NEWS
- U.S. prices drop at record pace, home starts slump
- Federal Reserve slashes 2009 growth forecasts
- Compromises proposed for $25 billion U.S. auto aid plan
- Japanese, European carmakers also under pressure
- Japan's trade balance swings into deficit in October
- China police told to maintain social stability
- U.S. economy to shrink for at least 6 months - Fed's Kohn
MARKETS
- Dow closes below 8,000 for first time since March 2003
- GM shares hit 66-year low, Ford lowest in 26 years
- Bonds backed by U.S. commercial real estate loans crater
- Dollar up vs. basket of major currencies, falls against yen
- South Korean won tumbles 3.5 percent against dollar
- Oil drops to 22-month low, inventories up and demand weak
QUOTES
"It is the first time that the heart of the finances of the industrialized countries are at stake, are in a very, very turbulent and difficult episode. In that sense, it is new and it is the first time since World War Two." - European Central Bank President Jean-Claude Trichet.
"Members anticipated that economic data over the upcoming intermeeting period would show significant weakness in economic activity, and some suggested that additional policy easing could well be appropriate at future meetings." - Minutes of Federal Reserve's October policy meeting.
"My most likely outcome is for a couple of quarters of negative growth and inflation coming down, but not getting to that deflationary state," - Federal Reserve Vice Chairman Donald Kohn.
"Frankly, there seems to me to be an inherent cultural bias. Aid to blue-collar employees is being judged by a standard different than white-collar employees." - Barney Frank, chairman of U.S. House of Representatives Financial Services Committee.
"Almost all the news is negative, as you'd expect because the economy is slowing so much. There just doesn't seem to be a lot of positive points for optimists to point to." - Rick Meckler, president of investment firm LibertyView Capital Management in New York.
EVENTS
Thursday, Nov 20
WASHINGTON - U.S. Labor Department issues weekly jobless claims at 1330 GMT.
WASHINGTON - The Freddie Mac issues weekly U.S. mortgage rates after 1500 GMT.