Business with Reuters - International Herald Tribune

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The Federal Reserve Building in Washington.

Fed effectively cuts benchmark U.S. rate to zero

By EDMUND L. ANDREWS AND BRIAN KNOWLTON

The Federal Reserve on Tuesday cut its target for a key interest rate to the lowest level on record and pledged to "employ all available tools" to combat a severe financial crisis and prolonged recession.

Goldman Sachs posts $2.12 billion loss

By BEN WHITE

The bank sidestepped earlier losses by staying out of the high-risk subprime mortgage market and taking an early bet against the U.S. housing industry.

The mysteries that linger over Lehman's bankruptcy

European car sales plunged in November

Bloomberg News

The headquarters of Opel in Ruesselsheim, Germany. The image of Opel, GM's German subsidiary, is suffering among German consumers because of the U.S. bankruptcy speculation.

Sales slumped 39 percent at General Motors and 56 percent at Chrysler after the U.S. companies told Congress they were running out of cash.

MARKETS

U.S. stocks soar as Fed cuts rate to lowest level ever

By JACK HEALY

Stock prices climbed more than 4 percent across the board as investors cheered the Fed's attempt to help revive the economy.

Paulson does not expect any more major financial institutions to fail during current crisis

Treasury Secretary Henry Paulson Jr. also said he had no plans to ask Congress to make the second half of the $700 billion financial rescue fund available before the administration of President George W. Bush leaves office on Jan. 20.

Merkel concedes need for more economic stimulus in Germany

By JUDY DEMPSEY

The chancellor said her coalition government would adopt additional measures next month amounting to "billions of euros."

Energy projects put on hold in response to lower prices

By JAD MOUAWAD

A Chevron refinery in California. Some analysts expect North American oil production to fall through 2010, helping oil prices rise.

Analysts say the investment cutbacks may set the stage for another rapid spike in oil prices once the global economy recovers.

U.S. consumer prices fell at record rate in November

By JACK HEALY

Prices fell 1.7 percent in November from the month before, led downward by tumbling energy prices.

Wall Street fraud leaves charities reeling

By STEPHANIE STROM

Around the United States, the nonprofit community is reeling from the Bernard Madoff scandal.

Inquiry finds no signs family helped Madoff with fraud

By ALEX BERENSON AND DIANA B. HENRIQUES

Bernard Madoff's sons and his brother all occupied senior positions at his firm.

EU court backs carbon-trading system

Bloomberg News

The high court found that limiting the scope to only a few sectors, like steel, at the start was not discriminatory.

U.K. inflation risks falling below 1% in 2009, central bank warns

Reuters

Data showed British inflation fell to 4.1 percent in November from 4.5 percent, still more than double the central bank's target.

Belgian government to fight shareholders over sale of Fortis

By DAVID JOLLY

Prime Minister Yves Leterme said a deal with BNP was "the best guarantee for the continuity of Fortis Bank Belgium."

The Belgian prime minister, Yves Leterme, has vowed to challenge a court decision that would subject to a shareholder vote its plan to sell Fortis, the troubled financial services company, to the French bank BNP Paribas.

HSBC may need to raise billions, some analysts say

Louis Vuitton drops plans for flagship store in Tokyo

Reuters

While luxury goods companies remained optimistic until recently, the mood has turned sour as the impact from the global financial crisis has grown.

Microsoft and Alcatel-Lucent settle most patent suits

Bloomberg News

Microsoft, the world's biggest software maker, and Alcatel-Lucent settled most of their patent litigation, officials of the two companies said Tuesday.

Playing catch-up, Dell looks to make acquisitions

By ASHLEE VANCE

Dell has responded to a changing market by investing heavily in design, and it offers some of the sleekest personal computer systems on the market.

Dell, once the world's largest PC vendor, was famous for relentless growth, but its direct-sales business model and cost-squeezing supply chain management no longer give it the advantages they once did.