FED FUNDS RATE: The Fed's 25-basis-point rate cut dealt a blow to expectations of a larger reduction to help the economy recover from a housing slump and tight credit
Disappointment at the US Federal Reserve's modest 25 basis point cut in interest rates dented Asian stocks yesterday, but expectations of further Fed action helped limit losses and boosted demand for government bonds.

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FRESH START: The firm picked Vikram Pandit, a former Morgan Stanley president, to succeed Charles Prince at the biggest bank in the US
Vikram Pandit, Citigroup Inc's newly appointed chief executive officer, may cut costs and sell assets to shore up capital in the face of growing mortgage losses.

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Opening thorny trade talks with China on Wednesday, US Treasury Secretary Henry Paulson said that the rising interdependence of the two economies required flexible exchange rates, guarantees of product safety and reduced trade barriers.

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The chief executive of Freddie Mac estimated on Tuesday that the mortgage finance company would lose an additional US$5.5 billion to US$7.5 billion over the next few years as the housing crisis worsens and home-loan defaults rise.

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Officials from German chemical giant BASF AG said on Tuesday they remained hopeful they could get EU approval to start cultivation of their genetically engineered potato by next year's growing season.

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