Talks about an Alitalia merger with Air France-KLM collapsed Wednesday. The Italian airline has been losing $1.6 million every day for more than a year, and the failure to broker a merger deal prompted its chairman Maurizio Prato to resign.
Though there seems no end in sight to the bad news on Wall Street, some investors are undaunted and looking to pick up bargains as the economy slumps. Forbes looks at the possibilities, and recalls the adage “When blood is running in the streets, the way to make money is to buy assets."
Testifying before Congress today, Federal Reserve Chair Ben Bernanke defended the Fed’s move to prop up investment bank Bear Stearns. "Given the exceptional pressures on the global economy and financial system, the damage caused by a default by Bear Stearns could have been severe and extremely difficult to contain,” he said.
In partnership with record labels Warner Music, Sony BMG and Universal Music, MySpace is launching MySpace Music, a service that will allow users to listen to music and watch videos for free, as well as buy concert tickets.
The S&P 500 was up 0.3 percent to 1,371.55 at 12:43 p.m. EDT after earlier losses of 0.7 percent. The Dow Jones Industrial Average and the New York Stock Exchange were each up 0.2 percent. Stocks of commodities companies such as oil company ExxonMobil and agribusiness Monsanto mitigated losses stemming from loan delinquencies and high unemployment claims.
Indianapolis-based airline ATA filed for bankruptcy today, cancelling all flights. Once America’s 10th largest airline, its charter service was not successful enough to offset high fuel prices. Passengers showing up at Chicago’s Midway Airport to check in for morning flights were met with a completely empty counter.
“For at least 16 months after the Sept. 11 terror attacks in 2001, the Bush administration believed that the Constitution's protection against unreasonable searches and seizures on U.S. soil didn't apply to its efforts to protect against terrorism,” USA Today reports.
A man in Rome returned to the surgery where he had recently received painful dental work and shot his dentist in the legs. The dentist afterwards admitted to police that he was only a technician and not qualified to practice.
The Greek and Turkish sides of Cyprus have reopened Ledra Street, the demarcation between the two sides of capital city Nicosia. The crossing had been flanked by military checkpoints since the Turkish invasion in 1974.
Members of a “doomsday cult” in Russia’s Penzey Region have broken all negotiations with government officials, and remain locked in an underground cave used as a hideaway. Pyotr Kuznetsov, the group’s leader, made a suicide attempt, according to Russia Today.