IBT Staff Reporter

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Fed takes fresh steps to support fragile recovery

The Federal Reserve on Tuesday took a small but significant step to counter a weakening U.S. economic recovery, saying it would use cash from maturing mortgage bonds it holds to buy more government debt.

Market cuts losses after Fed but ends down

Stocks ended lower on Tuesday, but well off their lows, after the Federal Reserve said it would take new steps to counter a weak recovery. The Dow, which was down about 100 points before the Fed's announcement, briefly turned positive before buying waned on the Fed's more pessimistic assessment of the economy.

Risk of U.S. deflation is rising: Pimco

The United States faces a rising risk of deflation that could bolster prices of safe-haven U.S. government bonds, while hurting the prices of real estate and stocks, the world's biggest bond fund management company said on Tuesday.

Google under probe in S.Korea over data collection

South Korean police raided Google Inc's Seoul office on Tuesday, the latest in a series of legal challenges the company is facing because of data collected by its controversial fleet of Street View cars.

Boeing assessing 787 manufacturing issues

Boeing Co is assessing new issues related to manufacturing the long-delayed 787 Dreamliner, but the company still aims to make first delivery of the plane by the end of this year, the chief executive of Boeing Commercial Airplanes said on Tuesday.

BlackBerry gets reprieve, source says Saudi deal

BlackBerry maker Research In Motion has agreed to hand over coveted codes to users' phones to try to avert a ban on its Messenger service in Saudi Arabia, an industry source familiar with the talks told Reuters on Tuesday.

Wall St falls as investors brace for Fed

U.S. stocks declined on Tuesday due to investors' uncertainty whether the Federal Reserve will announce action to boost the U.S. economy as the recovery appear to be losing steam.

Productivity falls and Fed mulls stimulus

U.S. business productivity fell for the first time in 1-1/2 years in the second quarter and labor costs hardly rose, according to government data that underlined the halting pace of economic recovery.

Netflix and Epix strike programming deal

Netflix Inc reached an exclusive deal that allows members of the online video rental site to watch new films from the three studios that own the pay TV channel, Epix.

New RIM offer to Saudis is BlackBerry codes: source

BlackBerry maker Research In Motion, aiming to avert a ban on its Messenger service in Saudi Arabia, has agreed to hand over coveted codes to users' phones, an industry source familiar with the talks told Reuters on Tuesday.

Gold falls for second day ahead of Fed

Gold prices fell for a second day in Europe on Tuesday as the dollar strengthened, but prices did not stray far from $1,190 an ounce as traders awaited the outcome of a U.S. Federal Reserve monetary policy meeting.

Productivity falls, Fed mulls stimulus

U.S. business productivity fell for the first time in 1-1/2 years in the second quarter and labor costs hardly rose, according to government data that underlined the halting pace of economic recovery.

Wall Street dragged down by commodities

Stocks dropped sharply on Tuesday as commodity shares were hit by indications China's economic growth may be slowing and by mounting uncertainty over the Federal Reserve's assessment of the U.S. economy, due later in the session.

Wendy's/Arby's plans 180 restaurants in Russia

Wendy's/Arby's Group Inc plans to open 180 dual-branded Wendy's and Arby's restaurants in Russia over the next 10 years, becoming the latest U.S. fast food chain to look to that market for growth.

Productivity falls, labor costs up

U.S. non-farm productivity declined for the first time in 1-1/2 years during the second quarter this year and labor costs barely edged up, according to a Labor Department report on Tuesday that underlined a slowing pace of economic recovery.

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