Dubai World News Hits Confidence

Persian Gulf bonds tumbled and the cost of insuring against default across the region jumped a day after the government of Dubai said it would ask to postpone debt of its corporate flagship Dubai World.

European Stocks Drop on Dubai Worries

European stocks fell sharply, suffering their biggest one-day drop since April as investors reacted sharply to the unfolding debt crisis in Dubai. The dollar rebounded after a sharp sell-off in Asia in a flight to relative safety.

Dollar Rebounds in Europe Trade

The dollar rebounded in European trading Thursday after suffering steep losses in Asia where it hit a 14-year low against the yen and sparked several governments to intervene in a bid to boost the wilting greenback.

Glitch Shuts London Trade for Hours

The London Stock Exchange was hit by a technical glitch, forcing it to suspend the trading of U.K. stocks for more than three hours.

AIG to Settle With Greenberg

AIG said it has agreed to settle all legal disputes with former chairman Hank Greenberg, former CFO Howard Smith and two companies headed by Greenberg.

Toyota to Fix Pedal on Cars

The auto maker said would fix the gas pedal on four million vehicles it recalled in September over sudden acceleration issues related to floor mats causing the pedal to get stuck.

New-Home Sales Climbed in October

New-home sales unexpectedly climbed 6.2% in October despite bad weather and uncertainty over a tax credit. The median price for a new home fell slightly.

Spending, Job Data Signal Upturn

Consumer spending and incomes rose in October, while initial jobless claims fell under 500,000 last week. Durable-goods orders and a capital spending gauge were lower, signaling recovery will be sluggish.

Lachlan Murdoch Sells News Corp. Stock

Lachlan Murdoch, the elder son of News Corp. CEO Rupert Murdoch, reported selling roughly $28 million in company stock, as his investment firm plans to purchase a stake in an Australian radio broadcaster.

Fed Alters Policy on Directors

The Fed unveiled new restrictions on directors of its regional banks, responding to a controversy that spurred the resignation of a Goldman Sachs director as chairman of the NY Fed's board.

Calpers Paid Advisers After Contract Term

Calpers said it paid two hedge-fund advisers during a two-year period when the firms weren't under contract, the latest stumble by the nation's largest pension fund. The advisers got a combined $36 million.

Beal Bank Makes Play For Trump Casinos

Beal Bank made a bid for Trump Entertainment Resorts Atlantic City casinos about a week after Donald Trump abandoned his campaign to get back the properties.