AP - Business: CBSNews.com

RBS's Share Price Plunges 39 Percent, Amid Turmoil

Tue, 07 Oct 2008 07:17:31 EDT

Shares in Royal Bank of Scotland Group PLC plunged 39 percent in early trading on Tuesday, as investors worried the British government is not doing enough to boost banks' balance sheets in the financial crisis.

Thrift Shops Thrive Amid Economic Downturn

Tue, 07 Oct 2008 07:17:50 EDT

Forget about the outdated notion of thrift shops as the refuge of the working poor, the down and out or the vintage fashion hipster. In these troubled times, the powerful lure of a secondhand retail bargain is attracting a whole new breed of customer.

Opel, Daimler, Ford Curb Production

Tue, 07 Oct 2008 07:16:56 EDT

German carmaker Daimler AG joined GM subsidiary Adam Opel AG and the German unit of Ford Motor Company on Tuesday in announcing production cutbacks given the current financial situation.

Union: Aer Lingus To Cut Up To 1,500 Jobs

Tue, 07 Oct 2008 07:16:37 EDT

Aer Lingus Group PLC is planning up to 1,500 job cuts, Ireland's SIPTU trade union said Tuesday.

UN Calls For Review On Biofuel Subsidies

Tue, 07 Oct 2008 06:17:46 EDT

A U.N. agency on Tuesday called for an urgent review of agriculture and biofuel subsidies and trade barriers, saying their removal would increase opportunities for developing countries to take advantage of rising biofuel demand.

Iceland's Banks Falter

Tue, 07 Oct 2008 01:16:33 EDT

Iceland's banks face a battle for survival Tuesday after government introduced emergency legislation to give itself sweeping new powers over its collapsing financial sector.

Slow Economy Hits State Sales Tax Revenue

Tue, 07 Oct 2008 01:16:50 EDT

State tax revenue rose slightly in the second quarter, but revenue from sales tax, fuel tax and property tax all dropped compared to a year ago, according to a report released Tuesday. The report warned that states and cities would be forced to cut spending as tax revenues dropped further.

ECB, Euro Nations Try To Soothe Volatile Markets

Mon, 06 Oct 2008 20:17:36 EDT

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 needed for as long as necessary.

Credit Markets Still Tight As Stocks Plunge

Mon, 06 Oct 2008 19:18:33 EDT

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 U.S. banks' mortgage assets.

Bank Of America Reports Profit Drop, Capital Raise

Mon, 06 Oct 2008 18:19:02 EDT

Bank of America Corp. on Monday reported its third-quarter results earlier than planned, revealing a 68 percent profit drop and plans to boost capital by selling stock and halving its dividend.

Citigroup Sues Wachovia, Wells Fargo For $60B

Mon, 06 Oct 2008 14:17:44 EDT

Citigroup Inc. said Monday it has filed a complaint in New York Supreme Court against Wachovia, Wells Fargo and the directors of both companies seeking more than $60 billion in damages for interfering with the bank's planned takeover of Wachovia's banking operations.

Germany Considers National Financial "shield"

Mon, 06 Oct 2008 12:17:13 EDT

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 institutions on a case by case basis.

Allianz Investing $2.5B In Hartford Financial

Mon, 06 Oct 2008 11:17:20 EDT

Hartford Financial Services Group Inc. said Monday it will receive a $2.5 billion investment from Allianz SE.

Official: Kashkari To Be Tapped To Head Bailout

Mon, 06 Oct 2008 10:12:46 EDT

An official says the administration has decided to pick a key Treasury Department official to be the interim head of its $700 billion rescue effort for financial institutions.

Treasury And Fed Pledge Rapid Response To Crisis

Mon, 06 Oct 2008 09:17:10 EDT

The president's top economic advisers are pledging to work with their counterparts around the world to restore confidence and stability to financial markets.

EBay To Cut 1,000 Jobs, Will Buy Bill Me Later

Mon, 06 Oct 2008 09:17:48 EDT

EBay Inc. said on Monday it will cut about 1,000 employees, reducing its work force by about 10 percent.

Treasury Announces Plan To Boost Debt Auctions

Mon, 06 Oct 2008 09:18:24 EDT

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

Unicredit's Profumo Acknowledges Errors

Mon, 06 Oct 2008 08:17:41 EDT

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 board to seek a capital increase and cut profit forecasts.

Eli Lilly Agrees To Buy ImClone For Over $6B

Mon, 06 Oct 2008 08:16:32 EDT

The drugmaker Eli Lilly & Co. says it has agreed to buy biotechnology company ImClone Systems Inc. for more than $6 billion in a deal that would expand its pipeline of cancer treatments.

Verizon Says $28.1B Buyout Of Alltel On Track

Mon, 06 Oct 2008 07:16:46 EDT

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.

SKorea Wants Financial Summit With China, Japan

Mon, 06 Oct 2008 07:16:01 EDT

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.

Asian Markets Plunge On Fears Crisis Is Spreading

Mon, 06 Oct 2008 04:16:12 EDT

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

Bank Of America Settles Lawsuit Over Bad Mortgages

Mon, 06 Oct 2008 00:16:34 EDT

Facing a lawsuit over deceptive mortgage practices, Bank of America Corp. has agreed to modify tens of thousands of loans to keep people in 11 states from losing their homes, the Illinois attorney general's office said Sunday.

Ex-CEO Of S&L Bought By Wachovia Defends Record

Sun, 05 Oct 2008 20:16:24 EDT

Once hailed for running their savings-and-loan company like an endearing mom-and-pop shop, Herb and Marion Sandler are now being vilified as ruthless home lenders who helped destroy Wachovia Corp. and contributed to the financial decay that led to the U.S. government's $700 billion rescue plan to buy rotten mortgages.

Investors Expect Volatility As Credit Woes Persist

Sun, 05 Oct 2008 18:16:17 EDT

The world's financial markets face an uncertain and possibly volatile week as investors await details about how the Treasury will implement the government's financial rescue package _ and watch for any further fallout from the credit crisis around the globe.

American Airlines Considers A La Carte Pricing

Sun, 05 Oct 2008 16:17:15 EDT

The idea of paying a single, simple fare to fly on an airliner is becoming as quaint as stewardesses in short skirts.

Bank On This: Bank Failures Will Rise In Next Year

Sun, 05 Oct 2008 16:16:20 EDT

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.

Credit Crisis Adds To Pressures On Auto Dealers

Sun, 05 Oct 2008 16:16:56 EDT

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 they'll keep their jobs, be able to pay for gas, or qualify for a car loan.

Financial Industry May Face New Rules Next Year

Sun, 05 Oct 2008 15:13:19 EDT

With the passage of the $700 billion rescue package, the financial industry will face greater congressional scrutiny in coming weeks and months.

Europeans Scramble To Save Failing Banks

Sun, 05 Oct 2008 12:17:07 EDT

Governments across Europe scrambled to save failing banks on Sunday, working largely on their own a day after leaders of the continent's four biggest economies called for tighter regulation and coordinated response to the global meltdown.

For Bailout To Work, Housing Market Needs To Mend

Sat, 04 Oct 2008 14:17:38 EDT

Washington's financial bailout plan is now law. So the credit spigot will start flowing again, banks will resume lending, and an economic recovery can begin, right?

EU Leaders Divided About Global Financial Crisis

Sat, 04 Oct 2008 10:16:59 EDT

Leaders of France, Britain, Germany and Italy will seek at a summit in Paris Saturday to reassure investors and markets jittery about a growing financial and economic crisis.

GM Launches New Traverse Crossover At Tenn. Plant

Sat, 04 Oct 2008 01:17:10 EDT

General Motors Corp. on Friday officially launched full-scale production of the new Chevrolet Traverse at its overhauled former Saturn plant on the outskirts of Nashville.

Paulson Vows To Speed Rescue To Financial System

Sat, 04 Oct 2008 01:16:44 EDT

Signed and sealed, the $700 billion bailout now must be delivered.

What A Pirouette _ 58 House Members Flip To 'yes'

Fri, 03 Oct 2008 17:16:18 EDT

The bill got better _ for some lawmakers. And back home, folks got scared after Monday's stock market plunge. Presidential candidates Barack Obama and John McCain stepped up the pressure, as did Capitol Hill bosses like House Speaker Nancy Pelosi.

Sept. Dividend Payouts Lowest For 3Q In 50 Years

Fri, 03 Oct 2008 15:19:24 EDT

Dividend cuts in the third quarter took $22.5 billion out of the pockets of investors during what one Standard & Poor's analyst called the worst September for dividends in more than 50 years.

Electric Cars Shine At Paris Auto Show

Fri, 03 Oct 2008 14:16:25 EDT

As the race to offer the first commercially viable electric car charges up, automakers hoping to cash in on environmental concerns displayed a slew of models at the Paris Motor Show on Friday.

Exports Fueled Slight Services Expansion In Sept.

Fri, 03 Oct 2008 12:16:43 EDT

Educational services, farms, utilities, stores and hospitals all saw their businesses expand slightly in September, thanks to strong exports and deliveries, a private research group's survey showed Friday.

AIG Plans Sale Of Business Units

Fri, 03 Oct 2008 09:17:49 EDT

The insurer American International Group Inc. said Friday it plans to sell off a number of business units to pay off its massive government loan, while retaining its U.S. property and casualty and foreign general insurance businesses.

Wells Fargo Acquiring Wachovia For $15.1 Billion

Fri, 03 Oct 2008 09:17:21 EDT

In an abrupt change of course, Wachovia said Friday it agreed to be acquired by San Francisco-based Wells Fargo & Co. in a $15.1 billion all-stock deal, trumping rival suitor Citigroup's plan to acquire Wachovia's banking operations.

UBS To Cut 2,000 Jobs At Its Investment Bank

Fri, 03 Oct 2008 07:17:34 EDT

Swiss bank UBS AG will cut 2,000 jobs at its troubled investment banking unit, most of which will be lost in the U.S. and Britain, an official said.

Toyota Announces Zero-percent Financing

Fri, 03 Oct 2008 07:17:12 EDT

Toyota Motor Corp. has announced zero-percent financing on 11 models as it tries to woo would-be buyers sidelined by the consumer credit crunch.

Japan's Norinchukin Buys Stake In Credit Agricole

Fri, 03 Oct 2008 05:18:16 EDT

Japan's Norinchukin Bank said Friday it has acquired a 0.5 percent stake worth about about 30 billion yen, or $286 million, in France's Credit Agricole SA, which has been shoring up its capital base after being hit by U.S. credit-related losses.

Column: Bailout Won't Cure Economic Stress

Fri, 03 Oct 2008 03:17:28 EDT

Once the government decides it will spend $700 billion to get the economy started again, don't expect immediate results.

Reports: Mitsubishi UFJ, Morgan Eye Japan Merger

Fri, 03 Oct 2008 03:16:22 EDT

Mitsubishi UFJ Financial Group Inc. and U.S. investment bank Morgan Stanley are weighing a merger of their brokerage units in Japan, media reports said Friday.

Manhattan Apartment Sales Drop Further

Fri, 03 Oct 2008 02:16:31 EDT

With the troubles on Wall Street looming over the city's real estate market, Manhattan apartment sales have dropped for the third consecutive quarter, according to two reports released Friday.

CEO, 5 Other WaMu Execs Leaving

Thu, 02 Oct 2008 22:17:36 EDT

The chief executive of failed Washington Mutual Inc. and five other senior executives of the largest U.S. thrift, now owned by JPMorgan Chase & Co., are leaving their positions soon.

Bailout Plan Offers Vague Help To Homeowners

Thu, 02 Oct 2008 19:18:18 EDT

The harsh reality for Murielle Montes and hundreds of thousands of homeowners who are behind on their mortgages is this: A $700 billion bailout of the financial industry will probably do little to help them avoid foreclosure.

Financial Crisis Moves From Wall St. To The Mall

Thu, 02 Oct 2008 18:18:26 EDT

Alarmed by the financial meltdown, stores nationwide are slapping sale signs on everything from fall sweaters to furniture _ frantically trying to attract shoppers who are cutting back.

Paris Motor Show Opens Under Shadow Of Crisis

Thu, 02 Oct 2008 11:16:21 EDT

The Paris Motor Show had both vroom and gloom as it opened Thursday under the cloud of global financial turmoil.

Factory Orders Drop By 4 Percent In August

Thu, 02 Oct 2008 10:16:11 EDT

Government data show orders to U.S. factories plunged by the largest amount in nearly two years as the credit strains are hitting manufacturing with full force.

Winemaker Constellation Brands Loses $23M

Thu, 02 Oct 2008 08:18:17 EDT

Constellation Brands Inc. says it lost nearly $23 million in its fiscal second quarter as strong wine and spirits sales were more than offset by charges to overhaul its operations in Australia.

Marriott 3Q Profit Slips Partly On Revpar Slowdown

Thu, 02 Oct 2008 08:17:56 EDT

Marriott says its third-quarter profit dropped 28 percent, partly hurt by softening North American revenue per available room _ a key measure for hoteliers _ and weakening timeshare business amid the global economic downturn.

Burger King Switches To Trans Fat Free Oil

Thu, 02 Oct 2008 07:18:43 EDT

Burger King Corp. said Thursday it is now cooking with trans fat free cooking oils at all of its restaurants nationwide.

UBS Expects Return To Profit In Third Quarter

Thu, 02 Oct 2008 07:18:19 EDT

Swiss bank UBS said Thursday it expects "a small profit" in the third quarter, raising hopes that a dismal year of U.S. sub-prime related losses _ to the tune of some 45 billion Swiss francs ($40 billion) _ may soon be over. The company's shares rose.

Asian Automaker Shares Tumble On US Sales Slump

Thu, 02 Oct 2008 05:19:19 EDT

Shares of major Asian automakers took a beating Thursday after they reported dismal September sales figures in the U.S., their most important overseas market.

New Nintendo DS Portable Will Come With Camera

Thu, 02 Oct 2008 04:18:51 EDT

Nintendo's hit DS portable machine will come with a digital camera that will allow players to mix images, scribble on photos and create new faces, the Japanese game maker said Thursday.

Outsourcing Aids Many Data Thefts, Verizon Says

Thu, 02 Oct 2008 01:16:17 EDT

The reliance of restaurant chains and retail stores on outside companies to handle credit-card processing and other information-technology functions is partly to blame for a rash of consumer data breaches over the last few years, according to data sleuths at Verizon Communications Inc.

Despite Financial Crisis, ECB Should Hold Steady

Thu, 02 Oct 2008 00:16:11 EDT

The European Central Bank is expected to hold its benchmark interest rate steady later Thursday as inflation fears outweigh the growing financial crisis.

SEC Extends Short-sell Ban For Financials

Wed, 01 Oct 2008 21:19:08 EDT

The government says it is extending its unprecedented ban against all short-selling in the shares of more than 800 financial companies.

Banks Want To Suspend Accounting Rule In Bailout

Wed, 01 Oct 2008 18:18:40 EDT

Congress has embraced an idea to help prop up the financial system: Give banks a break by letting them value their bad mortgage assets at a price they could fetch later, not now.

Report: ImClone's Secret Suitor Is Eli Lilly

Wed, 01 Oct 2008 17:18:24 EDT

Drugmaker Eli Lilly & Co. reportedly is the secret suitor courting ImClone Systems Inc. and is offering approximately $6.1 billion for the biotech company.

Stalled Tax Relief Bill Attached To Rescue Package

Wed, 01 Oct 2008 16:18:38 EDT

The Senate has sweetened its $700 billion rescue package for tottering financial companies with tax breaks broad enough to save 20 million people an average $2,000 a year in higher taxes and narrow enough to help a makers of wooden toy bow-and-arrow sets.

Candy With Chemical In Chinese Milk Found In Conn.

Wed, 01 Oct 2008 16:19:12 EDT

A chemical blamed for sickening infants in China has been found in candy on American shelves.

CarMax Laying Off 600 Service Workers

Wed, 01 Oct 2008 15:17:47 EDT

CarMax Inc. said Wednesday it is laying off 600 employees, or about 4 percent of its total work force, as the auto retailer tries to cut costs due to a decline in car and truck sales.

Buffett To Buy $3B Of GE Preferred Stock

Wed, 01 Oct 2008 15:16:44 EDT

Warren Buffett's Berkshire Hathaway Inc. is investing $3 billion in General Electric Co., a huge vote of confidence for an iconic American company battered by the credit crisis.

Florida Sues Merck To Recover Money Spent On Vioxx

Wed, 01 Oct 2008 15:17:27 EDT

Florida has joined eight other states in suing drugmaker Merck & Co. over what the state alleges was deceptive marketing of its former prescription painkiller Vioxx.

Ford's US Sales Drop 34 Percent In September

Wed, 01 Oct 2008 13:17:51 EDT

Tight credit, economic worries and high gasoline prices combined to cut Ford Motor Co.'s U.S. sales once again in September, with the beleaguered automaker reporting a 34 percent decline from the same month last year.

Gov't Launches Mortgage Aid Program

Wed, 01 Oct 2008 12:15:23 EDT

The government is kicking off a program that aims to prevent foreclosures by letting an estimated 400,000 troubled homeowners swap their mortgages for more affordable loans.

Construction Activity Unchanged In August

Wed, 01 Oct 2008 10:17:11 EDT

Construction activity was unchanged in August even though spending for residential projects posted the first increase in 17 months, a rare bit of good news in the midst of the worst housing downturn in decades.

Borders Issues Warrants To Pershing Square Capital

Wed, 01 Oct 2008 10:17:49 EDT

After failing to find a buyer, Borders Group Inc. has been forced to issue warrants to Pershing Square Capital Management, giving its biggest shareholder even more control over the Ann Arbor, Mich.-based bookseller.

EU Fines 9 Companies Over Wax Cartel

Wed, 01 Oct 2008 10:18:09 EDT

The European Union on Wednesday imposed one of its highest ever cartel fines on a "paraffin mafia" accused of fixing prices and markets for everyday household products like chewing gum, tires and candles.

Xstrata Drops Bid For Platinum Miner Lonmin

Wed, 01 Oct 2008 07:18:21 EDT

Anglo-Swiss mining giant Xstrata PLC dropped its US$10 billion bid for British rival Lonmin PLC on Wednesday, saying the turmoil on the financial markets makes a takeover of the world's No. 3 platinum producer too risky.

Money Not The Motive For Many To Work Until 67

Wed, 01 Oct 2008 07:17:41 EDT

For medical office manager Sue Stein, working past the typical retirement age was a choice she made because she's still having fun at her job and likes the lively banter with the young medical students around her.

Euro Jobless Rate Climbs To 7.5 Percent In August

Wed, 01 Oct 2008 07:18:00 EDT

The jobless rate in the 15 nations that share the euro climbed again in August to 7.5 percent as worries over European economic growth deepened, EU statistics agency said Wednesday.

Yum Brands To Add Calorie Info To Menu Boards

Wed, 01 Oct 2008 07:17:20 EDT

Want to know how many calories are in that burrito or fried chicken you're ordering? Fast-food company Yum Brands Inc. says it's taking the guesswork out of counting calories.

Roosevelt Talk On Unstable Economy Oddly Prescient

Wed, 01 Oct 2008 04:18:11 EDT

The "mirage" of American economic invulnerability has vanished, along with "much of the savings of thrifty and prudent men and women," the presidential hopeful told the crowd.

FDIC Urges Temporary Hike In Insured Deposit Limit

Tue, 30 Sep 2008 20:18:56 EDT

The agency that protects U.S. bank deposits is asking Congress for temporary authority to boost deposit insurance limits as the government works to contain the financial crisis.

GAO: FAA Cannot Auction Flight Slots

Tue, 30 Sep 2008 16:19:14 EDT

Congressional investigators say U.S. aviation officials have no legal authority to auction off flight slots, a scheme the government devised to try to cut crippling traffic jams at major airports.

Pfizer Shifts Focus To Cancer And Biotech Drugs

Tue, 30 Sep 2008 12:18:53 EDT

Pfizer Inc. is shifting its research focus to diseases that have high potential for treatment improvements, such as cancer and Alzheimer's disease, and where it can be a market leader.