As It Happens

The world's financial markets face an uncertain and possibly volatile week as investors await details about how the Treasury will implement the government's financial rescue package -- and watch for any further fallout from the credit crisis around the globe.

With the passage of the $700 billion rescue package, the financial industry will face greater congressional scrutiny in coming weeks and months.

Here's a safe bet for uncertain times: A lot of banks won't survive the next year of upheaval despite the U.S. government's $700 billion plan to restore order to the financial industry.

Wachovia Corp., at the center of a fight between Wells Fargo & Co. and Citigroup Inc. over who will buy the beleaguered bank, is moving ahead with its deal to sell itself to Wells Fargo -- while questions arise about the damaging effects that prolonged litigation might have on Wachovia.

Germany became the latest country to move to allay fears about the financial meltdown, enhancing a rescue plan for Hypo Real Estate AG and guaranteeing private bank accounts as European governments scrambled on their own Sunday to save failing banks.

Germany on Sunday guaranteed all private bank accounts and negotiated a 50 billion euro bailout deal for Hypo Real Estate AG as Europe's second largest economy sought to ward off financial crisis.

Hundreds of thousands of new cars and trucks that would have quickly made their way to people's driveways a year ago are now stacking up on dealer lots across the country, with potential buyers worried about whether they'll keep their jobs, be able to pay for gas, or qualify for a car loan.

Washington's financial bailout plan is now law. So the credit spigot will start flowing again, banks will resume lending, and an economic recovery can begin, right?

The idea of paying a single, simple fare to fly on an airliner is becoming as quaint as stewardesses in short skirts. American Airlines is about to accelerate the trend of breaking the cost of a trip into an airfare plus many smaller fees.

Stocks are higher in early trading as government officials move closer to a deal aimed at saving the crippled financial system.

President Bush is bringing presidential candidates Barack Obama and John McCain into negotiations on a $700 billion rescue of Wall Street as Democrats and Republicans near agreement on a bailout plan with more protections for taxpayers and new help for distressed homeowners.

General Electric Co., whose shares have been battered by anxiety over the health of its big loan and lease business, lowered its earnings forecast on Thursday, saying the unit's profits were falling and that it was taking action to bolster its reserves.

New claims for unemployment benefits jumped last week to their highest level in seven years due to the impact of a slowing economy and Hurricanes Ike and Gustav, the Labor Department reported Thursday.

Orders for big-ticket manufactured goods plunged in August by the largest amount in seven months as demand for both airplanes and autos fell sharply.

Chicken producer Pilgrim's Pride Corp. said Thursday it expects to report a "significant loss" in its fiscal fourth quarter and will not be in compliance with one of its debt covenants.

Oil prices were down Thursday at under US$105 a barrel as investors weighed supply delays in the Gulf of Mexico against concerns that the U.S. credit crisis will slow global economic growth and hurt crude demand.

Discover Financial Services says its third-quarter profit dipped 11 percent, but surpassed Wall Street's expectations as card sales volume grew.

Delta and Northwest airlines are crossing off one more item on their checklist for becoming the world's biggest carrier, with shareholder votes at both companies Thursday expected to overwhelmingly back the deal combining the two.

Drugstore operator Rite Aid said Thursday its loss nearly tripled in its second quarter because of disappointing results from the Brooks Eckerd stores Rite Aid bought in 2007.