IBT Staff Reporter

The Beijing municipal government will fully support a bid by Beijing Automotive Industry Holding Corp (BAIC) for Ford Motor's (F.N) Volvo car unit if the Chinese automaker fails in its current quest for General Motors' Opel, sources said on Wednesday.

General Motors [GM.UL] on Wednesday posted a 22 percent global sales drop from a year earlier for the first six months of 2009 amid the economic slowdown and the automaker's slide into bankruptcy.

Carmakers can continue to set up networks of selective and exclusive dealerships for another three years in line with antitrust exemptions for the sector, European Union antitrust regulators said on Wednesday.

Signs of life in the struggling auto sector helped boost Canadian retail sales by 1.2 percent in May from April, outstripping expectations and more than offsetting April's 0.6 percent decline.

Canada's Magna (MGa.TO) is still Germany's preferred bidder for carmaker Opel, a government spokesman said on Wednesday ahead of a meeting with General Motors representatives to discuss the takeover offers.

Plastic Logic plans to use AT&T Inc's 3G network as the wireless connection for the new electronic reader it plans to launch next year, the closely-held company said on Wednesday.

Italian Prime Minister Silvio Berlusconi said he's “no saint” referring to a sex scandal he finds himself entangled.

Morgan Stanley on Wednesday reported a third straight quarterly loss, falling further behind chief rival Goldman Sachs as fixed income and asset management results disappointed.

Cambridge, Massachusetts police have dropped charges of disorderly conduct against Harvard University professor Henry Louis Gates, calling the incident of his arrest on July 16 “regrettable and unfortunate.”

Wells Fargo said on Wednesday the loan losses increased in the second quarter as borrowers battled to keep their payments up to date. The bank dropped as much as 7.6 percent in New York trading.

Three of the world's biggest drugmakers posted better-than-expected quarterly earnings on Wednesday and gave bullish forecasts for the rest of the year, demonstrating the industry's resilience in the weak economy.

The longest eclipse of this century was passing through the world's two most populous nations, India and China, on Wednesday.

The U.S. Senate will vote today on an measure that would the nation's 5 million people with concealed weapons permits in one state use their weapon in another state, a move which critics say would water down gun laws in stricter states.

Stocks seesawed on Wednesday as disappointing quarterly results from top banks sparked caution over the health of financials, though sentiment rose after a robust earnings report from Apple Inc .

The Australian Dollar opens largely unchanged on Wednesday at 0.8160 and is pausing for breath after six days of steady gains versus its US counterpart. During the domestic session on Tuesday, the Aussie traded as high as 0.8178 after the minutes of the RBA's July 7 board meeting painted a picture of an economy in recovery mode.

U.S. Secretary of State Hillary Clinton sketched out on Wednesday how the United States might cope with a nuclear Iran -- by arming its allies in the Gulf and extending a defence umbrella over the region.

Surrounded by corn fields and cattle, the people of southeast Kansas seem far from the Washington debate on reforming U.S. healthcare but many care deeply about the issue and hope that change can come.

Some of the ideas proposed for U.S. healthcare reform could cost patients thousands of dollars a year out of their own pockets, and premiums could end up being too high, according to two reports.

U.S. President Barack Obama will plead his case for a broad healthcare overhaul in a prime-time news conference on Wednesday, with doubts growing about the plan even among his fellow Democrats and polls showing slipping public support.

Warnings that the world economy still faces a rocky road tempered market enthusiasms on Wednesday, with Japan indicating it might need to do more to ease credit pressures and Britain biding its time.

A New York judge reinstated part of former TV news anchor Dan Rather's $70 million lawsuit against CBS on Tuesday, although the ruling could be legally meaningless if an appeals court dismisses the entire case.

All derivatives dealers should meet capital, margin, conduct and record-keeping rules, Commodities Futures Trading Commission Chairman Gary Gensler said in a prepared text on Wednesday.

Apple Inc said it was awaiting results from an investigation into the death of a worker in China, after media reports said the man killed himself on learning he was suspected of leaking company secrets.

U.S. Secretary of State Hillary Clinton signed a friendship treaty with Southeast Asia on Wednesday, underlining Washington's renewed focus on a region that has increasingly come under China's influence.

The main market at the center of China's riot-torn Urumqi city reopened Wednesday, state media reported, while an exile group said Uighur students had called for the release of those still detained after this month's riots.

Rising protectionism is a threat to a global economic recovery, the Asia-Pacific Economic Cooperation (APEC) group said on Wednesday, vowing to stamp out such policies.

Honduras' de facto government said on Wednesday that talks aimed at ending a deep political crisis following last month's coup have been delayed and it is waiting for new proposals from the mediator.

Several outcomes remained possible to a power struggle pitting Porsche SE against Volkswagen a day ahead of an expected showdown between the carmakers' rival factions, people familiar with the matter said.

Prime Minister Benjamin Netanyahu rejected on Wednesday any notion he would order Israel's barrier in the West Bank to be torn down in response to the absence of Palestinian attacks from the occupied territory.