UK props up wounded Northern Rock

LONDON (Reuters) - Britain's financial authorities stepped in to rescue mortgage lender Northern Rock on Friday as the group, which has lent aggressively to home buyers, fell victim to the sharp rise in borrowing costs between banks.

August retail sales disappoint

WASHINGTON (Reuters) - Retail sales and industrial output eked out smaller-than-expected gains in August, according to data on Friday that kept in place expectations the Federal Reserve will cut interest rates next week.

Oil spike threatens to undermine airline recovery

CHICAGO (Reuters) - This week's record-high crude oil prices casts a shadow over a tenuous recovery in the U.S. airline industry, where top carriers have less protection than they did a year ago from devastating spikes in energy prices.

GM, UAW talks have until midnight

DETROIT (Reuters) - Negotiations for a new labor contract between General Motors Corp and the United Auto Workers union resumed on Friday morning as the No. 1 U.S. automaker heads toward a midnight deadline to either clinch a deal or face a possible strike.

Merrill warns of securities value adjustments

NEW YORK (Reuters) - Merrill Lynch & Co warned on Friday that shaky credit markets forced the world's largest brokerage to adjust the value of securities linked to risky subprime mortgages and other products, in a move that could hurt third-quarter profit.

Financial shares weaken on credit worry

NEW YORK (Reuters) - Stocks ebbed on Friday, led by financial shares, after a bailout of a British mortgage company revived concerns about tight credit conditions and the impact of the U.S. housing market slump.

iPhone headed for Germany: source

BERLIN (Reuters) - Deutsche Telekom has clinched an exclusive deal with Apple Inc to sell the coveted iPhone in Germany, an industry source told Reuters.

Paulson predicts economic growth to continue

CHICAGO (Reuters) - Treasury Secretary Henry Paulson said on Friday that it will take time to work through the problems contributing to current financial market turmoil but expressed confidence U.S. growth will not be derailed.

Lilly gets FDA nod on new osteoporosis drug use

CHICAGO (Reuters) - Eli Lilly & Co said on Friday that it had won approval to market its blockbuster osteoporosis drug to post-menopausal women who are at high risk for invasive breast cancer.

Oil down on fading hurricane, new credit fears

LONDON (Reuters) - Oil eased from its record high on Friday as a hurricane subsided in the Gulf of Mexico and as fresh evidence of credit troubles in the banking sector hit financial markets.

Bank of America wins Fed OK of LaSalle purchase

NEW YORK (Reuters) - Bank of America Corp on Friday said it has won approval from the U.S. Federal Reserve for its $21 billion acquisition of LaSalle Bank Corp from Dutch bank ABN AMRO Holding NV .

Hovnanian holding 3-day home sale this weekend

CHICAGO (Reuters) - Upscale home builder Hovnanian Enterprises Inc is holding a nationwide three-day sales that effectively cuts home prices by up to $100,000 through incentives and offers extra appliances and upgrades.