The government is to offer insurance to banks against their losses from toxic debt as it tries to encourage them to lend again.

Industrial output in Japan fell 8.5% in November, the biggest drop on record, government figures show.

Royal Bank of Scotland is heading for a record UK deficit, while the government's stake in RBS will rise to nearly 70%.

The Ukrainian and Russian prime ministers are expected to sign a deal, enabling gas to be flowed into Europe again.

Reuters - Asian stocks pushed higher on Monday and the dollar lost ground as investors looked for U.S. President-elect Barack Obama to quickly roll out hefty economic stimulus spending and a revived plan to buy bad bank assets.

Reuters - Royal Bank of Scotland said it made a loss of over 20 billion pounds ($30 billion) last year, the biggest loss in British corporate history, including a huge goodwill hit on its purchase of parts of ABN AMRO in 2007.

Reuters - France could take stakes in carmakers in exchange for financial assistance to the battered auto industry, French industry minister Luc Chatel said ahead of a meeting on Tuesday at which aid measures should be announced.

The government of Prime Minister Gordon Brown on Monday announced a new bailout for the British financial system that increases its control over lenders.

The eurozone economy will shrink 1.9% in 2009 and grow by only 0.4% in 2010, the European Commission forecasts.

The French government could take a bigger stake in its carmakers in return for financial aid, says Industry Minister Luc Chatel.

Nationalised lender Northern Rock has been given longer to pay back its £26bn government loan in a bid to boost lending.

Reuters - World stocks rose on Monday while government bonds fell after Britain launched a multi-billion rescue plan for its troubled banks and the incoming U.S. administration planned more measures to help the economy.

Reuters - Britain launched a second bank rescue plan on Monday, one of the recipients, Royal Bank of Scotland, recorded the biggest loss in British corporate history and Japan said bad loans worldwide had further to climb.

Reuters - Royal Bank of Scotland said it made a loss of over 20 billion pounds ($30 billion) last year, the biggest loss in British corporate history, including a huge goodwill hit on its purchase of parts of ABN AMRO in 2007.

Reuters - France could offer financial assistance to the battered auto industry in exchange for stakes in carmakers, French industry minister Luc Chatel said, ahead of a meeting Tuesday at which aid measures should be announced.

AP - Danish lawmakers have agreed on a 100 billion kroner ($18 billion) rescue package of loans for banks and mortgage lenders to prevent the credit crunch from deepening.

The government of Prime Minister Gordon Brown on Monday announced a new bailout for the British financial system that increases its control over lenders.

Europe?s gains followed earlier rises in Asia. Wall Street will be closed for the holiday.

Italy's troubled airline Alitalia is facing its first official strike, less than a week after its relaunch as a privately-owned company.

Jaguar Land Rover says it is halting work at its car plant in Castle Bromwich, Birmingham, for two weeks.

Confidence in the latest bank bailout by the British government seemed to erode as the day went on. Wall Street will be closed for the holiday.

The last fiscal year was a banner one for the military, with forces meeting or exceeding their recruitment goals for the first time since 2004.

The euro falls against the dollar on weak economic news in Europe, while the pound dropped amid worries about UK banks.

Royal Bank of Scotland shares plunge 63% as the bank says it is heading for a record UK loss of up to £8bn.

Why the bank insurance plans are vital for lending

The government of Prime Minister Gordon Brown on Monday announced a new bailout for the British financial system that increases its control over lenders.

The last fiscal year was a banner one for the military, with forces meeting or exceeding their recruitment goals for the first time since 2004.

The latest measures to encourage banks to raise their lending are vital to help protect jobs, says Gordon Brown.

Italy's troubled airline Alitalia has to cancel flights after facing its first official strike less than a week after its relaunch as a privately-owned company.

Shares in Ireland's three remaining publicly-listed banks plunge as the government presses ahead with plans to nationalise Anglo Irish Bank.

The Ukrainian and Russian prime ministers are expected to sign a deal, enabling gas to be flowed into Europe again.

Can the music industry still bring in the money?

British banking shares fall despite the government's announcement of a second package of measures to help the sector.

Reuters - Fiat is talking with Chrysler LLC to form a strategic partnership that could lead to the Italian car maker taking a stake in its U.S. peer, an industry publication said, citing people familiar with the matter.

Forcing banks to make loans may be politically satisfying, but it won?t fix the financial system.

The new bailout for the British financial system increases the government?s control over lenders.

Members of The New York Times?s interactive news team are answering questions from readers Jan. 19-23, 2009.

The government's latest steps to encourage banks to lend more has met with mixed reaction from politicians, and sent finance shares tumbling.

The largest maker of networking equipment may disrupt its relationship with partners like I.B.M. and Hewlett-Packard.

Dual nationals who have more than one passport say having a choice can be helpful when traveling.

European governments are moving more forcefully to take control over banks after a first round of costly bailouts came up short.

Some legal experts say the European authorities may have a harder time winning the case because Microsoft may be losing market share.

The number of passengers buying premium tickets dropped 11.5 percent in November; sales in economy class declined 6 percent.

Food prices rose 11.9% in 2008, after years of food price deflation, research from Verdict Consulting shows.

AP - For years, retailers could afford to be sloppy about running their businesses because customers kept buying.

Lines of credit for home developers is no longer a matter of payment history, but of risk analysis and management in a shrinking real estate market.

Woolworths applies to the High Court for an administration order, while negotiations over the firm's share in DVD publishing firm 2Entertain continue.

Reuters - Fiat is talking with Chrysler LLC about giving it access to its technology in exchange for a stake in the U.S. car maker, a source close to the Italian group said on Monday.

Crisis-hit Russians learn how to survive a downturn

UK inflation is tipped to show a sharp fall when official figures for December are released later.

Reuters - Fiat SpA is in talks with Chrysler LLC over a possible stake in the struggling U.S. automaker, a source close to the Italian group said on Monday.

The employment office in Columbia, S.C., offers a snapshot of the economic challenges facing Barack Obama, as well as the mixture of hope and skepticism that greets his arrival.

Governments in Europe and the U.S. are moving to assure that bailed-out banks lend more money to offset the recession that has engulfed both continents.

The New York Times Company approved a $250 million investment late Monday night by the Mexican billionaire, Carlos Slim Helú.

The billion-dollar scandal at Satyam Computer Services has some Indians questioning the notion of a new India and raised fears that corruption remains endemic.

Russia's Gazprom resumes gas supplies to Europe via Ukraine, Ukrainian Prime Minister Yulia Tymoshenko says.

A court battle betwen M&T and Deutsche Bank demonstrates the arguments over who should pay for the collapse of collateralized debt obligations.

The New York Times Company approved a $250 million investment late Monday night by the Mexican billionaire, Carlos Slim Helú.

Women in a remote Amazon village weave baskets for export to the U.S., aiming for ?productive conservation? that protects the environment and offers better lives for the weavers and their communities.

Anheuser-Busch InBev and Heineken are preparing efforts to reach beer drinkers who have been watching their spending since the recession began.

Fiat is nearing a deal to take a 35 percent stake in Chrysler and begin selling small cars in the United States.

The number of passengers buying premium tickets dropped 11.5 percent in November; sales in economy class declined 6 percent.

For business travelers on a budgets who know where to look, the savings are significant.

Experts and lawmakers are calling for a law that would require that certain drugs be made or stockpiled in the United States.

An architect finds that his time in flight offers time to be reflective and to jot down sketches for projects big and small.

Once considered a relatively save haven, Australia?s mining-led economy ?will unwind scarily fast? in part because of slower-than-expected growth in China.

McKesson, a North American distributor of pharmaceuticals, said that it would buy the right to acquire the stores of an independent drugstore chain, Uniprix.

Wall Street banks are stuck in so many messes that their restructuring advising groups may not be as well-positioned as they had hoped.

Britain on Monday set the stage for a full takeover of its banking system. Now, Barack Obama is trying to figure out how to shore up this nation?s banking industry as its crisis snowballs.

Russia's Gazprom says gas supplies to Europe via Ukraine will resume in hours, ending weeks of disruption.

Reuters - Asian shares slumped on Tuesday on concerns that increasing woes in the global financial sector will deepen the world's economic downturn, highlighting the difficulties confronting incoming U.S. President Barack Obama.