Second bank in Belgium is saved by bailout Dexia became the second Belgian bank this week to get a government and shareholder bailout Tuesday when Belgium, France and Luxembourg said they would inject almost $9.2 billion to keep it afloat. Dexia's CEO Axel Miller -- who immediately stepped down -- said the bank had no choice but to ask for state help. Dexia, a French-Belgian specialist in lending to local governments that ran up huge losses in its U.S. operations, closed nearly 30 percent lower Monday -- triggering emergency talks with government officials. This came barely two days after Belgium, the Netherlands and Luxembourg pumped in $16.4 billion to save Fortis bank on Sunday; its shares had dropped by 20 percent Friday.
Irish government guarantees bank deposits Shares in Irish banks surged Tuesday after the government issued a sweeping guarantee to insure deposits and bank borrowings against a potential collapse. The government unveiled an unlimited guarantee on deposits at six banks one day after the Irish Stock Exchange suffered its greatest fall in history -- and rumors spread that wealthy foreign depositors were withdrawing their millions from Irish institutions.
Circuit City shares plummet below $1 Shares of Circuit City Stores Inc. dove nearly 30 percent Tuesday, The stock closed at 76 cents, down 32 cents, on a day when the broader market was heading upward. This happened despite word that the electronics chain, which replaced its chief executive last week, has hired turnaround firm FTI Consulting Inc. as an adviser, according to two people with knowledge of the appointment. FTI was hired to give advice on restructuring the second-largest U.S. consumer electronics company, according to the people, who declined to be identified because the information isn't public. The shares face delisting on the New York Stock Exchange unless the price moves back above a dollar. Shares of market leader Best Buy Co. Inc. went the other way, closing up 92 cents at $37.50.
Oilfield services firm's profits hurt by storms Disruptions from back-to-back hurricanes in the Gulf of Mexico are expected to crimp third-quarter earnings for Schlumberger Ltd., but the chief of the world's biggest oilfield services company said Tuesday that increased global exploration and other factors bode well for long-term business. During an investor conference in Houston, Schlumberger Chairman and Chief Executive Andrew Gould said it was impossible to predict how the ongoing financial crisis will affect energy demand, but he predicted robust business for global companies seeking new supplies of hydrocarbons.
Toyota develops window air bag for rear seats Toyota has developed a rear window air bag to upgrade protection for back-seat passengers, the company said Tuesday. Toyota said the rear window curtain-shield air bag, the world's first, will debut in the tiny "iQ" four-seat vehicle, which will go on sale in Europe and Japan later this year.
German employment rises for second month Germany's unemployment rate fell in September for a second consecutive month, the government said Tuesday. The unemployment rate in Europe's biggest economy was 7.4 percent, down 0.2 percent from August when the rate stood at 7.6 percent, the federal employment office said. The number of people unemployed stood at just over 3 million in September.
FROM NEWS SERVICES
