MONEY MATTERS: The Dow Jones dropped when the US regulator decided to keep fund rates unchanged, but recovered after the Fed announced plans to bail out AIG
The US Federal Reserve on Tuesday forged an extraordinary US$85 billion rescue of insurance giant American International Group Inc (AIG), offering a respite from two days of chaos in the US financial system.

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A brother-in-law of ousted Thai prime minister Thaksin Shinawatra was elected Thai prime minister by parliament yesterday, but faced immediate opposition from protesters who vowed to force him from office.

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GOT MELAMINE?: The department said that it had taken legal action against two local companies that failed to account for suspect batches of imported products
By Shelley Huang
The Department of Health (DOH) yesterday announced its initial findings in the ongoing milk powder scare, saying that only one of the 22 Chinese companies suspected of selling contaminated food products had exported goods to Taiwan.

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By Charles Snyder
To the disappointment of Taiwan supporters in the US House of Representatives, the House Foreign Affairs Committee will not soon take up a bill the supporters introduced in late July aimed at pushing the administration of US President George W. Bush to lift a nearly year-long freeze on around US$12 billion in arms sales to Taiwan.

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China said yesterday that a third infant had died after drinking contaminated milk and the number of sick had leapt to many thousands, while an official said the health threat was concealed for at least a month.

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