MEXICO

The World Health Organization warned on Wednesday that a global flu pandemic was imminent, raising its threat level as the swine flu virus spread and killed the first person outside of Mexico, a toddler in Texas.

Using a new tracking tool, search engine giant Google said on Wednesday it saw a spike in searches for information about flu among people in Mexico last week even before news of the outbreak became widely known.

U.S. airline shares rallied on Wednesday, partially erasing two days of steep losses, as markets decided that the swine flu outbreak might not significantly crimp travel demand.

A Mexican toddler in Texas has died of the new swine flu virus, the first confirmed death outside Mexico, as the World Health Organization said the outbreak showed clear signs of spreading around the world.

This first swine flu death in the U.S. has been confirmed in Texas with the death of a 23 month old toddler, this is first death of its kind to take place outside of Mexico.

Stocks extended gains on Wednesday on better-than-expected earnings and government data that suggested companies may start to rebuild inventories, even as the economy shrank more than expected in the first quarter.

Burger King Holdings reported a higher quarterly profit as a lower tax rate and cost controls helped offset March weakness at its company-operated restaurants.

Germany confirmed its first three cases of swine flu on Wednesday, marking the arrival of the virus in the heart of continental Europe.

Barely 100 days in office, President Barack Obama is facing his first domestic emergency with the outbreak of swine flu and is seeing yet again how fresh challenges can erupt from the unlikeliest of places.

A 23-month-old child in Texas has died from the new H1N1 swine flu, becoming the first U.S. death from the virus, a U.S. Centers for Disease Control and Prevention official said on Wednesday.

A baby in Texas has died of the H1N1 flu strain, the first confirmed death outside Mexico from the virus, which health officials fear could cause a pandemic as it spread to two more countries.

President Barack Obama said on Wednesday that the first U.S. death from a new strain of swine flu showed it was time to take utmost precautions against its possible spread.

Asian stocks dropped for a second day on Tuesday and Japanese shares hit a one-month low, with investors fretting about the potential economic fallout if the swine virus outbreak becomes a full-fledged pandemic and the results of U.S. bank stress tests.

Airline shares around the world largely took another hit on Tuesday on fears of steep falls in business and leisure traffic because of the swine flu outbreak.

Global airlines could face an even bumpier landing than during the 2003 SARS crisis if a new swine flu outbreak becomes a pandemic, hitting an industry that is already reeling from the global economic downturn.

The U.S. swine flu caseload rose to 65 in six states on Tuesday as lawmakers launched emergency hearings to evaluate the government's response to what doctors warn could become a pandemic.

New swine flu infections were found around the world on Tuesday and the specter of a pandemic began to hit the travel industry as governments warned people to stay away from Mexico where 149 people have died.

U.S. stocks fell on Tuesday as fresh worries that major banks may need to raise more money offset more reassuring economic data that suggested the worst may be over and a big dividend boost from IBM.

Companies began restricting employee travel in response to a potential flu pandemic that has claimed at least 149 lives in Mexico and weighed stronger measures, while an unconfirmed case at Ernst & Young led the firm to close a portion of its New York office.

Oil prices fell on Tuesday on concerns the swine flu outbreak could further depress fuel demand, already hard hit by the global financial crisis.

Stocks rose on Tuesday as IBM's dividend boost and reassuring data that could point to a bottom in the slow economic cycle offset worries that major banks may need to raise more money.