Reuters - The Federal Reserve held U.S. interest rates steady on Tuesday, expressing concerns about both economic growth and inflation and indicating it is in no rush to push borrowing costs higher.

Reuters - Morgan Stanley told thousands of clients this week that they will not be allowed to withdraw money on their home-equity credit lines, Bloomberg News reported Wednesday, citing a person familiar with the situation. Most of the clients had properties that have lost value, the agency reported, citing a person who declined to be identified.

Reuters - Citigroup Inc is in talks with state and federal regulators to resolve allegations of wrongdoing in the auction-rate-securities market that could result in its buying back several billion dollars of the illiquid securities, Wall Street Journal said.

Reuters - Yahoo Inc on Tuesday released a recount of the vote for its board that revealed a strong protest vote against five of nine directors, including Chief Executive Jerry Yang.

AP - The U.S. service sector contracted in July — though less than expected — as new orders decreased and prices rose, stifling growth for truckers, retailers and insurers.

Reuters - Sony Corp (6758.T) agreed to buy Bertelsmann's 50 percent stake in their Sony BMG music joint venture for around $900 million, ending a four-year venture that never managed to beat the music industry's woes.

Reuters - Procter & Gamble Co , the world's largest consumer products company, posted higher quarterly profit on Tuesday, as price increases and cost controls more than offset soaring costs for oil and other commodities.

Reuters - The U.S. service sector shrank slightly for the second consecutive month in July but by less than economists had expected, according to a report released on Tuesday that also showed inflation pressures moderating.

Reuters - The U.S. Federal Reserve held a key interest rate steady on Tuesday in an effort to nurse the economy back to health without further exacerbating inflation.

Reuters - U.S. mortgage market giant Freddie Mac's chief executive dismissed internal warnings that could have protected the company from some of the financial problems now engulfing it, the New York Times said, citing more than two dozen current and former high-ranking executives and others.