The Dow Jones Industrial Average rallied 485.21 points today to 10,850.55, paring much of yesterday's 777.68-point loss—its worst-ever single-day showing. The credit markets, on the other hand, got skewered as LIBOR, the interest rate banks charge each other, rose 4.05 percent from yesterday's 3.88 percent for 3-month dollar-denominated loans, and from 5.22 percent to 5.27 percent for 3-month euro loans.
European markets were up on the back of confidence that Congress can patch together and pass a bailout plan. "The Dow Jones Euro Stoxx index of 50 leading shares rose 1.0 percent, to 3,036.98 points. Britain's FTSE 100 rose 1.7 percent, while France's CAC-40 added 2.0 percent and Germany's DAX edged up 0.4 percent," reports Forbes. Shares of several flagging European banks receiving capital injections from governments fared better during today's trading sessions.
General Motors plans to ax several contract jobs. GM spokesperson Dan Flores would not disclose the exact number of positions to be cut; however the AP writes "the decision will cause the loss of about 8,350 jobs."
Eleven of the 53 California members of the U.S. House of Representatives have advised the Department of Justice against blocking a possible advertising deal between Google and Yahoo. The delegation wrote in a letter that impeding the deal out of antitrust worries "could detrimentally affect the online advertising market and electronic commerce."
Belgium and France injected 6.4 billion euros of capital ($9.2 billion) into Paris- and Brussels-based bank Dexia amid the deepening financial crisis. This the second government-backed bailout of a European bank this week, following the Benelux countries' lifeline of 11.2 billion euros into Belgian bank Fortis.
The credit markets, including credit-default swaps, which played largely into AIG's tumble, could pose more risk to the U.S. economy than the stock market, BusinessWeek argues. Cities, which issue muncipal bonds, are having a hard time coming up with money, and "swap spreads, as measured by the CDX, an index of the most commonly traded CDS, rose to 163.7 at the end of last week."
A federal grand jury in New York is investigating accounting and disclosure issues at mortgage companies Fannie Mae and Freddie Mac. The two companies, which were taken into government conservatorship earlier this month, received supoenas on Friday instructing them not to destroy any documents.
New York Mayor Michael Bloomberg plans to run for a third term in office, three people close to the politician told The New York Times. Currently he is barred by term limits, however it is expected he will push for new legislation in the New York City Council.
Democratic and Republican House leaders are set to hash out a legislative deal to pass the $700 billion bailout package after it was voted down yesterday. Treasury Secretary Henry Paulson was quoted as saying, "I will continue to work with congressional leaders to find a way forward to pass a comprehensive plan to stabilize our financial system and protect the American people by limiting the prospects of further deterioration in our economy," according to the Washington Post.
A team of mathematicians at University of California-Los Angeles discovered a 13-million-digit prime number, known as the "Mersenne" prime. The group has "appeared" to have won $100,000 for their efforts, reports the Los Angeles Times.
Google is officially against Proposition 8, a measure on this year's California ballot that would ban gay marriage in the state. Sergey Brin, the co-founder of the search engine company said that Google usually does not take political sides, however "it is the chilling and discriminatory effect of the proposition on many of our employees that brings Google to publicly oppose Proposition 8," he was quoted as saying.
Renee Bowman, a Maryland mother of three adopted children, has been put in jail for allegedly freezing the remains of two of her daughters. She had been receiving $2,400 a month in government subsidies to help care for her children.
A stampede near a Hindu pilgrimage site in Jodhpur, India, resulted in at least 147 fatalities and another 55 injuries. Some 12,000 to 20,000 people had gathered there for the nine-day festival of Navratri.
For the first time in Austria's history, neither of the two major parties pulled more than 30 percent of the vote. The far-right Austrian Freedom Party pulled 18 percent during the election this week in what German newsmagazine terms a benefit "from voter dissatisfaction."
Two bomb blasts, one each in the western Indian towns of Malegaon and Modasa killed at least six. No one has claimed responsibility for the attacks. The blasts in the two predominantly Muslim towns occurred in markets filled with people preparing for Eid al-Fitr, the festival marking the end of the fasting month of Ramadan.
U.K. police have launched investigations into the Ebay auction of a digital camera loaded with images of terror suspects taken by British intelligence agency MI6. A man from the county of Hertfordshire bought the camera for £17, about $32, and took it on vacation to the United States, where in addition to the images, he found pictures of the suspects' names, fingerprints and photographs of missiles and launchers.
Some 50 Greek gay and lesbian activists protested yesterday against a move by a prosecutor on the island of Rhodes to annul two same-sex marriages. A lesbian couple and a gay couple got married in civil ceremonies on the Greek island of Tilos, taking advantage of a loophole in a 26-year-old law that does not stipulate gender.
An 85-million-year old fossil of a dinosaur called Aerosteon riocoloradensis found in Argentina shows evidence suggesting its lungs were like a bird's, argues University of Chicago paleontologist Paul Sereno. The finding, presented in yesterday's edition of online journal Public Library of Science One, is the latest to suggest birds evolved from dinosaurs.
A study led by neuroscientist Ivan de Araujo at Duke University showed that a preference for sweet food may be due to the high caloric value. Mice that were genetically altered to lack a receptor detecting sweetness began to prefer water sweetened with sucrose after six days because they "were able to associate the sweet solutions with caloric load post-ingestion," writes Scientific American.
Oakland Raiders head coach Lane Kiffin was fired today, four games into the season, and two days after the football team lost 28-18 to the San Diego Chargers, "blowing a two-score lead in the fourth quarter for the second straight week," writes the San Francisco Chronicle. Likely contenders to replace the head coach, according to the Bay Area paper, "are offensive line coach Tom Cable, defensive coordinator Rob Ryan, offensive coordinator Greg Knapp and advance scout Paul Hackett, a former USC coach and NFL offensive coordinator."
The Chicago White Sox beat the Detroit Tigers 8-2 yesterday, pushing the American League Central title bid to another game. The South Side Chicago team hosts the Minnesota Twins today for a one-time tiebreaker to determine who goes on to play A.L. East champion Tampa Bay Rays.