Production at US factories last month fell by 2.8 percent, the largest decline since December 1974, according to a report released today by the Federal Reserve. The decrease in production at factories, mines and utilities far exceeded analystsÔÇÖ forecasts and followed a 1 percent decrease in August, the Fed said. The Fed said that production fell 6 percent for the third quarter, the largest drop since 1991, almost doubling the 3.1 percent drop for the second quarter.

Sales at US retailers dropped in September by the most in three years due to increased job losses, plunging home prices, and the deepening credit crisis rattling consumers. ┬á Purchases fell 1.2 percent, more than forecast, followed by a .4 percent decline the prior month. ┬á Consumer confidence is down, largely due to last weekÔÇÖs big decline in stock prices, the largest in at least seven decades. Consumers are cutting back on non-essentials like new cars and vacations, leading to an even deeper economic slump.

Daimler AG, the worldÔÇÖs largest maker of heavy vehicles, will close its Sterling Trucks division in North America, cutting 3,500 jobs as it aims to halt production and move manufacturing to Mexico. ┬á The Sterling brand, a maker of medium-sized models which accounts for 15 percent of DaimlerÔÇÖs US truck output, ÔÇ£never met expectationsÔÇØ after its purchase in 1998 says Heinz Gottswick, a spokesman for the company.

After a weekend of meetings in Washington and Paris, finance ministers from leading industrialized nations have pledged to work together to tackle the financial crisis.   ┬á The G7 nations (the US, Japan, Britain, Germany, France, Italy and Canada) issued a five-point plan of "decisive action" to unfreeze credit markets, after their first meeting in Washington Saturday. ┬á┬á The plan is intended to protect major banks and financial institutions from failure and ensure they can raise capital from public and private sources.

General Electric said Friday that its profit declined for the third straight quarter due to lower earnings at its financing arm, GE Capital, during the biggest financial crisis since the Great Depression.  GE, a 106-year-old economic leader whose products range from lightbulbs to power-plant turbines, generated higher profit from a strong demand for its electricity-generating turbines and jet engines, and its energy, technology, and NBC Universal businesses.

Symantec Corp.

 Symantec Corp.

Wal-Mart Stores, the worldÔÇÖs largest retailer, and Costco Wholesale said September sales rose as cash-strapped consumers worried by the Wall Street crisis looked for discounts on food and toiletries. ┬á Wal-MartÔÇÖs sales rose 2.4 percent for the month at stores open at least a year while Costco reported a 7 percent monthly sales increase.

The Federal Reserve announced it is going to buy massive amounts of commercial paper in an effort to break through a credit crunch that has endangered the economy. ┬á In alliance with the Treasury Department, the Fed is planning to buy ÔÇ£commercial paper,ÔÇØ a way of borrowing money for short periods typically ranging from a day to less than a week, and a mechanism that many companies use to finance their day-to-day operations, such as purchasing supplies, finance payrolls, and other cash needs.

After Wells Fargo announced last week that it was set to buy Wachovia for $15.1 billion, Citigroup has now objected, demanding that it be called off, saying the new deal has breached its exclusive acquisition rights. ┬á The Wells Fargo deal had trumped an earlier government-backed rescue deal that Citigroup had proposed, in which it would buy WachoviaÔÇÖs banking operations for $2.2 billion. ┬á Wells offered to buy all of Wachovia for more money without government aid, to which Wachovia had decided not to honor its prior agreement with Citigroup.