The US Federal Reserve has announced an $85 billion rescue package for AIG, the country's largest insurance company, to save it from bankruptcy and avoid plunging the financial markets into deeper crisis.  ┬á The rescue follows the collapse of Lehman Brothers, the fourth-largest investment bank in the US, in which the Fed did not intervene, causing share prices to plummet all over the world. ┬á┬á The Fed's move is viewed by some as the most radical intervention in private business in its history, and has helped fuel a tentative rally on global stock markets.

Hewlett-Packard (HP), the world's largest computer company, has announced plans to cut 24,600 jobs, 7.5 percent of its workforce, to streamline its business.   ┬á When HP announced in May that it would acquire technology-services firm Electronic Data Systems Corp. (EDS), layoffs were expected, but not on this scale. ┬á┬á The company plans to shed 24,600 jobs over the next three years, as it combines operations with EDS, whose employees are expected to bear the brunt of the cuts.

Alaska Airlines has announced a reduction in flight departures and up to 1000 job cuts in response to record oil prices and the slowing economy.  ┬á Starting in November, the Seattle-based airline will reduce its capacity by about 8 percent, eliminating some flights to popular destinations in California and Mexico and canceling low-demand flights.┬á┬á The airline lost $50 million in the first half of the year and said it needed to take "decisive action." The job cuts, representing about 10 percent of the workforce, will also begin in November and affect pilots, cabin cre

With the governor of Alaska installed as John McCainÔÇÖs running mate, the battle over oil and gas exploration in Arctic waters could become a prominent issue in the upcoming presidential election.┬á  With the Arctic ice-cap melting more rapidly than usual for a second year running, and gas prices breaking through the $4 a gallon barrier, pressure is growing to exploit the reserves under the Arctic ocean.

The US Department of Defense has cancelled a controversial $35 billion bid competition for a fleet of new air refueling tankers because the current administration no longer has enough time to complete it in a ÔÇ£fair and objective" way.  ┬á The contract was initially awarded in February to Northrop Grumman and its European partner EADS, parent company of Airbus, but a successful appeal by Boeing to the Government Accountability Office led to the Pentagon deciding to launch a fresh contest.┬á┬á ┬á The GAO investigation found ÔÇ£significant errorsÔÇØ in the original bid pr

Coca ColaÔÇÖs $2.5 billion bid for Chinese juice company Huiyuan will be the first case to be scrutinized by Chinese competition authorities under the country's new antitrust laws.   ┬á Coca Cola is keen to increase its presence in ChinaÔÇÖs fast growing drinks market, but the potential sale of China Huiyuan Juice Group Ltd. to an overseas company has stirred up nationalist opposition. ┬á┬á Coke agreed last week to pay HK$12.20 per share for Huiyuan, in a deal which values the Beijing-based juice producer at around HK$17.9 billion ($2.3 billion).

One of BoeingÔÇÖs key suppliers, Spirit AeroSystems, has already reacted to the strike action by 27,000 assembly workers by announcing a reduction in working hours.  ┬á Spirit makes wing components, fuselage sections, engine pylons and nose sections for Boeing commercial aircraft, employing over 2000 people in Tulsa and McAlester, Oklahoma, and 10,900 in Wichita, Kansas.

Thousands of workers at Boeing have commenced strike action after a 48-hour moratorium failed to produce agreement on a three year pay deal between the aircraft manufacturer and the International Association of Machinists and Aerospace Workers.  ┬á Boeing offered its 27,000 assembly workers an 11 percent pay deal over three years, increasing average pay and benefits by $34,000, but its ÔÇ£best and finalÔÇØ offer was overwhelmingly rejected by 87 percent of union members Wednesday.

There was mixed news on the economic outlook this week, with higher than expected growth in the US service sector in August, but also an unexpected rise in new applications for unemployment benefits.┬á  Figures released by the Institute for Supply Management showed its non-manufacturing index at 50.6 in August, up from 49.5 in July. A figure above 50 signifies growth. ┬á┬á But the Labor Department said new applications for unemployment insurance rose by 15,000 from the previous week, against expectations of a fourth week of falls.

Boeing has secured a 48-hour moratorium to try to fend off a damaging strike by 27,000 assembly workers in Washington, Oregon and Kansas.  ┬á The employees, members of the International Association of Machinists and Aerospace Workers, voted Wednesday to reject BoeingÔÇÖs latest pay and benefits package. ┬á┬á Boeing offered its workers an 11 percent pay deal over three years, increasing average pay and benefits by $34,000, but the offer was overwhelmingly rejected.