Central Banks Cut Rates Worldwide

In an unprecedented coordinated global action, central banks from the Americas to Europe cut their key lending rates early Oct. 8 in a bid to kickstart economic growth and ease investor anxiety that’s verging on panic. The rate cuts by the Federal Reserve, Bank of Canada, Bank of England, and European Central Bank didn’t, however, prompt positive response from many stock markets, which mainly fell Oct. 8.

Source: Wall Street Journal

England Unveils Huge Bank Bailout Plan

The beleaguered British government rolled out a surprisingly ambitious plan to bolster Britain’s top banks. The program includes $88 billion to help rebuild capital reserves via government stakes in the banks, and as much as $800 billion to short up short- and medium-term loans between banks.

Source: The Guardian, BusinessWeek

Credit Suisse CEO Not Focused on Bailout

Even as banks in other countries are receiving big government—backed bailouts, Brady Dougan, CEO of Zurich-based Credit Suisse, told investors he’s not counting on one from Switzerland—and doesn’t need a capital boost anyway.

Source: Dow Jones

Chunnel Fire Hits Eurotunnel Traffic

A blaze in the Channel Tunnel last month has already prompted a 6% sales decline for its operator, Eurotunnel, which estimates it has foregone $30 million in lost revenues. Passenger traffic on the Eurostar train, however, rose.

Source: Times of London

Economy Dominates McCain, Obama Debate

The economic crisis dominated the second presidential debate between Senators John McCain and Barack Obama. McCain used the debate to unexpectedly propose a new housing plan and downplay personal attacks on Obama. The Democratic Party’s nominee blamed President Bush for the current financial crisis and repeatedly linked McCain to the unpopular president.

Source: Politico

Stock Market Slumps Erases $2 Trillion in Retirement Savings

The stock market’s 15-month free fall has erased $2 trillion in Americans’ retirement savings, Congress’ top budget analyst said. Companies will still need to pay out the same pensions promised to employees, but will have to figure out other ways to make up the difference.

Source: Washington Post

Symantec Buys MessageLabs

Symantec, the world’s biggest security software maker, bought MessageLabs for $695 million. Symantec is hoping that by acquiring the online messaging and Web security services company, it will strengthen its position overseas and in instant message security.

Source: East Bay Business Times

AMD Spins Off Chip Operations

Advanced Micro Devices is spinning off its chip-making operations into separate businesses called Foundry Co. and receiving a cash infusion of more than $8 billion from two Abu Dhabi companies. The world’s No. 2 chip maker has lost money for two consecutive years, but now gets a new lease on life.

Source: San Jose Mercury News

Three Chemists Awarded Nobel Prize

Japan’s Osamu Shimomura and Americans Martin Chalfie and Roger Tsien were awarded the Nobel Prize in chemistry for discovering and developing green fluorescent protein, or GFP, that revolutionized the ability to study disease and normal development in living organisms.

Source: Scientific American

Conversation of the Day: Fixing Microsoft

Reader ChuckO writes: “Isn’t somebody already doing all this? Oh yeah, they’re called Apple. And when they don’t have the resources to do something, they don’t do it.”

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Hot Topic on the Business Exchange: Credit Crunch

Lauren Young and others are sharing their insights on the latest developments in the credit crunch.