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Bloomberg.com

Economy

Argentine Default Looms as Seizure of Private Pensions Roils Bonds, Stocks
Argentina's planned seizure of $29 billion of private pension funds stoked concern the nation is headed for its second default in a decade.

Bank of England Voted Unanimously for Emergency Half-Point Rate Reduction
Bank of England policy makers voted unanimously to lower the benchmark interest rate by the most since 2001 in an emergency meeting this month on signs that Britain had entered a recession.

Hungary Increases Key Rate to 11.5% in Emergency Measure to Defend Forint
Hungary raised its benchmark interest rate by 3 percentage points, the biggest increase in five years, and pledged measures to shore up the economy after steps to halt the flight of investors failed.

King Says Bank of England Will Act `Promptly' as Recession Seems Likely
Bank of England Governor Mervyn King said Britain's worst banking crisis since World War I is likely to push the economy into a recession, requiring policy makers to act ``promptly'' to prevent inflation from slowing too much.

New Home Sales in U.S. Will Decline by 12% Next Year, Mortgage Bankers Say
U.S. new-home sales will fall 12 percent next year as housing starts drop by a record, Mortgage Bankers Association Chief Economist Jay Brinkmann said.

Bank of Japan May Pay Interest on Deposit Reserves, Morgan Stanley Says
The Bank of Japan may announce next week that it will start paying interest on reserves lenders deposit at the central bank to counter the global financial turmoil, Morgan Stanley said.

New Zealand May Slash Benchmark Rate By Record 100 Basis Points Tomorrow
New Zealand central bank Governor Alan Bollard will probably cut interest rates tomorrow by a record amount to limit damage from the global financial crisis.

Brown Predicts First U.K. Recession Since Labour Came to Power in 1997
Prime Minister Gordon Brown predicted the U.K. will slip into a recession for the first time since he took charge of Britain's finances in 1997.

Paulson Plans to Buy Mortgages, Use `Leverage' to Aid Struggling Borrowers
Treasury Secretary Henry Paulson aims to intensify efforts to stem record mortgage foreclosures, using part of the government's $700 billion financial-rescue fund to purchase home loans.

Barney Frank Wields Bailout Clout to Restrain Private Equity, Hedge Funds
U.S. Representative Barney Frank is walking through Statuary Hall in the Capitol, a portrait of rumples and wrinkles. His left shirttail hangs out over his belt. Reporters and photographers are hounding him. Cameras are whirring. Questions are being shouted.

Bank of England Voted Unanimously for Emergency Rate Cut: Table of the Day
The following table details the changes in the Bank of England's benchmark interest rate.


Fed Watch

Fed Will Provide $540 Billion to Help Money-Market Funds Meet Redemptions
The Federal Reserve will provide up to $540 billion in loans to help relieve pressure on money-market mutual funds beset by redemptions.

Bernanke Backs Consideration of Second Stimulus Package on `Weak' Outlook
Federal Reserve Chairman Ben S. Bernanke endorsed additional fiscal stimulus, saying the credit crunch is ``hitting home'' as Americans find it harder to get loans, threatening a prolonged economic slump.

Fed's Lockhart Says U.S. Weakness to Persist, Easing Inflationary Pressure
The continuing freeze in credit markets will result in weak U.S. economic growth well into next year while dampening inflationary pressures, said Dennis Lockhart, president of the Federal Reserve Bank of Atlanta.