WASHINGTON, Sept. 8 (UPI) -- The announced U.S. takeover of two mortgage giants sent stock indexes in Asia and Europe higher Monday.
Sunday's news that the Federal Housing Finance Agency would take control of the Federal Home Loan Mortgage Corp. (OTCPK:FREJO) and the Federal National Mortgage Association (OTCPK:FDRNP) pushed stock indexes into positive ground in Tokyo, Frankfurt and London, The New York Times reported.
Asian banks have huge investments in U.S. mortgage-backed securities. The People Bank of China holds an estimated $340 billion in Freddie Mac (NYSE:FRE) and Fannie Mae (NYSE:FNM) securities.
"The fact that they (the U.S. government) will be able to buy mortgage-backed securities from other banks is really important," William de Vijlder, chief investment officer at Fortis Investment Management in Brussels told the Times.
The rescue "goes a long way to stopping this housing deflation," said Bill Gross, the co-chief investment officer of bond investment firm Pimco.
While the move has bumped investor confidence in the near term, analysts said long-term issues -- measured, in part, by the unemployment rate hitting a five-year high at 6.1 percent in August -- remain on the table.
Poll: McCain gains momentum, enthusiasm
PRINCETON, N.J., Sept. 8 (UPI) -- Republican presidential candidate John McCain has pushed past Democrat Barack Obama in the first post-conventions survey, Gallup Poll results indicate.
While Obama held a 47 percent-to-43 percent after the Democratic Convention in Denver, McCain has turned the tables, taking a 4-percentage-point advantage among registered voters, 50 percent to 46 percent, the Gallup Poll released Monday said.
Gallup said the recently ended Republican convention in St. Paul, Minn., and the selection of Alaska Gov. Sarah Palin as McCain's running mate not only moved momentum in McCain's direction, but increased the level of enthusiasm for the GOP.
The percentage of Republicans saying they are more enthusiastic about voting in this election, jumped from 42 percent a week ago to 60 percent Monday. The Democrats' lead in this category fell from 19 points in the Democrats' favor a week ago to 7 points in the recent polling.
Gallup results were based on telephone interviews with 1,022 adults conducted Saturday through Sunday. The margin of error is 3 percentage points.
Ike crosses Cuba, weakens
MIAMI, Sept. 8 (UPI) -- Hurricane Ike lost some punch as it crossed Cuba but forecasters Monday said the Gulf of Mexico's environment could lead to the storm's strengthening.
The National Hurricane Center in Miami said Ike, downgraded to a Category 2 hurricane with top winds of 105 mph, was about 40 miles east-southeast of Camaguey, Cuba, moving west at about 15 mph, CNN reported.
Forecasters said it is too soon to predict the path along the U.S. Gulf Coast Ike likely would take but "the environment in the Gulf is expected to be very conducive to restrengthening."
Computer model sindicated Ike would rebuild to a Category 3 storm and make landfall near the Texas-Louisiana border Saturday, CNN said.
A tropical storm warning was issued for the Florida Keys. State authorities evacuated the Florida Keys during the weekend as a precaution, and U.S. President George Bush issued an emergency declaration to allow federal agencies to mobilize in Florida.
Louisiana Gov. Bobby Jindal issued a state of emergency for Louisiana, which is still recovering from Hurricane Gustav.
In Haiti, government officials said Ike killed at least 61 people, The Miami Herald said. The total death toll from back-to-back storms was more than 300, officials said Sunday.
Haiti's President Rene Preval told the Herald his government ''has made a huge effort'' to provide assistance. He said that plans were under way to send money to the country's 142 municipalities but officials need help getting food to storm victims.
"This is Katrina in the entire country but without the means that Louisiana had," Preval said.
U.S. and Venezuelan governments said Sunday they would provide relief.
Georgia claims Russian human rights abuses
THE HAGUE (OTCBB:HGUE), Netherlands, Sept. 8 (UPI) -- Georgia says it hopes to persuade the International Court of Justice in The Hague (OTCBB:HGUE) to charge Russia with human rights violations.
Georgian leaders are seeking an injunction from the court against Russia for what it calls its infringement on the rights of Georgians living in the breakaway republics of South Ossetia and Abkhazia, RIA Novosti reported Monday.
Tbilisi claims that Russian soldiers and officials forced 300,000 Georgians to flee their homes in the regions between 1991 and this year, when Georgia launched a military offensive against pro-Russian South Ossetian separatists.
But Russia also has filed a claim with the International Court of Justice, accusing Georgia of war crimes in its Aug. 8 assault on Tskhinvali, the capital of South Ossetia, the news agency said. Russia says Georgia killed hundreds of civilians in the violence, which sparked a massive Russian counter-offensive into Georgia.
The Georgian claims were filed as French President Nicolas Sarkozy led an EU delegation to Moscow, hoping to persuade Russian President Dmitry Medvedev to pull the country's forces out of positions in Georgia.
Report: Attacks kill several in Pakistan
ISLAMABAD, Pakistan, Sept. 8 (UPI) -- Several people died Monday in Pakistan's North Waziristan region in alleged U.S. drone missile attacks, witnesses claimed.
The state-run Associated Press of Pakistan said the attacks targeted a religious school in Danda Darpakhel, near Miranshah, the tribal region's headquarters, killing at least six people and injuring 18 others.
Geo TV, quoting sources, put the death toll at 20. The report said the drone fired 10 guided missiles, which also targeted the home of the son of key Taliban commander Jalaluddin Haqqani.
It wasn't clear whether Haqqani's son was killed or injured. It was also not known if Haqqani, identified as a close aide of fugitive Taliban leader Mullah Omar, was in the area.
A BBC report said the area was later surrounded by militants.
The report said U.S. forces based in Afghanistan have been accused in recent days of stepping up attacks against suspected Taliban targets across the border in Pakistan's tribal areas.
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