UNITED STATES

Stocks fell on Monday after Citigroup's warning of billions more in loan losses compounded fears that the credit crunch could get worse. The news sparked a sell-off in shares of other financial companies as investors questioned which among them would be the next to reveal damage from the meltdown in the U.S. housing and subprime mortgage markets.

As global banks report larger and larger losses it's becoming apparent the the subprime mess will be around longer than expected.

U.S. service industries, representing about 80 percent of the nation’s economy, grew faster than expected in October, with increasing numbers of orders, according to a survey of purchasing and supply executives.

The Pakistani government said on Monday it would hold a national election by mid-January, as it came under pressure from the United States for imposing emergency rule and detaining lawyers and opposition politicians.

California faces a double-digit fall in housing prices over the next year and a half, a major builder, a lender and the state treasurer said on Monday in a discussion of how long the subprime mortgage crisis would drag on the Golden State.

Global hoteliers are riding a building boom in Asia, and using plush new hotels as giant, living advertisements to lure newly rich Chinese and Indians to their U.S. and European properties.

A Qatari fund has ditched plans for a 10.6 billion-pound ($22 billion) bid for British retailer J Sainsbury, blaming worsening credit markets and the cost of winning support from the firm's pension trustees.

Fear and mistrust gripped Wall Street on Monday after Citigroup's CEO quit in the wake of mounting credit losses and an influential money manager called the subprime mortgage market a $1 trillion problem.

Britain and France rushed to offer reassurance on Monday that their economies and banking systems would ride out global credit turmoil after Citigroup said it could write off $11 billion of subprime mortgage losses.

U.S. Secretary of State Condoleezza Rice said on Sunday the United States would review billions of dollars in financial aid to ally Pakistan after President Pervez Musharraf declared emergency rule.

President George W. Bush, facing Turkish threats of a military incursion into Iraq to root out Kurdish rebels, will assure Turkey's prime minister on Monday he is committed to helping to combat the militants.

Shares in Citigroup Inc rose 5 percent in their debut on the Tokyo Stock Exchange on Monday, a day after the U.S. bank's head resigned to take responsibility for spiraling losses on subprime-related investments.

Family groups renewed calls on Friday to clamp down on video game Manhunt 2 after hackers accessed scenes of bloody killings that were scaled back to let the game go on sale in the United States.

Gold drifted lower on Monday tracking weaker oil but held above $800 an ounce, with an ailing dollar and positive fundamentals seen helping the metal to touch a record high set in early 1980.

The yen rose across the board on Monday as global stock markets fell on worries of more credit-related troubles at U.S. banks, causing investors to reduce their exposure to risky assets and unwind carry trades.

Oil fell more than $2 on Monday after a warning by top bank Citigroup of more write-downs related to risky U.S. mortgages heightened concern over the economic health of the world's biggest fuel consumer.

Heart-failure patients given AstraZeneca Plc's Crestor and standard drugs are just as likely to have heart attacks and strokes or die of cardiovascular problems as those on standard therapy alone, researchers said on Monday.

PepsiCo announced a restructuring on Monday that will split the food and beverage company into three units -- one for food in the United States, one for U.S. drinks and one for food and drinks abroad.

Tesco, the world's third-largest retailer, has begun its long-awaited launch in the United States, opening its first store near Los Angeles.

Shares in stricken British mortgage bank Northern Rock tumbled over 6 percent on Monday amid concerns that potential bidders will steer clear as the turmoil in global financial markets deepens.

The United States and Britain heaped pressure on Pakistan's President Pervez Musharraf on Monday, urging him to hold elections on time, as police detained hundreds of lawyers angry at his imposition of emergency rule.