KEY POINTS:
Fallout from the credit crunch continues to land hard around the world.
UNITED STATES
* The number of Americans drawing unemployment benefits has surged to a 25-year high. The Labor Department reported the number of people on unemployment benefits jumped by 122,000 to 3.84 million in late October,
well above analysts' estimates of 3.74 million. That was the highest level since late February 1983, when the US was struggling to recover from a long and painful recession.
BRITAIN
* The Bank of England cut rates by 1.5 points to 3 per cent yesterday, the lowest level in more than half a century. Investors, who had expected a cut of 50 basis points, called the move "astonishing" and "spectacular". The European Central Bank followed with a cut of half a percentage point to 3.25 per cent.
* The British Government has set aside £800 million ($1.3 billion) for British savers who lost their money when Icelandic-owned Internet bank Icesave collapsed last month. The approximately 230,000 British depositors whose money vanished when Icesave's parent bank, Landsbanki, went into receivership in October will receive compensation to replace all of their lost savings.
ICELAND
The International Monetary Fund has approved a $2.1 billion loan for Iceland to help its collapsed banking system recover and stabilise. The decision by the IMF's executive board on the two-year loan means Iceland gets access immediately to $833 million.
HUNGARY
Hungary is preparing a financial aid package worth up to 600 billion forints ($3 billion) to boost domestic banks' capital and help them refinance debts. The aid package for "Hungarian banks of systemic importance" comes as part of the $25.1 billion standby loan for Hungary announced last month.
SWITZERLAND
The Swiss National Bank cut its key interest rate by half a percentage point to 2 per cent on Thursday, its second reduction since March 2003. The central bank said its move is intended to stimulate the economy and higher interest rates were not needed because Swiss inflation is expected to decline.
SOUTH KOREA
South Korea's central bank has cut its key interest rate for the third time in less than a month to 4 per cent from 4.25 per cent.
SINGAPORE
Singapore Airlines said its July-September profit fell 36 per cent as fuel costs boosted expenditures. The airline warned passenger demand may drop next year.
AUSTRALIA
The IMF says Australia's economy will grow by 1.8 per cent in 2008-09, slightly less than the 2 per cent forecast by the Rudd Government in the middle of the year.
BRAZIL
Brazilian officials say the economy will grow by 4 per cent next year, down from earlier estimates of up to 5 per cent. Most independent analysts say Brazil's economy is only likely to expand by about 3 per cent next year.
