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This is Money
The Federal Reserve will make all efforts to ensure the US does not fall into a deflation trap, its vice-chairman said Wednesday, as US stocks plunged to their lowest level of the financial crisis. The comments by Don Kohn reinforced expectations that the Fed may cut rates again in December by as much as 50bp from their current 1%.
Fed vows to fight against deflation
U.S. stocks thudded sharply lower on Wednesday to finish at more than five-years lows, with financial powerhouse Citigroup Inc. pummeled by its greatest ever one-day percentage drop as fears intensified about its fate as well as the U.S. auto industry.
U.S. stocks thud to five-year lows as financials fall
Citigroup, once the world's biggest bank, saw more than $9bn (6bn) wiped off its value yesterday as its shares were locked in a downward spiral on Wall Street, amid fears the bank will lose billions more in the months ahead as bad debts pile up.
Citigroup loses $9bn as Wall Street plunges
Ambacs share price hit an all-time low on Wednesday, falling below $1 a share for the first time in the companys history as a public company. Why? A rather savage downgrade from S&P, which cut the bond insurers financial strength rating to A from AA, The outlook on the ratings is negative, meaning further cuts are likely in the medium term.
The death throes of the bond insurers
The head of Nomura, Japans largest broker, on Wednesday said the global liquidity crisis was over and a recovery of the global economy would depend on financial support from key governments, especially China.
Nomura chief says liquidity crisis over
The bosses of the big three US carmakers were lambasted for flying on corporate jets as they came to Washington to plead for money to stave off their companies' bankruptcy.
US car makers get frosty reception in bailout plea
Hopes of further aggressive interest rate cuts were boosted yesterday as it emerged that the Bank of England considered a drastic reduction in borrowing costs of two percentage points, or even more, this month.
Minutes of MPC meeting boost hope of further rate cut
It is OK to spread rumours, the Financial Services Authority has ruled after a seven-month investigation. But financial services workers who are regulated by the FSA must make clear that the gossip they are passing on is unsubstantiated.
FSA cracks down on rumours
The number of properties changing hands rose for the second consecutive month in October as sellers began to price their homes more realistically.
House sales pick up as sellers become realistic
A Labour MP has warned of a "looming disaster" on the high street as insurance firms have abruptly withdrawn vital credit coverage for suppliers to some of Britain's biggest retail chains.
Fears for high street retailers over lack of credit insurance
Russia has spent more than $58 bilion shoring up the rouble but advisers say the central bank is in control.
Kremlin denies plans to devalue currency
The Charles Schwab Corp. is not interested in buying competitor E*Trade Financial Corp., at least not before any potential bankruptcy, a Schwab executive said Wednesday at the firm's semiannual Business Update meeting.
Bettinger: Schwab not interested in E*Trade buy