UNITED STATES

China and India may be strong enough to make up for a slowdown in the world's largest economy

World stocks rebounded on Tuesday and the dollar fell sharply, hitting new record lows against the euro and Swiss franc, as speculation swirled that the U.S. Federal Reserve would meet to cut interest rates.

European shares rose early on Tuesday as tech and energy stocks helped the market bounce back from the previous session's sharp drop but banks such as UBS and Credit Suisse slipped again on credit market concerns.

Oil rebounded from early lows to trade above $95 a barrel on Tuesday, boosted by recovering stock markets after talk of another cut in U.S. interest rates to help economies navigate the credit crisis.

The dollar hit a record low against the euro on Tuesday as U.S. homebuilding permits fell to a 14-year low in October, stoking fears about housing sector weakness and expectations of lower U.S. interest rates.

Lehman Brothers Private Equity Partners Ltd has led the fundraising of nearly $10 million for Chinese travel search engine Qunar.com, in its first deal in China's consumer Internet sector, a source familiar with the situation said on Tuesday.

A group of investors led by U.S. buyout firm J.C. Flowers & Co LLC will bid about $1.8 billion for up to 32.6 percent of Shinsei Bank Ltd, putting more money into the Japanese bank it helped resurrect in one of the most lucrative private equity deals ever.

H&R Block Inc, the largest U.S. tax preparer, said on Tuesday that Chairman and Chief Executive Mark Ernst had resigned, following mounting losses tied to subprime mortgages.

Freddie Mac, the second-largest U.S. mortgage finance company, on Tuesday posted a wider third-quarter loss and missed analysts' estimates as a jump in failing loans forced it to set aside $1.2 billion. Its shares fell more than 14 percent before the market open after reporting a net loss of $2 billion, or $3.29 a share, compared with a loss of $715 million, or $1.17 a share, in the year-ago period.

The Ethiopian baby adopted by Hollywood actress Angelina Jolie was conceived after her mother was raped, the woman said this week.

Nintendo Co Ltd on Tuesday unveiled two special editions of its DS handheld gaming unit as the video-game maker seeks to keep up fans' enthusiasm for the popular device heading into the holidays.

Ten Southeast Asian leaders signed a historic charter on Tuesday that aims to create an economic bloc encompassing a half-billion people, but controversy over Myanmar threatened to spoil the ASEAN party.

Iran has agreed to hold a new round of talks soon with the United States on how to improve security in Iraq, Iran's foreign minister said on Tuesday.

President Vladimir Putin on Tuesday warned that Moscow would not remain indifferent to NATO's muscle-flexing and said Russia's nuclear forces would be ready for an adequate response to any aggressor.

Stock index futures trimmed gains and were well off their session highs on Tuesday after Freddie Mac, the No. 2 U.S. mortgage finance company, posted a wider third-quarter loss.

Goldman Sachs issued a gloomy report on the U.S. financial services sector, saying housing prices are likely to fall a lot further, write-downs will mount and some mortgage insurers and guarantors will be forced to raise capital just to survive.

U.S. buyout firm JC Flowers submitted an offer for Northern Rock, according to a person familiar with the situation, as shares in the stricken British bank tumbled on fears that any offers will be low. JC Flowers' proposal includes an offer to Northern Rock shareholders at a nominal value, the person told Reuters.

Groundbreaking for U.S. housing rebounded in October but permits for future building hit a 14-year low, indicating the grim market for home construction will likely continue to worsen. The Commerce Department said on Tuesday housing starts rose 3 percent to an annual pace of 1.229 million units in October.

The number of consumers expecting to cut holiday spending is at its highest level in recent years, with most citing high gasoline and home heating costs, according to an industry survey released on Monday. But fewer consumers are saying they are concerned about making monthly payments on mortgage and consumer loans, despite a widespread subprime mortgage crisis that has resulted in a credit crunch.

Retailer Lowe's Cos Inc said on Monday its third-quarter profit fell 10 percent and it cut its full-year forecast as the U.S. housing slump hurt sales, sending its shares down more than 5 percent. Results at home improvement retailers have weakened as slowing home sales, lower home prices and tightening of credit standards hurt consumer spending on big-ticket projects such as kitchen renovations.

Oil rose on Monday on the weakening U.S. dollar and concerns over whether OPEC will ramp up production next month to ease supply worries. U.S. crude traded 10 cents higher at $93.94 by 1:49 p.m. EST, after striking $95.15 earlier. London Brent crude rose 12 cents to $91.74.