IBT Staff Reporter

The European Union, United States and Russia urged Serbs and Albanians on Wednesday to avert any slide to violence following the failure of their talks on the future of the breakaway province of Kosovo. Kosovo's 90-percent Albanian majority is preparing to declare independence within months, and is counting on recognition from Washington and the major EU capitals -- a move Serbia says will unleash chaos in the fragile Balkans.

U.S. President George W. Bush has set himself the Herculean task of shepherding an Israeli-Palestinian peace deal by the end of next year, but doubts remain about his commitment. As Bush proudly beamed behind them, Israeli Prime Minister Ehud Olmert and Palestinian President Mahmoud Abbas shook hands on Tuesday over an agreement to immediately begin their first formal peace negotiations in seven years.

US stocks surged on Wednesday as all three major indexes climbed more than 2 percent and Dow Jones industrials rose more than 200 points for the second consecutive day. The climb came after a Federal Reserve official hinted that it may lower interest rates.

Indian fund assets could more than triple to $500 billion in the next five years, with half of that held in global products as investors seek diversified portfolios, the head of ING Groep's Indian fund arm said.

Sales of previously owned U.S. homes dropped to a record low in October and businesses slashed spending on new equipment, according to reports on Wednesday that added to signs of a rapidly slowing economy. The dire housing market worsened in October as banks tightened lending standards and prices fell at a record pace. Sales of existing homes fell 1.2 percent in October to an annual rate of 4.97 million.

Technology stocks rallied early Wednesday after the broader market gained and hopes for a Fed interest -rate cut sparked.

The world's top cellphone maker Nokia is expected to issue new profit targets at next week's investor day in Amsterdam and to tout its plunge into Internet services.

Mobile phone group Vodafone and Spanish carrier Telefonica are taking stakes in a mobile advertising company in a move to battle the threat of online giants Google and Yahoo Inc.

Video game maker Nintendo Co Ltd and telecoms operator NTT's regional units said they would cooperate in Japan to promote the broadband Internet access of Nintendo's hot-selling Wii game console.

World stocks steadied while the dollar hit one-week highs on Wednesday as investors took heart from firmer U.S. stock futures and banking stocks, which calmed investor jitters about the impact of the credit woes on the financial sector.

French President Nicolas Sarkozy pledged on Wednesday to punish rioters who shot at police but sought to ease tensions with an independent probe into the deaths of two youths that triggered the unrest.

Stocks rallied on Wednesday as financial shares extended their comeback for a second day, helped by remarks by a Federal Reserve official that raised hopes of an interest rate cut. Financials were leading the Dow and S&P following Fed Vice Chairman Donald Kohn's comments. The group has struggled under tight credit conditions.

Citigroup Inc got a call from a prominent investment banker suggesting a merger with Bank of America Corp as it was dealing with billions of dollars in mortgage-related losses and the departure of Chief Executive Charles Prince, Citigroup's board dismissed the informal approach as totally out of hand and no discussions have taken place, according to a report.

General Pervez Musharraf finally quit as Pakistan army chief on Wednesday, trading the post for a second five-year term as president and fulfilling a promise many Pakistanis doubted he would keep.

As consumers flooded to Apple Inc's retails stores this holiday weekend, the firm's widescreen media player garnered the most interest of all the electronic devices, however the buzz did not translate into strong sales for iPhone's cousin.

Big business is shoveling more money than ever into U.S. political campaigns, with Wall Street donations way up, a watchdog group said on Tuesday. The securities and investment industry -- which includes brokerages, hedge funds and private equity firms -- registered the sharpest increase in giving since 2004 among all industry sectors.

Verizon Wireless said on Tuesday it will provide unrestricted access on its network to devices and applications from any company.

In an effort to boost sales, advertisers are exploring new technologies to provide consumers with more relevant ads in emerging platforms such as mobile phones and TV/ web hybrids.

U.S. search engine giant Google plans to offer internet users access to online storage services, a move which provides a boost to web computing and encroaches on Microsoft's territory, according to a report.

Wells Fargo & Co, the second-largest U.S. mortgage lender, said on Tuesday it would take a $1.4 billion fourth-quarter charge largely related to losses on home equity loans as the nation's housing market deteriorates.

A new website wants to pay you $10 for using your likeness for a week to promote a charity of your choice.

In a move that could eventually lower its energy costs and boost environmentalism, the world's top Internet search provider, Google, said Tuesday it will invest tens of millions of dollars next year in renewable energy technologies such as solar and wind power.

Citigroup Inc's decision to raise $7.5 billion in capital is a signal to analysts and investors that the largest U.S. bank is likely to have a rough fourth quarter -- perhaps even worse than it has projected. Citigroup may not be overpaying for the capital, according to convertible bond experts, but if the bank was ready to post excellent results in coming quarters, it would not likely be paying 11 percent a year for money from Abu Dhabi, investors said.

Steve Jobs has been named the most powerful person in business for 2007, according to a new list compiled by Fortune Magazine

Two-year Treasury notes fell on Tuesday as Abu Dhabi’s $7.5 billion investment in Citigroup sent stocks higher, dropping demand for the bond as a hedge against inflation.

Gold dropped on Tuesday, with lower demand for the metal as a hedge against inflation triggered by a drop in energy prices.

UK car dealer Pendragon has issued its second profit warning in five months, saying the company expects to miss full year profit targets by £12 million.

Game console makers, Microsoft and Nintendo, were under attack from Greenpeace as the environmental activist group said they are taking too long to remove toxic chemicals from their products.

Chilean stocks fell in early afternoon trade on Tuesday, as Chile's giant private pension funds (AFPs - the Association for Financial Professionals) sold stocks, while the peso weakened against the dollar.