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U.S. stocks continue run

NEW YORK, Oct. 14 (UPI) -- U.S. markets followed their historic Monday rebound with quick gains Tuesday morning, investors cheered by the U.S. plan to buy bank equity shares.

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U.S. President George Bush said Tuesday the Treasury would steer $250 billion of the $700 billion bailout bill toward bank equity purchases.

"This is an essential short-term measure to ensure the viability of America's banking system," Bush said.

The Dow Jones industrial average, following Monday's 936 point gain, jumped 223.33 points in midmorning trading, up 2.38 percent to 9,610.94. The Standard & Poor's 500 gained 24.01 or 2.39 percent to 1,027.36. The Nasdaq composite index gained 4.80 points, 0.26 percent, to 1,849.05.

The benchmark 10-year U.S. Treasury bond fell 1 2/32 to yield 4 percent.

The dollar was mixed. The euro rose to $1.37 compared to Monday's $1.3599. Against the Japanese yen, the dollar rose to 102.602 yen, up from 101.90 yen.

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In Tokyo, the Nikkei average gained 1,171.14 points to 9,447.57, up 14.15 percent.


European bailout pledges top $1 trillion

PARIS, Oct. 14 (UPI) -- Germany and France led the pack in commitments to their nation's banks as European leaders pledged more than $1 trillion in bailout plans.

The French and German bailout plans total $1.37 trillion, The Times of London reported Tuesday.

German Chancellor Angela Merkel Monday outlined a rescue that included $549 billion in bank guarantees and an additional $137 billion in state funds to provide capital for banks. French President Nicolas Sarkozy said this government would back banks with $440 billion in guarantees for bank-to-bank lending through December 2009 and $55 billion in capital for struggling banks.

Spanish Prime Minister Jose Luis Rodriguez Zapatero pledged $137 billion to cover bank-to-bank lending, while Italy pledged "as much as necessary," The Times said. Austria said it would provide $116.8 billion for bank guarantees and spend $20.6 billion in equity investments.

Sarkozy said the financial meltdown required a bold response.

"The biggest risk at the moment would have been to lack audacity," he said.


Winnipeg Free Press workers on strike

WINNIPEG, Manitoba, Oct. 14 (UPI) -- About 1,000 workers at the Winnipeg (Canada) Free Press were in the second day of a strike Tuesday that stopped print editions from being published.

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The members of the Communications, Energy and Paperworkers Union walked off the job at noon Monday and set up pickets outside in windy and rainy weather, the Canadian Broadcasting Corp. reported.

Union issues include wages, job descriptions, workloads for paper carriers and benefits.

The newspaper's Web site said there would be no print edition Tuesday and for the duration of the strike.

Meanwhile, non-union editorial staff updated the site, and worked at covering the federal election, the CBC said.

Strike spokeswoman Mary Agnes Welch told the Winnipeg Sun there was "significant distance" between employee demands and the newspaper's management.

The workers have been without a contract since Oct. 1. Those on strike include some editorial staff, advertising, circulation and press workers and newspaper carriers.

The strike vote was supported by 84 percent of the workers, the report said.

Free Press publisher Bob Cox told the Sun talks were ongoing.

"The situation is truly in flux ... it could change at any time," he said.


China's September trade surplus soars

BEIJING, Oct. 14 (UPI) -- China's trade surplus in September, driven by slowing imports, hit a record $29.3 billion, up 22.59 percent from the same month of last year.

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It was the third consecutive month of gains, with August showing a surplus of $28.69 billion and July $25.28 billion, the General Administration of Customs said.

"The surplus jumped mainly because imports posted a much bigger slow down than exports as commodities prices and shipping rates slumped," said Li Jian, a Ministry of Commerce analyst, Xinhua news agency reported.

September exports totaled $136.4 billion, up 21.5 percent from last year. Imports during the month totaled $107.1 billion, up 21.3 percent from last year. The percentage increase in imports year-on-year, however, was lower than 23.1 percent for August and 33.7 percent for July.

The September surplus was also helped by a slower increase in the value of the Chinese yuan against the U.S. dollar.

Going forward, there is concern in China that slowing global demand may affect exports.

China's trade surplus in the first nine months of this year totaled $180.9 billion, down $4.92 billion -- 2.6 percent -- from the same period last year.

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