IBT Staff Reporter

Germany's IKB said on Monday it would return to its small-company lending roots, and expects to lose nearly $1 billion this year after its U.S. subprime investments turned sour.

Shares in Britain's Barclays Plc, battered over the past two months, rose more than 3 percent on Monday after a weekend charm offensive helped further ease concerns over the bank's financial health.

Iraq's parliament must overcome major disagreements over control of the world's third biggest oil reserves before it can pass a vital oil law to lure billions in foreign investment, Iraqi officials said on Monday.

China said on Monday none of its massive foreign exchange stockpile was invested in the teetering U.S. subprime mortgage sector, while a top EU official predicted the crisis would not choke off economic recovery.

U.S. Gulf of Mexico oil and natural gas producers were monitoring powerful Hurricane Felix as it churned through the Caribbean Sea on Sunday, but none had reported reduced offshore production or evacuated workers to onshore locations.

Lawmakers returning from their summer break are expected to consider patent law changes that have pitted two of America's most invention-dependent industries against each other.

A proposal to test a radical change in the U.S. student loan industry by putting it on the auction block is set to pit Democratic lawmakers against the Bush administration and the banking industry.

European share indexes rose on Monday as remarks by executives of Barclays and Deutsche Bank eased fears of losses from the recent credit market turmoil, but utilities fell after news of a big French merger.

Japanese stocks slid on Monday as investors wary of credit woes sold some financial stocks following Friday's rises, while an unexpected drop in capital spending data put a lid on the overall market.

The dollar steadied versus the euro and yen on Monday at the start of a busy week for U.S. data which should shed light on the extent to which the credit markets turmoil is taking a toll on growth.

Oil climbed further above $74 on Monday, within sight of its record high, as OPEC kept a lid on output in the run-up to its September 11 ministerial meeting.

Asian stock markets took a breather on Monday with Tokyo's Nikkei slipping on fresh concerns about the economy, and the yen traded in a small range in a session likely to be dulled by the U.S. Labor Day holiday.

Hurricane warnings were posted for coastal Honduras as a potentially catastrophic Hurricane Felix, a top-ranked storm with 165 mile-per-hour (270 km per hour) winds, threatened Central America on Monday.

Gaz de France and Suez on Monday cleared the way to create the world's third-largest electricity and gas company after their boards approved the revised terms of a politically charged merger.

HSBC's purchase boost's its profile in Asia's third-largest banking market.

Many U.S. clothing retailers think the skirt may be the next dress.

Flips and scams blamed in Southern Californian housing decline

Scientists observe how water makes its way to newly forming planets.

Brewer Scottish & Newcastle Plc expects quick growth in India, China and Vietnam, with its ventures in these markets contributing a larger share of its overall revenue, a senior company official said.

Toyota Motor Corp said on Friday it expects its group's worldwide sales to expand to 10.4 million vehicles in 2009, up 18 percent from last year, as it grabs a bigger share in mature markets and taps growing demand in China and other emerging countries.

Japanese ADSL provider Acca Networks Co Ltd signed up NTT DoCoMo Inc to its WiMAX joint venture, tapping the mobile phone giant's resources to launch ultra high-speed wireless Internet access.

Sweden's IKEA said on Friday the contribution from Asia-Pacific to the group's total sales could triple to 10 percent in 5 to 6 years, creating a huge challenge for the world's largest furniture retailer.

Accredited Home Lenders Holding Co shares rose 43 percent on Friday after Lone Star Funds said it was prepared to buy the subprime mortgage lender at a lower price than it previously agreed to pay.

Honda Motor Co Ltd is on track for a 3 percent increase in U.S. sales in 2007, an executive said on Friday, but he also called on the Federal Reserve to cut interest rates to boost consumer confidence.

Stock markets ended one of the most volatile months in years on an impressive note, but this coming week still won't be any easier for investors as the employment report and housing turmoil remain high on radar screens.

U.S. stocks surged on Friday as President Bush and Federal Reserve Chairman Ben Bernanke reassured investors they would do what was needed to shelter the economy from market turmoil. Banks and brokers, which have borne the brunt of the recent credit crisis, rose in thin trading before a long holiday weekend.

Gold rose on Friday, aided by firm stocks and a strike at a gold mine, as speeches by U.S. President George W. Bush and Federal Reserve Chairman Ben Bernanke calmed financial markets ahead of the three-day U.S. Labor Day holiday weekend.

The Federal Reserve on Friday reassured investors it would take any steps needed to shelter the U.S. economy from a global credit squeeze, while President George W. Bush promised to help struggling homeowners refinance their mortgages. Chairman Ben Bernanke also said the central bank would not bail out investors who had made mistakes.

President George W. Bush's plan designed to limit the number of Americans who default on subprime mortgages might be a small positive for the commercial and investment banks exposed to them but does little to alleviate broader concerns about credit losses, analysts said.