IBT Staff Reporter

Crude futures reached $122 a barrel inTuesday's trading as supply disruptions, overseas growing demand outlook and a falling dollar sent the prices to new all time records.

Fannie Mae, the largest U.S. mortgage finance company, revealed additional troubles from the U.S. housing downturn as it lost $2.2 billion in the first three months of the year. The Washington-based firm also said it would cut its dividend to investors and raise $6 billion by selling stock.

Swiss banking giant UBS announced Tuesday it would cut its workforce by 5,500 over the next year and sell a $15 billion chunk of its risky mortgage assets to BlackRock Inc., after reporting first-quarter losses due to the U.S. subprime crisis.

Dollar eased against the euro yesterday despite an unexpectedly strong data from the US Service sector.

U.S. Airways Group Inc. reported on Monday April traffic slumped 2 percent from 5.25 billion revenue passenger miles last year to 5.14 billion.

Cardinal Health Inc. reported on Monday the recall of 60,000 bottles of mouthwash contaminated with Burkholderia cepacia bacteria.

Sterling witnessed a sluggish movement yesterday in the absence of any major data.

The dollar fell on Tuesday after Federal Reserve Chairman Bern Bernanke said home prices may continue to fall as foreclosures increase.

A federal judge presiding over a corporate spying suit against News Corp said the company could lose the case worth hundreds of millions of dollars if Chairman and Chief Executive Rupert Murdoch fails to testify about what he knew, according to media reports released Monday.

Chipmakers Intel, Samsung and TSMC will jointly develop larger silicon wafers to boost efficiency in semiconductor manufacturing.

Wal-Mart Stores Inc, the world's largest retailer, is expanding its discounted generic drug program, announcing today that now offers a 90-day supply of medicines for $10.

Wal-Mart rolled out a 90-day special offer to American consumers on Monday that sells prescription drugs for $10. The promo includes increasing additional medications for women and unveiling $4 over-the-counter pharmaceuticals.

Target Corp., the second-largest discount store in the U.S, has agreed to sell a 47 percent stake in its credit-car loans to J.P. Morgan Chase & Co. for $3.6 billion to raise cash for stock buybacks in a deal that was urged by activist shareholder William Ackman.

Both China's Shanghai and Shenzhen stock markets opened higher on Monday morning, boosted by Fed's cut of interest rates and China Securities Regulatory Commission (CSRC) Chairman Shang Fulin's requirement that institutions to maintain stability.

Microsoft's failure to acquire Yahoo increased pressure on its executive to find better ways of catching up with Google Inc., which is currently leading the Internet advertisement business.

Merck & Co. said Monday it will cut 1,200 U.S. sales jobs in an attempt to save expenses amid the recent rejection of its Cordaptive cholesterol drug last week.

Sprint Nextel Corp. is considering spinning off or selling its Nextel unit, according to a report.

Ford Motor Co. and the Canadian Auto Workers ratified a three-year labor contract that their union plans to use as a pattern for negotiations with General Motors Corp. and Chrysler LLC.

Movie fans rewarded 'Iron Man' with box office success over the weekend and the film's producer Marvel Entertainment returned the favor, announcing a sequel to the film set for release in 2010.

Vietnam plans to buy more electricity from China as local energy supplies vie to keep up with the burgeoning economy.

Crude oil futures rose on Monday to $120 a barrel after another attack in Nigeria rose concerns on tight supplies from the country while the dollar fell and U.S. economic data showed demand may not be as weak as expected.

Gold futures rose on Monday, rebounding from posting losses in three consecutive weeks, as the dollar dropped against the euro and crude oil hit a new record.

U.S. stocks fell as Yahoo dropped the most in almost two years after Microsoft Corp. abandoned its $50 billion bid for the company and Countrywide Financial Corp. tumbled on concern its suitor will abandon its pending takeover.

Corn and Soybeans declined on Monday as farmers increased planting of the two crops boosted by average rainfall that brought favorable planting conditions.

Shares of Yahoo fell as much as 20 percent on Monday but recovered slightly after Microsoft withdrew its buyout bid for the Internet portal over the weekend.

Amzazon.com sued the state of New York, challenging it for the new statute that requires Internet retailers based outside New York to collect New York sales taxes.

UAL's United Airlines is contemplating asking its banks to revise the terms of its credit facility in a bid to gain crucial financial flexibility to withstand the airline industry's sharp slump, according to media reports released Monday.

China 's stock market watchdog said on Sunday it had allowed local fund management companies to set up branches in Hong Kong, which will help national fund firms become more familiar with international financial rules.

Dollar strengthened against the euro on Friday after government report showed the U.S. economy shed just 20 000 jobs in April fewer than economists had expected.