Billionaire investor George Soros has given his gloomiest assessment of the state of the US and world economies. Speaking with BBC business editor Robert Peston Soros said that the acute phase of the credit crunch may be over but effects on the real economy are yet to be felt.
In a bid to save financial markets and economy from further turmoil the United States government agreed Tuesday evening to provide an 85 billion US dollars emergency loan to rescue the huge insurer AIG.
United States current account trade deficit increased by 4.3% to 183.1 billion US dollars in the second quarter of this year, up from 175.6 billion in the first quarter, the US Commerce Department reported Wednesday.
The United States Federal Reserve left interest rates unchanged at 2% on Tuesday arguing slower economic growth but also warning about an inflation outlook highly uncertain.
Bank of America is to buy Merrill Lynch in a deal worth 50 billion US dollars that will create a new financial giant. The deal came amid a hectic weekend on Wall Street, with Lehman Brothers announcing that it would file for bankruptcy protection.
Executives at United States investment bank Lehman Brothers are racing to meet a deadline of Sunday night to find a new owner for the troubled bank, the BBC has learned.
The United States stopped trying to be polite Friday in an escalating diplomatic shoving match with the populist leaders of Venezuela and Bolivia. Washington slapped new sanctions on three aides close to Venezuelan President Hugo Chavez and called him weak and desperate. The Venezuelan ambassador got the boot for good measure, a move that was purely for show. Chavez had already brought his man home.
Memorial services are set to be held to mark the seventh anniversary of the 11 September 2001 attacks on the US.
Rising oil prices swelled the United States trade deficit in July to its widest level since March 2007, according to the latest government figures. The trade deficit widened to 62.2 billion US dollars from an upwardly revised estimate of 58.84 billion in June.
Troubled US investment bank Lehman Brothers has reported a massive third quarter net loss and outlined radical plans to strengthen its finances.