World News

From The Financial Times

Obama lead forces McCain on to attack

An increasingly frantic Republican party, which has watched Barack Obama restore a strong lead, has indicated that it plans to "take off the gloves" – in the words of Sarah Palin – by questioning Mr Obama's patriotism

Fed takes steps to bolster liquidity

The Federal Reserve said it would increase the size of its key TAF lending facility to commercial banks, pay interest on excess reserves to smooth liquidity operations, and allow money market funds to borrow via banks to fund their holdings of commercial paper

Paulson protégé chosen to run bail-out

Hank Paulson has appointed Neel Kashkari, a protégé from his days at Goldman Sachs, to run the US government's plan to purchase troubled assets from financial institutions

Gulf of Mexico output still at only half capacity

Many oil and natural gas companies used the shutdowns in the wake of hurricanes Gustav and Ike last month for maintenance work, affecting supplies and raising petrol prices

Fed's first foray into unsecured loans

The Federal Reserve is working with the US Treasury on plans for a dramatic move into unsecured lending in the hope that this extreme step could help bring credit markets back to life

Sinking feeling as fall in US jobs spreads

JPMorgan economists have compared the US labour market with a boat sailing through rough seas. In September, according to figures released at the end of last week, there were "159,000 men and women overboard"

Funds dry up in Golden State

California's economy, which would be the eighth biggest in the world if the state was a separate country, is teetering on the brink of a financial crisis intensified by the credit crunch

Obama to hit back at McCain tactics

Barack Obama is expected to hit back aggressively against John McCain after the Republican gave the go-ahead to a fresh wave of attacks against the Illinois senator's character and patriotism as the Democrat consolidates his lead in the presidential race

New law extends legal mandate for intervention

The US authorities intend to use new powers contained in the $700bn bail-out legislation signed into law on Friday to prevent the disorderly failure of any more systemically important financial institutions

Beijing cancels US military exchanges

China has cancelled a series of military exchanges with the Pentagon following a US decision to sell $6.5bn in weapons to Taiwan

Why it is all uphill for McCain

Voters can tolerate only so much unpredictability in a politician. Zeal to reform government is fine. A passion to win difficult wars can be admirable. A daring taste in running mates is refreshing. All of the above, however, begins to make people nervous, writes Clive Crook

US defence industry attacks delay to UK pact

Weapons companies attack the Senate foreign relations committee for its decision to delay a treaty designed to bolster Anglo-American defence co-operation until the next Congress

US to go ahead with $6bn Taiwan arms deal

The US plans to sell $6.5bn in weapons to Taiwan as part of a long-awaited package intended to boost the island's ability to defend itself

California may seek $7bn emergency loan

Arnold Schwarzenegger, California's governor, has told the federal government that upheaval in the credit markets could leave his state in need of an emergency $7bn loan to pay for public services such as law enforcement, hospitals and firefighting.

Deal could wreak havoc on candidates' plans

As the gavel dropped and the US House of Representatives passed a $700bn bail-out, attention immediately turned to how Hank Paulson, US Treasury secretary, would ùse his new power and what impact intervention of such a scale would have on a new president and Congress.