Worldwide Financial News

U.S. Stocks Drop as Consumer Spending Slumps, Dell Earnings Miss Estimates U.S. stocks fell, paring the biggest monthly gain since April, as consumer spending slumped and lower- than-estimated earnings from Dell Inc. dragged down technology companies.

Consumer Spending in U.S. Slowed in July as Prices Rose Most in 17 Years U.S. consumer spending grew at a slower pace in July as the impact of the tax rebates faded and a pickup in inflation eroded Americans' buying power.

GM Recalls 944,000 Cars, Trucks for Electrical Flaw in Windshield Wipers General Motors Corp., the largest U.S. automaker, recalled 944,000 sedans, sport-utility vehicles and pickup trucks worldwide because of a potential short circuit in a system that heats windshield-wiper fluid.

Commerzbank Is Near Agreement With Allianz to Buy Dresdner for $13 Billion Commerzbank AG, Germany's second- biggest bank, is close to an agreement to buy Dresdner Bank from Allianz SE for about 9 billion euros ($13.3 billion), two people with knowledge of the matter said.

Merrill's Mallach Quits After Being Demoted as Head of Fixed-Income Sales Merrill Lynch & Co.'s Doug Mallach, one of two executives heading the securities firm's U.S. bond division when the subprime mortgage crisis struck last year, is stepping down three months after being shifted to a lesser role, people familiar with the matter said.

Agency Mortgage-Securities Yield Spreads Narrow to Lowest Level in a Month Yields on agency mortgage securities fell to the lowest in a month relative to U.S. Treasuries after buyers took advantage of some of the widest spreads since 1986.

Alitalia Seeks Bankruptcy Protection, Allowing Start of Government Bailout Alitalia SpA said it was insolvent and asked for protection from creditors, a move that will kick start a government-backed plan to sell the state-controlled carrier.

General News

McCain Selects 44-Year-Old Alaska Governor Sarah Palin as His Running Mate Republican John McCain picked 44- year-old Alaska Governor Sarah Palin as his running mate, a surprise choice designed to attract women voters and blunt concerns about his age.

Obama Pledges to Restore `America's Promise,' Says McCain `Doesn't Get It' Barack Obama accepted the Democratic nomination for president, mixing a soaring pledge to preserve the ``American promise'' with a sharp attack on John McCain's judgment on the war, the economy and support of George W. Bush.

Tropical Storm Gustav Aims at Cuba, Gulf of Mexico After Drenching Jamaica Tropical Storm Gustav moved across western Jamaica with torrential rain today, picking up speed as it headed toward Cuba and the Gulf of Mexico cities that were ravaged by hurricanes Katrina and Rita in 2005.