Sept. 15 - Summary of business headlines: BlackBerry maker Research in Motion results much worse than expected; IMF chief urges bold action on global economy; Stocks rally in U.S. and Europe as central banks announce loan program for commercial banks. Conway G. Gittens reports.
Research in Motion suffered a 47-percent drop in quarterly profits. The BlackBerry maker's results were even worse than the company warned in June. RIM shipped 10.6 million smartphones and only 200,000 of its PlayBook tablet, those numbers were also way below analysts forecasts. In the latest U.S. economic snapshot: initial jobless claims surprisingly spiked to a 2-1/2 month high, factory activity in the Mid-Atlantic shrank for a second straight month, and consumer prices rose more than expected. But in bright spots: industrial production was up in August and total foreclosures were down. In regards to the global economy: International Monetary Fund Chief Christine Lagarde says politicians and policymakers need to come up with bold actions to put the world economy on a path to recovery. SOUNDBITE: INTERNATIONAL MONETARY FUND MANAGING DIRECTOR CHRISTINE LAGARDE (ENGLISH): "But there is a path and it will require a strong political will across the world -- not just in one country, but in many countries and it will require decisive action on the part of some central banks." Pumping more dollars into the system, to prevent an end-of-the year funding crisis for commercial banks in Europe, is one action central banks are willing to take. That announcement helped lead to a four-day rally on Wall Street, something not seen since early July. In Europe, UK police confirm a UBS trader has been picked up, suspected of $2 billion in unauthorized trades. Meantime, stocks were up solidly across Europe lead by strong gains in the banking sector. Conway Gittens, Reuters