IBT Staff Reporter

The odds of a recession in the United States is between a third and half due to the credit crisis sparked by problems in the U.S. subprime mortgage sector, former Federal Reserve chief Alan Greenspan said on Wednesday.

Crude oil inventories rose unexpectedly last week in the United States while distillates posted a surprising draw, according to weekly government data issued on Wednesday.

Northern Rock's advisers are in talks with U.S. buyout firm JC Flowers over a rescue bid for the stricken UK mortgage bank, as U.S. firm Cerberus also considers a move, sources familiar with the matter said.

U.S. service sector growth fell more than expected in September, according to a report released on Wednesday that painted a mixed picture of the economy, with prices rising but employment improving.

Japanese electronics giant Sony and Germany's Bertelsmann won competition clearance from the European Commission on Wednesday for their recorded music joint venture, in a move which angered independent music labels.

U.S. mortgage applications fell for a second straight week, largely reflecting a drop in demand for home refinancing loans, an industry group said on Wednesday.

Cool jazz piano playing in the background, a pink penguin named JellyJuju orders a cheese pizza and a lemonade. Another penguin, wearing a chef's hat, waddles to the table, tossing the pie in the air and catching it.

Gold bounced and gained as much as $5 on Wednesday after falling to a one-week low the previous day, suggesting that fundamentals still favored the metal used as an alternative investment to bonds and currencies.

Oil climbed further above $80 a barrel on Wednesday after three days of losses as investors expected weekly U.S. data to show crude stocks declining and raising the prospects for a winter supply crunch.

Verizon Wireless unveiled three new cell phones on Wednesday for the holiday season, including a high-end handset named Voyager that will compete with Apple Inc's iPhone.

The audacious rise in the Dow industrials to a record will do little to prevent the millions of new "For Sale" signs likely to dot U.S. lawns soon.

Even the most luxurious, expensive homes are feeling the impact of the credit crunch -- $3 million discounts.

Germany's biggest bank expects a $2 billion 3q profit despite big hits from global credit market problems

More arrested after the departure of a UN diplomat who came to try to end a ruthless crackdown on protestors.

U.S. private employers likely added 58,000 jobs in September, in line with expectations, a report by a private employment service said on Wednesday. The report's makers said it was the third consecutive weak reading and confirms the recent deceleration of employment.

Microsoft Corp introduced on Tuesday three new models of its Zune digital media player that wirelessly and automatically update their music, photos and videos when placed near a user's computer.

Global stocks hit a fresh peak for a third straight session on Wednesday as worries about a credit squeeze continued to recede, while the dollar pared recent gains as investors awaited upcoming major U.S. economic data. Caution ahead of U.S. non-manufacturing numbers and retail sales in Europe due later in the day were seen keeping a lid on European markets.

U.S. Treasuries made small gains on Tuesday after an industry report said the number of pending home sales fell more than expected, causing concern that the housing crisis could deepen even more.

The dollar's two-day rally against the euro ended ahead of a key U.S. service sector report due later Wednesday.

The number of pending sales of previously owned homes in the U.S. fell to its lowest level since an industry report began tracking the data since 2001, sign that the housing downturn may not be have reached its lowest point yet.

Today in the UK, on the first day of the Conservative Party Conference in the seaside town of Blackpool, the Shadow chancellor George Osborne will be laying out some of his tax policies to his party and potential voters.

Japan's Nikkei stock average is expected to move in a narrow range on Wednesday, with profit-taking likely to prevent the index from going further beyond 17,000.

Gold fell the most since August after the dollar rebounded against the Euro on Tuesday.

General Motors Corp gained ground against rivals in September with a 4 percent U.S. sales increase while Ford Motor Co sales plunged 18 percent and Toyota Motor Corp sales were off 1 percent for a third monthly decline. Overall, sales steadied in September, bucking Wall Street expectations for a decline.

Oil prices fell for the third day in a row after the dollar rebounded reducing the appeal of the commodities.

The number of American's signing contracts to buy homes dropped to the lowest level ever in August new data shows.

Stocks rose on Tuesday as the broader market bet that the worst of the credit squeeze was behind it, and the of takeovers increased.

Blue-chip stocks fell on Tuesday as investors booked profits following a record reached in the previous session, but in the broader market, bank stocks and home builders gained as investors bet the worst of the credit squeeze may be over.

The upstart airline has halved ticket prices on some routes and could impact rivals' profits.