Reuters - With California facing a $42 billion deficit in the current economic downturn, a glum Gov. Arnold Schwarzenegger has warned that the Golden State is on the brink of insolvency.

AP - Oil prices fell to below $46 a barrel Monday in Asia after White House officials warned Sunday the U.S. recession will likely worsen in coming months, undermining demand for crude.

AP - British consumers opted to pay off debts rather than go on a pre-Christmas spending spree, the banking industry's main lobby group said Monday, in another sign of the difficult retailing climate.

AP - Oil prices crawled back above $46 a barrel Monday after falling more than $1 as White House officials warned the U.S. recession would likely worsen in coming months, undermining demand for crude.

AP - Oil prices were below $46 a barrel Monday in volatile trading as White House officials warned the U.S. recession would likely worsen in coming months, undermining demand for crude.

AFP - US fast-food giant McDonald's said Monday its 2008 net profit soared 80 percent from a year, lifted by growing demand from consumers seeking low-cost meals in a deepening global recession.

AFP - US construction equipment giant Caterpillar announced Monday that it intends to cut about 20,000 jobs worldwide to cope with plunging sales amid a sharp economic slowdown.

BusinessWeek Online - The past six months have offered lively debate over various plans to stimulate the U.S. economy. One of the more intriguing, if far-fetched, ideas that has been raised, including on BusinessWeek.com, is a populist stimulus scheme in which the federal government would move from the $300 and $600 rebate checks of recent years to serious money: $1 million for each of us.

AFP - US President Barack Obama on Monday faced a week of tests on the economy, with a Senate vote on his treasury secretary pick and personal outreach to Republicans fiercely fighting his giant stimulus plan.

AP - A flood of federal bailout money pushed a private research group's monthly forecast of economic activity unexpectedly higher in December, while a decline in home prices boosted housing sales.

AFP - Home Depot, a top US home improvement retailer, said Monday it would cut 7,000 jobs as part of restructuring to cope with a deepening recession.

AP - Oil prices jumped above $47 a barrel Monday, riding the coattails of rising equity markets despite signs of a deepening recession.

AFP - The US government should probably help commercial banks to recover by buying some of the 'toxic assets' weighing down on them, former top White House economist Laura Tyson said Monday.

AFP - General Motors announced plans Monday to cut 2,000 jobs at two US plants as it slashes production in the wake of a sharp drop in demand and amid a deepening recession.

Reuters - An unexpected improvement in U.S. home sales provided a rare bit of good economic news on Monday, while companies announced more mass layoffs as the yearlong recession continues to take its toll.

Reuters - A tidal wave of layoffs washed across the world on Monday, sending tens of thousands of workers into joblessness as the pain of the global recession worsened.

AP - Oil prices fluctuated Monday as investors weighed gains in the equity markets against signs of a deepening recession that could further eat away at energy demand.

AP - The recession is killing jobs at an alarming pace, with tens of thousands of new layoffs announced Monday by some of the biggest names in American business — Pfizer, Caterpillar and Home Depot.

Reuters - The Federal Reserve has almost exhausted its options for tackling the financial crisis, underscoring the need for President Barack Obama's $825 billion economic recovery plan, the White House said on Monday.

AP - The World Economic Forum will search for solutions to the financial crisis with some 40 world leaders — but without the top finance officials of the new U.S. administration, occupied by the crisis or by the confirmation process at home.

AP - Oil prices fell Monday as investors weighed early gains in the equity markets against signs of a deepening recession that could further eat away at energy demand.

AFP - The US Senate voted Monday to confirm Timothy Geithner as US treasury secretary, despite misgivings over his personal tax problems and ongoing government efforts to rescue the battered US economy.

AFP - Timothy Geithner was sworn in as US Treasury Secretary on Monday and pledged quick action to help restore the crumbing US economy that was left reeling from a fresh wave of job losses.

Reuters - President Barack Obama not only has to convince skeptical Republicans to back the $825 billion economic stimulus package, he must also win over fiscally conservative Democrats who are demanding he work on balancing the government's checkbook.

Reuters - Honda Motor Co (7267.T), Japan's second-biggest carmaker, announced further production cuts in North America and Japan, as the industry struggles with weak demand in a brutal economic downturn.