According to the Federal Reserve's latest assessment of conditions across the US, the economy is showing no signs of a rebound from its 10 month slump. Meanwhile, the Bank for International Settlements has said that the US economy risks a hard landing unless growth picks up elsewhere in the world.
The US has said that China had agreed to restrict agricultural subsidies and open its market further to foreign insurers and retailers as part of a deal that should finally allow China to join the World Trade Organisation by the end of this year.
Three weeks after Ford announced it was recalling 13m Firestone tyres fitted mainly on its popular Explorer sports utility vehicle, the Japanese-owned Firestone has broken off a 96-year-old business relationship with the American carmaker.
The Japanese government has warned that it would downgrade its assessment of the economy, thus admitting that it is now drifting towards a recession. This is unwelcome news for Japan's trading partners such as the US, which had hoped that the former's government would pull its economy out of the gloom and help drive global growth.
Pharmaceutical companies are threatening to reduce their presence in France because of government efforts to impose price controls on prescription drugs.
Polaroid, the troubled US imaging group, is to cut 2,000 jobs or a quarter of its work force worldwide. This comes on the back of warnings that second quarter results would be no better than the first quarter, when it posted a $38m operating loss.
