• Auditors fault Treasury oversight of bailout funds 12/2/2008, 9:04 p.m. EST
WASHINGTON (AP) — The government must toughen its monitoring of the $700 billion financial bailout to ensure that banking institutions limit their top executives' pay and comply with other restrictions, federal auditors said Tuesday in the first comprehensive review of the rescue package.

• Security tops India Inc.'s concerns after attacks 12/2/2008, 8:24 p.m. EST
MUMBAI, India (AP) — Mumbai is largely back open for business, but if the government doesn't improve the nation's security India Inc. may sink, corporate leaders say.

• US automakers ground jets for trip to Washington 12/2/2008, 7:36 p.m. EST
DETROIT (AP) — If the Detroit Three automakers have learned anything since their last trip to Washington, it's that the old way of doing business just won't fly.

• Beazer Homes 4Q loss balloons as revenue plunges 12/2/2008, 7:34 p.m. EST
(AP) — Homebuilder Beazer Homes USA Inc. gave Wall Street a double-shot of discouraging news Tuesday: Its fiscal fourth-quarter loss more than tripled from a year ago and it expects to lose money throughout 2009.

• Big Three survival bailout requests rise to $34B 12/2/2008, 7:32 p.m. EST
WASHINGTON (AP) — Humbled and fighting for survival, Detroit's once-mighty automakers appealed to Congress with a retooled case for a bailout as large as $34 billion Tuesday, pledging to slash workers, car lines and executive pay in return for a federal lifeline. GM and Chrysler said they needed an immediate cash infusion to last 'til New Year's, and warned they could drag the entire industry down if they fail.

• W.R. Grace to pay up to $140M in asbestos case 12/2/2008, 7:31 p.m. EST
NEW YORK (AP) — W.R. Grace & Co. has agreed to pay up to $140 million to settle a class-action lawsuit stemming from its use of an attic-insulating product that contained asbestos.

• Oil and gas prices slip to new 3-year lows 12/2/2008, 7:12 p.m. EST
COLUMBUS, Ohio (AP) — Retail gasoline fell to a new three-year low Tuesday and in an unprecedented decline, crude oil costs $100 less per barrel than it did four months ago with a U.S. recession eating away at energy demand.

• OmniVision offers 3Q guidance well below Street 12/2/2008, 7:04 p.m. EST
SANTA CLARA, Calif. (AP) — Image sensor maker OmniVision Technologies Inc. on Tuesday said it expects to post a loss in its fiscal third quarter, offering a forecast that fell well below Wall Street expectations.

• OmniVision swings to 2Q loss on impairment charge 12/2/2008, 7:03 p.m. EST
SANTA CLARA, Calif. (AP) — Image sensor maker OmniVision Technologies Inc. on Tuesday posted a loss for its fiscal second quarter, reversing a year-ago profit, after booking a big charge related to its stock decline.

• Sears posts larger 3Q loss on weak US, Kmart sales 12/2/2008, 6:52 p.m. EST
CHICAGO (AP) — Sears Holdings Corp. posted its biggest quarterly loss since financier Edward Lampert combined Sears and Kmart into one retail company, due mainly to hefty charges related to store closures and disappointing U.S. sales.

• Beazer Homes 4Q loss balloons as revenue plunges 12/2/2008, 6:22 p.m. EST
(AP) — Homebuilder Beazer Homes USA Inc. gave Wall Street a double-shot of discouraging news Tuesday: Its fiscal fourth-quarter loss more than tripled from a year ago and it expects to lose money throughout 2009.

• Ford tells Congress it may be able to go it alone 12/2/2008, 6:11 p.m. EST
WASHINGTON (AP) — Humbled and fighting for survival, Detroit's once-mighty automakers appealed to Congress with a retooled case for a huge bailout Tuesday, pledging to slash workers, car lines and executive pay in return for a federal lifeline. GM said it wouldn't last till New Year's without an immediate $4 billion and could drag the entire industry down if it fails.

• Latin America stocks rally on US rebound 12/2/2008, 6:03 p.m. EST
SAO PAULO, Brazil (AP) — Latin American stocks closed mostly higher Tuesday as bargain hunters helped drive a slight rally following steep losses the day before on concern the U.S. recession will be longer than expected.

• Oil and gas prices slip to new 3-year lows 12/2/2008, 5:56 p.m. EST
COLUMBUS, Ohio (AP) — Retail gasoline fell to a new three-year low Tuesday and in an unprecedented decline, crude oil costs $100 less per barrel than it did four months ago with a U.S. recession eating away at energy demand.

• November sales may fall despite Friday's buying 12/2/2008, 5:55 p.m. EST
NEW YORK (AP) — Shopping binges on the day after Thanksgiving were likely not enough to save a dismal November for retailers, leaving them with what's expected to be a second straight monthly sales drop and fueling concerns about how much consumer spending can fall.

• Treasurys extend gains amid investor worries 12/2/2008, 5:51 p.m. EST
NEW YORK (AP) — Yields on U.S. government debt touched fresh lows again Tuesday as investors, worried about the economy and the ongoing volatility in stocks, again sought out the safest investments.

• Schumer says housing `vultures' hurt NYC 12/2/2008, 5:48 p.m. EST
NEW YORK (AP) — At the height of the real estate boom, even drab, rent-controlled apartment houses in the Bronx and Harlem were suddenly fetching Park Avenue prices.

• Wall Street rebounds sharply after big drop 12/2/2008, 5:47 p.m. EST
NEW YORK (AP) — In a session that showed more indecision than conviction, the stock market rebounded Tuesday from the previous day's massive decline. The Dow Jones industrials rose 270 points after fluctuating sharply, and all the major indexes rose more than 3 percent.

• FDIC head: gov't rescue plan needs 'exit strategy' 12/2/2008, 5:46 p.m. EST
WASHINGTON (AP) — The head of the FDIC said Tuesday the government needs to devise an "exit strategy" for its massive financial rescue plan to avoid artificially propping up banks and other institutions over the long term.

• Retailers expect to report dismal November sales 12/2/2008, 5:42 p.m. EST
(AP) — Retailers got some relief on the day after Thanksgiving, but the spending likely wasn't enough to salvage a drab November from showing a drop in sales. The rampant discounting needed to attract financially strapped shoppers will probably hurt fourth-quarter earnings as well.

• World markets close mostly higher on US rally 12/2/2008, 5:41 p.m. EST
LONDON (AP) — A rebound on Wall Street provided a lift Tuesday to most world stock markets outside of Asia, where shares slumped overnight.

• Chrysler to seek $7 billion in government loans 12/2/2008, 5:37 p.m. EST
AUBURN HILLS, Mich. (AP) — Chrysler says that without a federal loan, its cash could fall below the minimum amount required to run the company in the first quarter of next year.

• GE, Ford, Beazer, Sears, Staples are big movers 12/2/2008, 5:35 p.m. EST
NEW YORK (AP) — Stocks that moved substantially or traded heavily Tuesday on the New York Stock Exchange and the Nasdaq Stock Market:

• Yahoo shares climb on hopes for $30B takeover bid 12/2/2008, 5:32 p.m. EST
SAN FRANCISCO (AP) — Yahoo Inc.'s stock rallied Tuesday on a report that AOL's former chief executive believes he can raise enough money in a worsening recession to buy the struggling Internet company for as much as $30 billion.

• Detroit CEOs save more than $15,000 by driving 12/2/2008, 5:23 p.m. EST
(AP) — The CEOs of Detroit's three automakers — Ford Motor Co.'s Alan Mulally, General Motors Corp.'s Rick Wagoner and Chrysler LLC's Robert Nardelli — are saving their companies more than $15,000 by driving to Washington, D.C., rather than flying by corporate jet:

• Gold prices rise, other commodities mostly lower 12/2/2008, 5:23 p.m. EST
NEW YORK (AP) — Gold prices rose modestly Tuesday, buoyed by an advance on Wall Street and a weakening dollar.

• GM says it needs $12 billion loans by late March 12/2/2008, 5:22 p.m. EST
WASHINGTON (AP) — General Motors Corp. said Tuesday it needs $12 billion in government loans to keep operating, telling Congress in a bluntly worded report that its collapse could have "severe, long-term consequences to the U.S. economy."

• November US auto sales drop to 26-year low 12/2/2008, 5:15 p.m. EST
NEW YORK (AP) — U.S. light vehicle sales at General Motors and Chrysler plunged more than 40 percent in November, while Ford's sales dropped 31 percent, battered by an economic storm that has sent consumer demand for new vehicles to the lowest level in more than 26 years.

• Paulson urges Chinese to continue currency reforms 12/2/2008, 5:13 p.m. EST
WASHINGTON (AP) — Treasury Secretary Henry Paulson, preparing for his final round of economic talks with China, said Tuesday that Beijing must keep letting its currency rise in value against the dollar to help ease trade tensions with the United States.

• British Airways in merger talks with Qantas 12/2/2008, 5:06 p.m. EST
LONDON (AP) — British Airways PLC and Australia's Qantas Airways Ltd. said Tuesday they are holding talks about a potential merger, sparking hopes of consolidation in the hard-hit aviation industry.

• Chrysler CEO will drive to Washington for hearings 12/2/2008, 4:36 p.m. EST
AUBURN HILLS, Mich. (AP) — Chrysler says CEO Robert Nardelli will join his Detroit counterparts in driving to Washington, D.C., this week to seek federal loans.

• GE expects to hit low end of 4Q guidance 12/2/2008, 4:34 p.m. EST
WASHINGTON (AP) — General Electric Co. said Tuesday it expects fourth-quarter earnings to be near the low end of its guidance and will take a charge of up to $1.4 billion as it starts to shrink its struggling GE Capital finance arm next year because of the ongoing credit crisis.

• Staples 3Q profit drops 43 percent on charges 12/2/2008, 4:25 p.m. EST
CHICAGO (AP) — Staples Inc., the world's largest office supplier, said Tuesday that its third-quarter profit sank 43 percent because of hefty charges from restructuring and the acquisition of European rival Corporate Express.

• US cruise ship outruns Somali pirates' guns 12/2/2008, 4:14 p.m. EST
NAIROBI, Kenya (AP) — The luxury American cruise ship steaming across the Gulf of Aden with hundreds of well-heeled tourists just might have been too much for Somali pirates to resist.

• Agriculture futures trade mixed on the CBOT 12/2/2008, 4:06 p.m. EST
CHICAGO (AP) —

• Auditors fault Treasury oversight of bailout funds 12/2/2008, 3:53 p.m. EST
WASHINGTON (AP) — A government audit says the Treasury Department needs tougher controls to oversee the $700 billion financial bailout package.

• Hybrid solar plant to reduce need for fossil fuel 12/2/2008, 3:39 p.m. EST
INDIANTOWN, Fla. (AP) — Proclaiming green the new gold, Florida Power & Light executives on Tuesday marked the groundbreaking of the first of three new solar power projects that will eventually make the state No. 2 in the nation for energy from the sun.

• Wyndham resort lays off 200 workers in Puerto Rico 12/2/2008, 3:04 p.m. EST
SAN JUAN, Puerto Rico (AP) — About 200 workers have been laid off from a luxury resort in Puerto Rico, officials said Tuesday, adding to the struggles of a Caribbean hotel industry hit by falling revenues and bookings due to the global financial crisis.

• GM, Ford CEOs taking company cars to Washington 12/2/2008, 2:45 p.m. EST
DETROIT (AP) — Eager to avoid another scathing lecture about corporate excess from members of Congress, the CEOs of America's two biggest automakers will travel to Washington this week in hybrid vehicles made by their companies.

• Credit fears creep even into cash-rich oil sector 12/2/2008, 2:42 p.m. EST
HOUSTON (AP) — Access to credit and the capital needed for exploration and production is the biggest obstacle facing oil companies in 2009, even more than lower crude and natural gas prices, a new survey shows.

• Mortgage fraud incidents up 45 pct in 2Q 12/2/2008, 2:30 p.m. EST
MIAMI (AP) — Reported incidents of mortgage fraud grew by 45 percent in the second quarter compared to the year-ago period, as borrowers misstated their financial information to maneuver around tighter lending standards, industry data released Tuesday showed.

• Cox Newspapers to close Washington bureau 12/2/2008, 2:23 p.m. EST
WASHINGTON (AP) — Cox Newspapers said Tuesday it will shut its Washington, D.C., office in April, citing a need to limit costs in a tightening economy.

• W.R. Grace to pay up to $140M in asbestos case 12/2/2008, 2:19 p.m. EST
NEW YORK (AP) — W.R. Grace & Co. has agreed to pay up to $140 million to settle a class-action lawsuit stemming from its use of an attic-insulating product that contained asbestos.

• Puma to take stake in Dobotex 12/2/2008, 2:14 p.m. EST
FRANKFURT, Germany (AP) — Athletic apparel maker Puma AG said Tuesday it will take a majority stake in Dutch company Dobotex starting next year.

• Brazilian financier convicted of corruption 12/2/2008, 2:11 p.m. EST
SAO PAULO, Brazil (AP) — A judge has convicted a prominent Brazilian financier of corruption and sentenced him to 10 years in prison.

• Brazil industrial production falls in October 12/2/2008, 2:05 p.m. EST
SAO PAULO, Brazil (AP) — Brazilian industrial production fell in October as the global financial meltdown sent shock waves through Latin America's largest economy, the government said Tuesday.

• Unions say SAfrican mines to shed 10,000 jobs 12/2/2008, 1:31 p.m. EST
JOHANNESBURG, South Africa (AP) — About 10,000 workers are expected to lose their jobs as South Africa's mining industry copes with the global financial crisis, unions said Tuesday.

• Ford says CEO will work for $1 to get gov't loans 12/2/2008, 1:27 p.m. EST
DETROIT (AP) — Ford Motor Co. will tell Congress that it plans to return to a pretax profit or break even in 2011 when the Detroit Three automakers' CEOs appear before lawmakers this week to request $25 billion in government loans. Ford CEO Alan Mulally said he'll work for $1 per year if the company has to take any government loan money.

• FTSE-100 up 57.37 at 4,122.86 12/2/2008, 1:14 p.m. EST
LONDON (AP) — Share prices on the London Stock Exchange rose Tuesday.

• Dollar mostly higher, gold up in afternoon trading 12/2/2008, 1:12 p.m. EST
LONDON (AP) — The U.S. dollar was mostly higher against other major currencies in European trading Tuesday afternoon. Gold rose.