Wall Street was punished as a spike in unemployment claims and continued uncertainty about the auto industry prompted even more worries of a deep recession.
The Dow tumbled 444 points, or 5.5 percent, to 7,552. The S&P 500 was knocked down by 54 points, or 6.7 percent, to 752. The Nasdaq shed 70 points, a drop of 5 percent, to 1,316.
Crude oil prices closed at lows not seen since May 2005.
SPEAKER: Alan Valdes, vice president of trading, Hilliard Lyons
Conway Gittens reports from New York.
GM and Chrysler kept low profiles at the L.A. Auto Show as the Detroit 3 automakers beg for bailout money.
General Motors cancelled press events, and their honchos were no-shows at the prestigious auto show. Fred Katayama reports.
The International Monetary Fund bails out Iceland with Turkey and Latvia close behind.
* Putin promises Russians protection from past shocks
* Peugeot, AstraZeneca, Rolls Royce announce lay-offs
U.S. stocks touched lows not seen since October 2002 after a spike in unemployment claims added to fears the economy is rapidly sinking.
Stocks made a sizable dent in early morning losses by lunchtime, but analysts warn of more volatile days ahead.
SOUNDBITE: Liz Miller, president, Summit Place Financial Advisors
Conway Gittens reports from New York.
A walking house designed by Danish art collective N55 explores nomadic living in the 21st century.
Donna Lynas, Director of Wysing Arts Centre in the UK which commissioned the project says the house is inspired by a utopian idea of the future where the whole world would be free to roam. The Cambridgeshire-based centre has explored ideas of neighbourliness and lifestyles in a series of projects called, 'Communities Under Construction.'
EU farm ministers agree to move away from production-based subsidies and divert funds to rural developments.
It is the EU's most significant farm reform since 2003, which introduced the concept of 'decoupling'. That is EU jargon for breaking the link between how much farmers produce and how much subsidy they receive - the old system criticised in the devloping world for distorting trade and encouraging over-production that created the bloc's infamous 'grain mountains'.
As the Obama administration takes shape, so do worries about how the government will pay for any healthcare reforms.
Private-public partnerships may be a way to create sustainable health coverage for the 47 million uninsured in the US, says Angela Braly, CEO of WellPoint, the largest U.S. health insurer.
Manoush Zomorodi reports.
The Bush administration's Troubled Asset Relief Program, or TARP, was criticized on Capitol Hill for not doing enough to stop home foreclosures or helping the auto industry.
On Wall Street, a volatile session finished with the Dow up 151 points to 8,424. The S&P 500 climbed 8 points to 859. The Nasdaq crept one point higher to 1,488.
Oil prices fell to $54.39 a barrel.
SPEAKER: Henry Paulson, U.S. Treasury Secretary
Conway Gittens reports from New York.
GM, Ford and Chrysler were on the hot seat on Capitol Hill as they pleaded with lawmakers to pass a $25 billion rescue package.
Democrats in the Senate support a loan package arguing that up to three million U.S. jobs would be lost from an auto industry collapse. Most Republicans are opposed to an auto industry bailout arguing that the rescue package is not a wise use of taxpayer money.
Jon Decker reports.
The brand name of the Latvian-invented camera favoured by spies worldwide lives on in Germany.
The revolutionary Minox camera was invented by Waltar Zapp and produced in Latvia in the 1930s and the brand still lives on in Germany where everything from everyday cameras to spy gadgets are still made under the famous name.
President-elect Barack Obama is relying on a team of Washington veterans, including several who worked for former President Bill Clinton, to staff his transition.
Peer-to-peer lending gets new interest as banks keep a tight rein on credit.
Thanks to the internet, peer to peer lending is gaining new traction. But risks remain and both borrowers and investors must tread carefully. Bobbi Rebell reports.
GDP figures show the 15 countries in the euro zone have entered recession with further gloomy prospects for the fourth quarter results.
This is already having an impact on the real economy with some jobs in the steel and car industry on the line in the face of falling demand and investment cuts.
Analysts say investors had better beware false rallies like the one that occurred after the 1929 stock market crash.
The Dow rallied 24 percent over the next five months following the stock market crash, only to turn south again. Stocks fell 89 percent from their peak. Fred Katayama reports from New York.
When the economic going gets tough, the tough open a new shopping centre.
The largest inner-city shopping centre in Europe opens for business in London despite consumers tightening their belts amid fears of a global recession.
China scoops its first major overseas deal for a home-grown aircraft but the world aviation industry as a whole is in a tail spin.
The biennial Zhuhai gathering is a major showcase for the international aviation industry and is particularly significant in the current financial climate as many major players bank on China's potential as the world's largest aviation market to help them weather the economic storm.
Both political parties are making a strong pitch this year for young voters-- in recognition of how large and how vocal this demographic group is.
For Barack Obama, youth voters have been a reliable demographic group at rallies and in terms of getting out the vote on college campuses. The big question now is whether all of these young voters will actually come out and vote on election day.
Jon Decker reports.
Japan brings forward short selling restrictions in a bid to curb market turmoil.
The Ministry of Finance, the Financial Services Agency and the Tokyo Stock Exchange will also launch an investigation into naked short selling to determine if there have been any illegal practices. Naked short selling is when traders effectively sell stocks without first borrowing them to sell
As global auto sales stall, General Motors and Chrysler announce cuts and intensify merger discussions.
Sources tell Reuters that GM is exploring other plans if talks with Cerberus, Chrysler's owner, fail.
The US government could also provide aid to the ailing automakers, say experts.To date, Chrysler sales have dropped 25% while GM's have dropped 18%.
Manoush Zomorodi reports.
By Jonathan Stempel
NEW YORK (Reuters) - Citigroup Inc faced a crisis of confidence on Wednesday as investors questioned the survival prospects of the U.S. banking giant, and its shares tumbled 23 percent to a 13-year low.
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NEW YORK (Reuters) - Citigroup Inc is looking at multiple options as its share price sinks, including selling businesses, selling shares, or merging with another firm, a person familiar with the matter said.
So far discussions regarding its options have been...
By Fayen Wong
PERTH (Reuters) - Oil fell over $1 to hover below $56 a barrel on Monday, near its lowest in almost two years after a meeting of the Group of 20 major economies ended with few actual proposals on how they would combat a global recession.
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By Joan Gralla
NEW YORK (Reuters) - New York City's securities companies shed 16,000 employees in October, measured on a year-over-year basis, pushing the total work force down to a level last seen September 2005, a state labor analyst said on Thursday.
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WASHINGTON (Reuters) - A key Republican Senator said on Sunday it was "pretty clear" a $25 billion bailout proposal for U.S. automakers will fail in the U.S. Senate, while Democrats argued saving the industry was critical to the U.S. economy.
The Senate is s...
By Alexandria Sage
SAN FRANCISCO (Reuters) - Gap Inc posted higher quarterly net profit on Thursday, topping Wall Street expectations, helped by lower inventory and cost cutting that boosted margins and offset a decline in sales.
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