IBT Staff Reporter

U.S stocks rallied for a second day on Wednesday following the half a point drop in interest rates issued by the Federal Reserve yesterday.

Gold prices continued to advance Wednesday on expectations that lower interest rates will weaken the dollar, increasing the desirability of alternative investments.

Data surfacing on Wednesday indicates that consumer prices posted a rare decline in August, while the housing industry saw construction fall to the slowest pace in 12 years.

Energy futures soared on Wednesday following the Fed's half-point rate cut yesterday and new inventory data that surfaced.

GE Energy, the energy arm of U.S. conglomerate General Electric Co, will not sell its Baglan Bay gas-fired power plant in Britain this year, the company said on Wednesday.

Vice President Dick Cheney on Wednesday disputed former Federal Reserve Chairman Alan Greenspan's portrayal of the Bush administration's economic policies as fiscally reckless.

Colombia's imports expanded 12.5 percent in August compared with the same month a year earlier, driven by strong domestic demand, according to preliminary government figures.

Overall inflation in Canada slowed to an eight-month low in August and the core rate targeted by the Bank of Canada also eased, likely comforting the central bank after recent debt market turmoil led it cancel plans to raise interest rates.

Apple Inc's new iPod Nano portable music and video player boasts lower component costs than the previous version, market research firm iSuppli said on Wednesday.

Apple President Steve Jobs reiterated his commitment to charging the same price for iTunes downloads across Europe as his lawyers defended the company on Wednesday against allegations its prices are not uniform.

Applications for home mortgages climbed for a third straight week as more borrowers sought to refinance loans on which payments may be about to rise, an industry group said on Wednesday.

Oil will continue to trend higher after hitting fresh highs over $82 a barrel but are unlikely to puncture the $100 level this year, Texas oilman and investor T. Boone Pickens said on Wednesday.

Diversified manufacturer Honeywell International Inc said on Wednesday it signed a contract to provide major mechanical systems for Airbus's new long-range, wide-body A350 aircraft, and expects to generate more than $16 billion in revenue over the projected 20- to 25-year life of the program.

SAP AG on Wednesday unveiled a long-delayed line of Web-based software called Business ByDesign that costs $149 per user, per month, and is at the heart of a strategy to accelerate the company's sales growth.

U.S. gold futures rose early on Wednesday on strong follow-through buying and inflationary worries, extending gains from Tuesday when gold contracts surged to a 28-year high after the Federal Reserve half-percentage point rate cut.

The dollar rose from a 15-year low against a basket of currencies on Wednesday as investors bet the Federal Reserve's interest rate cut on Tuesday will help boost a slowing U.S. economy.

U.S. Stocks rallied for a second day on Wednesday as investors bet the Federal Reserve's aggressive rate cut would help prevent an economic slowdown. Housing-related stocks such as home builders and mortgage finance companies were among the biggest percentage gainers in the S&P 500, a day after the Fed cut the benchmark interest rates by a half-percentage point.

Oil slipped on Wednesday after setting a record high above $82 a barrel, with dealers eyeing a diminishing storm threat to oil rigs in the Gulf of Mexico.

Stocks rallied for a second day on Wednesday after an aggressive U.S. rate cut soothed concern the U.S. economy would slip into recession, stirring demand for riskier investments and killing demand for safe-haven bonds.

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Almost three-quarters of homeowners accept that property prices could fall in the next year -- but only 2 percent would sell up in that eventuality, research shows.

People are the cause of most breaches in banking security, a report shows. Employees and customers are the key sources of security breaches, according to a survey of financial services companies by business advisory firm Deloitte.

The Bank of England made a surprise U-turn on Wednesday, offering to inject 10 billion pounds ($20 billion) next week into money markets in a bid to bring three-month interest rates down.

Fannie Mae and Freddie Mac, the biggest sources of U.S. housing finance, can buy $20 billion more in subprime mortgages under rules unveiled on Wednesday to help revive a market crippled by tighter lending standards.

British insurer Standard Life said on Wednesday it was considering the possibility of making a cash and shares offer for rival Resolution, which has already agreed to merge with Friends Provident.

Procter & Gamble Co, the world's top maker of household products, will consider brand acquisitions in China to shore up and expand its leading position among multinationals muscling into the booming but fractured domestic consumer goods market.

Wall Street bank Morgan Stanley plans to buy into China's Jutian Fund Management Co in a move to tap China's red-hot wealth management sector, sources close to the situation said on Wednesday.

Shares in Bank of Beijing doubled in their debut on Wednesday, lifted by strong investor interest in new shares and upbeat prospects for the domestic banking sector as the country's economy keeps growing strongly.

Toshiba Corp said on Wednesday it would sell a landmark building in Tokyo's Ginza district for 161 billion yen ($1.4 billion) to Tokyu Land Corp.