeks and months. Further-reaching regulation is almost certain. Previously obscure corners...

Bank on this: Bank failures will rise in next year - Added 21 hours ago

Here's a safe bet for uncertain times: A lot of banks won't survive the next year of upheaval despite the U.S. government's $700 billion plan to restore order to the financial industry. The biggest question is how many...