Stocks of computer giant Apple were downgraded by two rating agencies on concerns that consumers were less likely to spend money on electronic gadgets in times of continuing economic slowdown.

On Monday, analysts from both RBC and Morgan Stanley slammed Apple with neutral ratings thus downgrading from buy, based on predictions that consumers would refrain from buying non-essential electronic products unless there was a significant increase in their disposable incomes. This is bad news for Apple since a decline in the sales of Mac notebooks and desktop computers would mean a slash in its growth rate.

Apple shares plunged by 16% in Monday’s morning trading as reports of downgrades hit the morale of the investors. This is an indication of how popular consumer devices can lose steam in a weakened economy. In recent times, Apple growth figures have not only been hampered by slowing PC sales but also by the fact that it has no product in the below-$1000 price range which is a market section that has seen comparatively less slow down.

Aftershocks of the finance market crisis are being felt across nearly all sectors and technology majors like Apple and Research in Motion too have seen their shares fall in the past month.

The first ever cap and trade greenhouse gas auction in the United States raised around $40 million that will be utilized by the Northeast states for developing renewable and energy efficient technologies.

Power companies were the biggest spenders in the greenhouse gas auction which is a product of the Regional Greenhouse Gas Initiative and covers ten states in the North-eastern part of the country. If successful, this might become a national model for reduction of carbon dioxide emissions. According to the RGGI, all fossil burning power plants in the ten states were asked to buy credits to cover the carbon they emit. The results of the auction which netted a total of $38.5 million were announced on Monday.

While carbon credits have been traded before in commodities market, this marked the first instance of a government-mandated auction in the United States. The next auction in the quarterly series is schedule to take place in December.

Thursday’s cap and trade greenhouse gas auction raised $38.5 million in all and the money is slated to be distributed among the states of Maryland, Maine, Connecticut, Rhode Island, Massachusetts and Vermont. The states intend to invest the money in renewable and energy-saving technologies besides beneficial programs for utility rate payers.

Personal spending in the US continued to stagnate in August as consumers remained disillusioned by the economic slowdown, revealed a government report on Monday.

A report issued by the Commerce Department showed that consumer spending figures remained unchanged in August despite a 0.2% increase in rate of personal spending predicted by economists. The last time consumer spending stagnated to this extent was in February this year.

The only bright spot in the Commerce Department report was a slight increase in the personal income figures which has registered a marginal rise of 0.5% in August. This is particularly welcome as it comes after a revised 0.6% decline in personal income for the month of July. Analysts had forecast that personal income for August would rise by 0.2%. However the report also points out that after adjusting for taxes and price changes, real disposable income for consumers have fallen by 0.9%.

Consumer spending had picked up earlier this year in May and June when stimulus grants worth billions of dollars had been distributed among Americans. The Economic Stimulus Act 2008 had been passed in order to give a fillip to economic activity, the bulk of which is driven by personal spending from consumers.

Bruce Springsteen and the E Street Band will be performing at the half-time slot of the Super Bowl Game, billed as annually the most-watched musical performance in the United States.

On Sunday night, the NFL and NBC issued a joint statement announcing that the Bridgestone Super Bowl XLIII half-time show will feature performances by rock icon Bruce Springsteen as well as the E Street Band. The Super Bowl is scheduled to take place on 1February next year at the Raymond James Stadium in Tampa, Florida.

The Super Bowl half-time show attracts the largest percentage of viewers annually in the country. According to an estimate, this year’s half-time show was watched by 148 million people in the US alone while being telecast in 230 nations and territories across the world. The half-time spectacle of the championship game of American football this year featured Tom Petty and the Heartbreakers

The half-time show of the Super Bowl will be aired on the NBC network and is an NFL network production. With this act, Bruce Springsteen and E Street Band will be entering the league of high-profile artists like Rolling Stones, Paul McCartney, U2, Prince and Janet Jackson who all have performed at the Super Bowl half-time spectacle in recent times.

Crude oil prices fell by more than $10 per barrel on Monday after a $700 billion finance rescue plan was rejected in the US House of Representatives. This marked the second biggest drop of crude prices in dollar terms ever on an active contract.

At the New York Mercantile Exchange, light sweet crude for November delivery plunged by $10.52 or 8.9% to settle at $96.37 a barrel. The fall comes exactly a week after crude prices shot up by $16.37 in the biggest one-day gain ever as traders rushed to buy futures before the October contract expired.

Besides the rejection of the $700 billion bail-out measure, the reason for drop in crude prices is also being attributed to a stronger dollar which seems to have gained over the euro and pound due to turmoil in the European markets. The sharp fall in prices of crude oil has left analysts worried since it indicates that economic weakness is spreading across global markets. This coupled with a seasonal decline in demand for petroleum could drive crude prices even below $75 a barrel, feel some economic experts.

Monday’s fall in crude oil prices came as lawmakers in the House voted down the long-negotiated finance rescue proposal carrying a price tag of $700 billion which would have been used to clean up tainted assets of finance firms and thus ease up the credit crunch plaguing the markets.

The US House of Representatives rejected on Monday the $700 billion rescue plan which had been initiated by the Bush administration to bail out the country’s finance sector devastated by a massive meltdown.

The measure which would have authorized the biggest government intervention in the markets since the Great Depression went down mainly due to partisan wrangling and was defeated by a vote of 228 to 205. While Democrats voted 140 to 95 in favor of the legislation, only 65 Republicans supported the bill and 133 voted against it.

The finance rescue proposal, if passed, would have set aside $700 billion for Treasury Secretary, Henry Paulson to buy up troubled assets of finance companies. This would have gone a long way in easing up the credit crunch which continues to affect the economy in the aftermath of last year’s housing market crisis.

Markets reacted strongly to the defeat of the bail-out measure. While the Dow Jones Industrial Average plunged by 778 points or 6.98% in the biggest drop ever, the Standard & Poor’s 500 Index sank by 8.4%.

Despite Monday’s defeat, it is not yet the end of the road for the finance rescue bill. Majority leader, Steny Hoyer’s announcement that the House would take up the measure again during the week thus has already started off a scramble among its backers to garner additional support.

Wachovia Corp ended days of negotiations with potential buyers by reaching a 2.16 billion deal with Citigroup Inc, the biggest bank in the United States by assets.

According to the terms of the all-stock deal, Citigroup Inc will acquire the banking operations of Wachovia Corp for $2.16 billion and will pay $1 for each share of Wachovia. However the Federal Deposit Insurance Corp has assured that all depositors will be protected. The New York-based Citigroup plans to slash its own dividends by half and raise around $10 billion in capital so as to take on the senior and subordinated debt of Wachovia. The acquisition will land Citigroup with an extensive network of Wachovia branches and offices totalling 3300 in 21 states. However, Wachovia will keep its control of the A.G. Edwards Inc brokerage and the Evergreen mutual-fund family.

Charlotte-based Wachovia Corp is the sixth largest US bank by assets but owing to overdue mortgages, the bank experienced massive collapse of its shares and was thus compelled to look for a buyer. The acquisition of Wachovia Corp is the latest development in the country’s finance sector which has been rocked by the failure of major institutions like Lehman Brothers and Washington Mutual as well as by the takeovers of Merrill Lynch and Bear Stearns Co.

In yet another sign of the financial crisis spreading from US to Europe, the British government has decided to nationalise the beleaguered mortgage lender Bradford & Bingley.

The Treasury announced on Monday, that the British government would take over the bank’s mortgage and loan books, worth 50 billion pounds or $90 billion in an attempt to maintain financial stability in the country. The government has also incurred an additional expense of 18 billion pounds or $30 billion in order to facilitate the sale of the savings business of Bradford & Bingley to Banco Santander of Spain. According to the terms of the sale, Santander would pay 612 million pounds or $1.1 billion for the complete retail network of Bradford & Bingley which includes 197 branches and deposits of 20 billion pounds.

Banco Santander is the second largest bank in Europe and its purchase of the retail division of Bradford &Bingley marks the latest instance of major financial institutions being brought back from the brink, either by acquisition or government rescue. While Fortis, the Belgian and Dutch financial firm received a boost from joined efforts by three European governments, Germany’s Hypo Real Estate Holding AG was saved from collapse by a multibillion euro line of credit from several European banks.

Fortis, the Belgian-Dutch financial services company received a breather after three European governments came together to bail out the firm from collapsing into bankruptcy.

The governments of Netherlands, Belgium and Luxembourg have agreed to jointly raise 11.2 billion euros or $16.3 billion in order to save Fortis from sinking into insolvency. The bank has been incurring huge losses in the wake of a series of credit-related write-downs. Fortis is the largest European bank so far to have been pulled down by the market crisis affecting financial sectors across the globe.

Under the terms of the bail-out package, Fortis will have to give up the sections of ABN-Amro it acquired last year. On the other hand, each country will invest in equal-sized stakes in Fortis’ banking operations of that country. Belgium for instance will buy a 49% stake in the banking units owned by Fortis for 4.7 billion euros or $6.8 billion. likewise, Netherlands is buying a similar-sized stake in Fortis’ Dutch banking units for 4 billion euros or $5.8 billion while Luxembourg plans to extend a loan of 2.5 billion euros which can be converted to a 49% stake in Fortis’ banking business in Luxembourg.

One of the major losers in the multinational bail out of Fortis will be its largest shareholder, Ping An Insurance of China.

Rhode Island is set to receive almost $20 million in federal grants from the Department of Housing and Urban Development in order to buy, redevelop or sell foreclosed properties in the region.

The Department of Housing and Urban Development has approved a grant of $19.6 million for Rhode Island which has been hit badly by the housing market crisis since last year. According to Rhode Island Senator Jack Reed of the Democrat Party, the nearly $20 million aid would enable homeowners as well as communities to stay protected from devaluing impact of foreclosed properties that fall into disrepair. In areas suffering from foreclosures, it is necessary to renovate and sell foreclosed properties since vacant properties attract crime and blight which eventually drive down real estate prices in the area.

Rhode Island has the highest rate of foreclosures in the New England region. Nationally, Rhode Island ranks sixth in the list of most foreclosed properties started during the second quarter of the current year. Around 1700 mortgage holders in Rhode Island initiated foreclosure proceedings in the three-month period ending June 30. Practically the whole of United States continues to suffer the after-effects of last year’s housing market crisis which not only led to the collapse of major mortgage lenders but left many homeowners with the prospect of foreclosed properties.