(Source: Associated Press/AP Online)
By The Associated Press
A look at economic developments and stock-market activity around the world Thursday:
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KIEV, Ukraine - The European Union said that gas supplies should restart after it struck a deal with Russia on supervising the flow of gas through Ukraine. Russia cut off natural gas supplies to Europe on Tuesday during freezing winter weather as a payment dispute with Ukraine escalated. Russia claims Ukraine siphoned off gas for its own use. Ukraine denies this. Czech Prime Minister Mirek Topolanek, whose country holds the EU presidency, said he spoke to Russian Prime Minister Vladimir Putin and German Chancellor Angela Merkel and they agreed on how monitors should check the amount of Russian gas entering and leaving Ukraine.
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LONDON - The Bank of England cut interest rates by a half percentage point to 1.5 percent, the lowest level in its 315-year history, taking the bank into uncharted territory as it attempts to ward off a prolonged recession. The central bank is nearing the limits of conventional monetary policy after trims totaling 3.5 percentage points since the beginning of October amid Britain's bleakest year since the early 1990s recession. Meanwhile, administrators for Waterford Wedgwood PLC, the collapsed maker of classic china and crystal, said they had reached a tentative agreement with U.S. private equity firm KPS Capital Partners over the sale of many of the company's assets. The company filed for bankruptcy protection earlier this week after failed attempts at a restructure or a sale. The FTSE 100 index of leading British shares closed 2.14 points lower at 4,505,37.
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TOKYO - Japanese electronics component maker TDK Corp. said it would cut 8,000 workers and post its biggest net loss ever this fiscal year, due to falling orders and a stronger yen. The company - known to consumers for its DVDs, audio tapes and other recording media - will cut the jobs as it closes four factories outside of Japan. Meanwhile, media reports said Mitsubishi Motors Corp. will slash more than 2,000 temporary jobs in Japan by the end of March as the country's fourth largest automaker struggles in the face of a severe slump in sales worldwide. The Nikkei 225 stock average lost 362.82, or 3.9 percent, to 8,876.42, snapping a seven-day winning streak as the yen traded higher.
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BERLIN - Commerzbank AG said it will get 10 billion euros ($13.5 billion) in fresh capital from a German government rescue fund, leaving the government with a 25 percent stake. The German government put together its rescue fund, worth up to 500 billion euros, last fall. Meanwhile, official statistics showed that in November, German exports declined 10.6 percent from October and 11.8 percent from the previous year - the sharpest month-on-month drop since the country's reunification in 1990.
