World Business News Headlines for October 26, 2008

OPEC may decrease production further

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 26 Oct 2008 | 5:24 pm

Central banks poised to act

SINGAPORE/LONDON (Reuters) - Central banks are likely to launch new coordinated emergency action this week to calm panic in financial markets, which could be rocked further by data pointing to global recession.

Source: Reuters: Business News | 26 Oct 2008 | 5:21 pm

Crisis moves to Gulf Arab nations

Read full story for latest details.

Source: Business and financial news - CNNMoney.com | 26 Oct 2008 | 5:15 pm

Citigroup and Vancouver Airports eye Gatwick: paper

LONDON (Reuters) - The infrastructure fund of Citigroup and the Vancouver Airports Authority are planning a joint 2 billion pounds bid for Gatwick Airport, The Sunday Times reported without citing sources.

Source: Reuters: Business News | 26 Oct 2008 | 5:12 pm

Fed to slash rates as recession looms

CHICAGO (Reuters) - The U.S. Federal Reserve is expected to cut lending rates at a two-day policy meeting this week in response to unprecedented turmoil in financial markets and the threat of a global recession.

Source: Reuters: Business News | 26 Oct 2008 | 5:10 pm

Ukraine set for $16.5bn IMF loan

The International Monetary Fund agrees to offer a $16.5bn loan to Ukraine, hard-hit by fears over the global credit crisis.
Source: BBC News | Business | World Edition | 26 Oct 2008 | 5:10 pm

Radical fixes for the economy

Governments and central banks of the world's leading nations have taken unprecedented coordinated actions in the past month to help out battered financial markets and economies around the globe.

Source: Business and financial news - CNNMoney.com | 26 Oct 2008 | 5:07 pm

Economy worries hit Gulf shares

Shares in the Gulf region fall sharply as investors worry about the impact of the global economic downturn on the region.
Source: BBC News | Business | World Edition | 26 Oct 2008 | 5:05 pm

McCain cautious on auto industry bailout

WASHINGTON (Reuters) - Republican presidential candidate John McCain on Sunday declined to embrace the idea of $15 billion more in government aid for the struggling U.S. automobile industry but did not rule it out.

Source: Reuters: Business News | 26 Oct 2008 | 4:29 pm

U.K.'s Darling reportedly to say recession worse than expected

U.K. Chancellor of the Exchequer Alistair Darling is expected to say next week that the government will stay within its budget, even as it enters a worse-than-expected recession, according to a British news report.

Source: MarketWatch.com - Top Stories | 26 Oct 2008 | 4:27 pm

Fed questions counterparties about Citadel: report

CHICAGO (Reuters) - Examiners with the Federal Reserve have questioned Wall Street counterparties about their exposure to debt and other holdings of Citadel Investment Group, The Wall Street Journal said on Saturday.

Source: Reuters: Business News | 26 Oct 2008 | 4:18 pm

Fed questions counterparties about Citadel: report (Reuters)

Reuters - Examiners with the Federal Reserve have questioned Wall Street counterparties about their exposure to debt and other holdings of Citadel Investment Group, The Wall Street Journal said on Saturday.

Source: Yahoo! News: Business | 26 Oct 2008 | 4:18 pm

How Apple is gaining on Microsoft

Source: Business and financial news - CNNMoney.com | 26 Oct 2008 | 4:18 pm

Tough transition for new president

The next United States president won't have long to savor victory after Election Day.

Source: Business and financial news - CNNMoney.com | 26 Oct 2008 | 4:17 pm

Building a future

China feels the effect of the global slowdown
Source: BBC News | Business | World Edition | 26 Oct 2008 | 4:08 pm

Horror tales from Chinese tourists

Tourists taken to souvenir shops in backstreet industrial areas and told the prices are in US dollars. Guides charging tourists hundreds of dollars to leave their tour to visit a relative or friend for a couple of hours. Tour...
Source: New Zealand Herald - Business | 26 Oct 2008 | 4:00 pm

Backlash against Contact forecast

A top sharebroking firm estimates Contact Energy will lose 5 per cent of its customers by the end of next year because of a consumer backlash against its price rises and failed attempt to almost double directors' fees. Forsyth...
Source: New Zealand Herald - Business | 26 Oct 2008 | 4:00 pm

Fed picked to slash interest rates to 1%

Federal Reserve chairman Ben Bernanke is poised to slash American interest rates to just 1 per cent this week - the lowest level since the depths of the dotcom crash - as government figures reveal the US has joined Britain on the...
Source: New Zealand Herald - Business | 26 Oct 2008 | 4:00 pm

Air New Zealand seeks more cash from Pacific nations

Air New Zealand wants millions of dollars in higher subsidies from South Pacific island states to maintain services through their territories to the United States, TVNZ said last night. The subsidy requests threaten the weekly...
Source: New Zealand Herald - Business | 26 Oct 2008 | 4:00 pm

Term deposits come out on top for investors

Investors now see term deposits as providing a better return than any other investment class. The finding comes in ASB's latest quarterly Investor Confidence survey. For the first time in the survey's eight-year history term...
Source: New Zealand Herald - Business | 26 Oct 2008 | 4:00 pm

Angels more important when it's hell out there

With economics the way they are, angel investors will only be attracted to the most savvy entrepreneurial schemes, says Colin McKinnon. "There is money out there but it's harder to come by, so entrepreneurs that get the money from...
Source: New Zealand Herald - Business | 26 Oct 2008 | 4:00 pm

Australia tackles problem of billions in frozen funds

CANBERRA - Authorities were working to fix the problem of frozen investments in non-bank fund management companies, the Australian Government said yesterday. Investment management funds and mortgage funds have frozen billions of...
Source: New Zealand Herald - Business | 26 Oct 2008 | 4:00 pm

Queue of countries line up for bail-out

The International Monetary Fund is drawing up emergency plans for a new short-term loan facility for governments facing a cash squeeze as a result of the turmoil in the financial markets. Iceland is already in line for a US$2 billion...
Source: New Zealand Herald - Business | 26 Oct 2008 | 4:00 pm

Trust test for visitors

Just getting a visa to come to New Zealand can be a huge challenge for Chinese people. Visitors must apply through Chinese travel agencies which are licensed under the Approved Destination Status. There are seven of these agencies...
Source: New Zealand Herald - Business | 26 Oct 2008 | 4:00 pm

Owen Hembry: Few surprises in National's farm policy

The National Party released its agriculture policy last week, saying there is a real and growing divide between urban and rural New Zealand that needs to be urgently addressed. "National will investigate a number of steps to increase...
Source: New Zealand Herald - Business | 26 Oct 2008 | 4:00 pm

Porsche raises its stake in VW, seeks control

Auto maker Porsche increases its holdings in Volkswagon to 42.6%, coming closer to having enough rights to reach a control agreement over Europe’s largest auto maker, reports say.

Source: MarketWatch.com - Top Stories | 26 Oct 2008 | 3:31 pm

Porsche raises Volkswagen stake

Porsche says it now owns 42.6% of Volkswagen - that it hopes to get majority control by the end of 2008.
Source: BBC News | Business | World Edition | 26 Oct 2008 | 3:18 pm

Ugly October can't end soon enough

NEW YORK (Reuters) - Whichever way this week plays out on Wall Street, the market is likely to close out an October that stock investors would rather forget.

Source: Reuters: Business News | 26 Oct 2008 | 3:05 pm

Ugly October can't end soon enough (Reuters)

Reuters - Whichever way this week plays out on Wall Street, the market is likely to close out an October that stock investors would rather forget.

Source: Yahoo! News: Business | 26 Oct 2008 | 3:05 pm

ETF Investing: Market meltdown opens door to tax swaps, rebalancing

BOSTON (MarketWatch) -- This year's precipitous stock-market decline has at least one bright spot for exchange-traded fund investors in the form of tax swaps that can be used to offset future gains when markets eventually recover.

Source: MarketWatch.com - Top Stories | 26 Oct 2008 | 3:03 pm

Porsche says it controls 74% in VW

German sportscar maker Porsche said Sunday that it now controls 74.1 percent in Volkswagen, Europe's biggest automaker, via a 42.6 percent direct equity stake and options giving it another...
Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Oct 2008 | 3:02 pm

Chuck Jaffe: Be open to big discounts on closed-end stock funds

BOSTON (MarketWatch) -- Bullish investors like to spin the current market problems as saying that the downturn has put great names "on sale."

Source: MarketWatch.com - Top Stories | 26 Oct 2008 | 3:01 pm

NewsWatch: GDP expected to show contraction, confirm recession

After nine months of job losses, declining output, lower sales and falling incomes, the final proof that the nation has tipped into recession will likely arrive in the coming week.

Source: MarketWatch.com - Top Stories | 26 Oct 2008 | 3:00 pm

French leaders welcome decision to clear IMF head

French political leaders on Sunday welcomed the decision to clear International Monetary Fund head Dominique Strauss-Kahn of harassment or favouritism following an affair with a colleague.
Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Oct 2008 | 2:43 pm

BP's Sutherland agrees to stay until summer-paper

LONDON, Oct 26 (Reuters) - BP Plc Chairman Peter
Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Oct 2008 | 2:03 pm

Kuwaiti traders protest as Gulf shares plunge

Kuwaiti traders staged another walkout on Sunday and protested outside the stock market as shares in the oil-rich Gulf region plunged amid growing expectations of a global recession.
Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Oct 2008 | 1:58 pm

Israel heads for elections as effort to form coalition fails

Israel is heading for early elections, perhaps in mid-February, after the head of the ruling Kadima Party fails to form a coalition.

Source: MarketWatch.com - Top Stories | 26 Oct 2008 | 1:56 pm

Israel's Delek to build power plant for Tnuva

Group said a 57 percent-owned unit of its subsidiary
Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Oct 2008 | 1:49 pm

Darling spending plan 'misguided'

A government plan to spend its way out of the looming recession is "misguided and discredited" say leading economists.
Source: BBC News | Business | World Edition | 26 Oct 2008 | 1:40 pm

Central banks poised to act (Reuters)

Reuters - Central banks are likely to launch new coordinated emergency action this week to calm panic in financial markets, which could be rocked further by data pointing to global recession.

Source: Yahoo! News: Business | 26 Oct 2008 | 1:36 pm

IMF official cleared of harassment

The International Monetary Fund says its chief, Dominique Strauss-Kahn, didn’t abuse his power in connection with a sexual relationship he had with a female subordinate.

Source: MarketWatch.com - Top Stories | 26 Oct 2008 | 1:34 pm

MUFG may raise up to $10.6 bln in capital: sources

TOKYO (Reuters) - Mitsubishi UFJ Financial Group , Japan's largest bank, is considering raising up to 1 trillion yen ($10.6 billion) to replenish its capital, people familiar with the matter said.

Source: Reuters: Business News | 26 Oct 2008 | 12:44 pm

Swiss prosecutors examine UBS conduct: reports (Reuters)

Reuters - Swiss prosecutors are considering opening an investigation into the conduct of the management of UBS AG during the subprime crisis, two newspapers reported on Sunday.
Source: Yahoo! News: Business | 26 Oct 2008 | 12:43 pm

Swiss prosecutors examine UBS conduct: reports

ZURICH (Reuters) - Swiss prosecutors are considering opening an investigation into the conduct of the management of UBS AG during the subprime crisis, two newspapers reported on Sunday.
Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Oct 2008 | 12:43 pm

Swiss prosecutors examine UBS conduct: reports

ZURICH (Reuters) - Swiss prosecutors are considering opening an investigation into the conduct of the management of UBS AG during the subprime crisis, two newspapers reported on Sunday.

Source: Reuters: Business News | 26 Oct 2008 | 12:43 pm

Economic Preview: GDP expected to show contraction, confirm recession

After nine months of job losses, declining output, lower sales and falling incomes, the final proof that the nation has tipped into recession will likely arrive in the coming week.

Source: MarketWatch.com - Top Stories | 26 Oct 2008 | 12:38 pm

PM says banks want rescue merger

Merging Lloyds TSB and HBOS is the best option and still the only way forward, according to the prime minister.
Source: BBC News | Business | World Edition | 26 Oct 2008 | 12:30 pm

LSE considering Furse successor

The London Stock Exchange says it has begun considering who will replace chief executive Clara Furse in the future.
Source: BBC News | Business | World Edition | 26 Oct 2008 | 12:24 pm

NewsWatch: Defensive-minded mutual funds fail to shield market's blows

NEW YORK (MarketWatch) -- Mutual funds that use short-selling and other hedging tactics are billed as attractive ways for retail investors to access the sophisticated market-beating approaches available to institutional and wealthy investors.

Source: MarketWatch.com - Top Stories | 26 Oct 2008 | 12:00 pm

Alaska Airlines Links Seattle-Minneapolis St. Paul

Customers can take advantage of introductory one-way fare of $130 SEATTLE, Oct. 26 /PRNewswire-FirstCall/ -- Alaska Airlines today inaugurated service between Seattle
Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Oct 2008 | 12:00 pm

Gas prices fall again

Gasoline prices fell again, tumbling to the lowest price in a year, according to a daily survey of credit card swipes released Sunday.

Source: Business and financial news - CNNMoney.com | 26 Oct 2008 | 11:58 am

Companies Beyond Financial Sector Want Bailout Cash, A Bad Idea (C)(WFC)(NCC)(WB)

Too many mouths to feed. Someone will have to starve.

Now that Henry Paulson has $700 billion and some discretion about how to spend it companies from car manufacturers to airlines want a piece. So do some municipalities. Insurance companies are already in the "salvation system", or at least AIG (AIG) is. But, its $123 billion came from a pot all of its own.That means Treasury has a bit more money.

It is not unreasonable to think that "strategic" industries like automobiles should get a Brink's truck of bullion. The trouble is that Paulson may find financial firms need more money than projected. Right now Treasury has $250 billion ear-marked for equity investments. Tens of billions of dollars, or perhaps more, will go for the original plan of buying toxic paper.

If Wall St. considers that massive write-downs that NCC (NCC) and Wachovia (WB) made when they were taken over, it gives some picture about how bad off banks may really be. NCC is a modest-sized bank and it will take almost $20 billion in charges. Wells Fargo (WFC), Wachovia's new owner, says write-offs after the buy-out could be a large multiple of the NCC number.

Several analysts recently wrote that Citgroup (C) may not make money until 2010. What the total cost of future capital going into the big money center banks is hard to calculate.

But, Paulson had better save the entire $700 billion for the banking system. He is going to need it.

Douglas A. McIntyre

Source: 24/7 Wall St. | 26 Oct 2008 | 11:48 am

China's top aluminum maker Chalco net dives 92 percent

HONG KONG (Reuters) - Aluminum Corp of China Ltd , the world's No.3 alumina producer, said on Sunday its third quarter net profit dived 92 percent, dented by high production costs and...
Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Oct 2008 | 10:39 am

China's top aluminum maker Chalco net dives 92 percent

HONG KONG (Reuters) - Aluminum Corp of China Ltd , the world's No.3 alumina producer, said on Sunday its third quarter net profit dived 92 percent, dented by high production costs and sliding aluminum prices amid weakening demand in a slowing world economy.

Source: Reuters: Business News | 26 Oct 2008 | 10:39 am

Gazprom doesn't need loans for investments-paper

has enough funds to complete this year's investments
Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Oct 2008 | 10:39 am

KeyCorp, Capital One to receive cash infusion: source

WASHINGTON (Reuters) - KeyCorp , Zions Bancorp and Capital One Financial Corp are some of the banks that will receive cash under the U.S. government's second round of capital infusions, a
Source: Infocious RSS raw feed - channel BNewsBusiness | 26 Oct 2008 | 9:15 am

KeyCorp, Capital One to receive cash infusion: source (Reuters)

Reuters - KeyCorp , Zions Bancorp and Capital One Financial Corp are some of the banks that will receive cash under the U.S. government's second round of capital infusions, a source familiar with the Treasury Department's thinking said on Sunday.

Source: Yahoo! News: Business | 26 Oct 2008 | 9:15 am

KeyCorp, Capital One to receive cash infusion: source

WASHINGTON (Reuters) - KeyCorp , Zions Bancorp and Capital One Financial Corp are some of the banks that will receive cash under the U.S. government's second round of capital infusions, a source familiar with the Treasury Department's thinking said on Sunday.

Source: Reuters: Business News | 26 Oct 2008 | 9:15 am

Energized by solar solutions

The gig: President and chief executive of San Luis Obispo-based REC Solar, one of the nation's largest installers of solar photovoltaic systems. The company installs rooftop solar systems on homes and...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Oct 2008 | 7:00 am

Acute economic crisis may cure the nation's chronic materialism

It's a stat we hear time and again: Consumer spending accounts for more than two-thirds of the U.S. economy. It was the reason President Bush famously (or infamously) urged Americans shortly after the...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Oct 2008 | 7:00 am

Tackling a mortgage meltdown of their own

A couple hope a bad real estate investment won't hinder college plans for their triplets.

Michael and Esther Maston had hoped the fertility drugs would work, but they weren't ready for the news that they were going to have triplets: a boy and two girls.

Source: L.A. Times - Business | 26 Oct 2008 | 7:00 am

San Fernando Valley home sales climb 82% as prices fall

Sales of existing single-family houses climbed 82% in the San Fernando Valley in September as median prices fell by 37% from year-earlier levels, the Southland Regional Assn. of Realtors reported last...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Oct 2008 | 7:00 am

Tackling a mortgage meltdown of their own

A couple hope a bad real estate investment won't hinder college plans for their triplets. Michael and Esther Maston...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Oct 2008 | 7:00 am

Business letters

When student debt dwarfs future earning power

Source: L.A. Times - Business | 26 Oct 2008 | 7:00 am

San Fernando Valley home sales climb 82% as prices fall

Source: L.A. Times - Business | 26 Oct 2008 | 7:00 am

Do you live in a fire zone? Consider buying flood insurance

Mudslides that damage or destroy buildings often follow blazes that denude hillsides, and that loss isn't covered by your homeowner's policy. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Oct 2008 | 7:00 am

Keeping your home insured in a fire zone

Though many companies have dropped home coverage in the state, it's still obtainable -- you just have to make your home fire-safe, do a lot of legwork and pay high premiums.

It's the peak of what is now a year-round fire season. And throughout Southern California, homeowners in blaze-prone regions are having a hard time finding fire insurance. ¶ Tens of thousands of homes are in the region's brushy canyons, with still more under construction. The powerful blazes of the last few years have raised questions about whether people should be encouraged to live in such areas -- and insurance companies have begun to fight back, dropping some customers and raising prices for others. ¶ "The market is frightening, for sure," said Paul Cashman, a State Farm Insurance agent. "Some companies aren't writing any policies, some are not renewing in selected areas, and some will offer policies only on a place-by-place basis." ¶ Still, it is possible to insure most properties -- if you are willing to do a lot of legwork and pay high premiums.

Source: L.A. Times - Business | 26 Oct 2008 | 7:00 am

Keeping your home insured in a fire zone

Though many companies have dropped home coverage in the state, it's still obtainable -- you just have to make your home fire-safe, do a lot of legwork and pay high premiums. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Oct 2008 | 7:00 am

Grappling with debt in the financial crisis

As the economy deteriorates, people are increasingly asking questions about debt and its effect on their finances. Here are some answers on this topic.

Dear Readers: As the economy deteriorates, more of you are submitting questions about debt and its effect on your finances. Today's column is devoted to providing answers on this topic.

Source: L.A. Times - Business | 26 Oct 2008 | 7:00 am

Acute economic crisis may cure the nation's chronic materialism

It's a stat we hear time and again: Consumer spending accounts for more than two-thirds of the U.S. economy. It was the reason President Bush famously (or infamously) urged Americans shortly after the Sept. 11, 2001, terrorist attacks to keep shopping and "get down to Disney World in Florida."

Source: L.A. Times - Business | 26 Oct 2008 | 7:00 am

Grappling with debt in the financial crisis

As the economy deteriorates, people are increasingly asking questions about debt and its effect on their finances. Here are some answers on this topic. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Oct 2008 | 7:00 am

Do you live in a fire zone? Consider buying flood insurance

Mudslides that damage or destroy buildings often follow blazes that denude hillsides, and that loss isn't covered by your homeowner's policy.

If you own a home in California, chances are you already have some type of fire insurance. But many people don't realize that it's flood insurance -- not fire insurance -- that protects them from the mudslides that often follow the state's wind-blown autumnal blazes.

Source: L.A. Times - Business | 26 Oct 2008 | 7:00 am

Business letters

When student debt dwarfs future earning power
Source: Infocious RSS raw feed - channel BNPaperBusiness | 26 Oct 2008 | 7:00 am

IMF director cleared over affair

IMF director Dominique Strauss-Kahn is cleared of harassment over an affair with a colleague, but criticised for a "serious error of judgement".
Source: BBC News | Business | World Edition | 26 Oct 2008 | 6:58 am

Probe clears IMF chief of abuse of authority

The head of the International Monetary Fund made a "serious error of judgment" in having an affair with a colleague but did not abuse his authority during the episode, the IMF's governing board has concluded
Source: FT.com - US homepage | 26 Oct 2008 | 3:41 am

Alistair Darling in bid to protect battered sterling

ALISTAIR DARLING will this week try to restore confidence in Britain’s economy and the pound by saying the government has not abandoned its budgetary rules.
Source: Latest Business News from Times Online | 25 Oct 2008 | 11:00 pm

BG Group fires up £2 billion takeover of Queensland Gas

BG GROUP is in talks on a £2 billion takeover of Queensland Gas, just six weeks after it withdrew a bid for a larger Australian rival.
Source: Latest Business News from Times Online | 25 Oct 2008 | 11:00 pm

Insurers next for state bailout

AEGON, the giant European insurance group, is in weekend talks with the Dutch government about the possibility of joining a €20 billion (£16 billion) state recapitalisation scheme.
Source: Latest Business News from Times Online | 25 Oct 2008 | 11:00 pm

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