US-BUSINESS Summary

Wall Street drops on bleak employment data

NEW YORK - U.S. stocks fell at the open on Friday after U.S. unemployment reached a more than 26-year high and topped the psychologically important 10 percent level. The Dow Jones industrial average <.DJI> was down 58.65 points, or 0.59 percent, at 9,947.31. The Standard & Poor's 500 Index <.SPX> fell 6.33 points, or 0.59 percent, at 1,060.30. The Nasdaq Composite Index <.IXIC> dropped 12.36 points, or 0.59 percent, at 2,092.96.

U.S. unemployment rate hits 10.2 percent

WASHINGTON - The U.S. unemployment rate unexpectedly jumped to 10.2 percent in October, breaching the politically sensitive double-digit barrier for the first time in 26-1/2 years, even though the pace of job losses slowed. A Labor Department report showed on Friday that employers cut 190,000 jobs last month, more than the 175,000 markets had expected. Economists had looked for the jobless rate to rise to only 9.9 percent from 9.8 percent the prior month.

AIG posts second straight profit

NEW YORK - AIG, the giant insurer bailed out by the U.S. government, posted its second straight quarterly profit on Friday, helped by recovery in the value of its investments. American International Group Inc <AIG.N> shares, which rallied on Thursday ahead of the earnings report, fell sharply in premarket trading, despite results that topped Wall Street expectations. AIG's main insurance business remained weak.

Blackstone posts profit; sees more deals ahead

NEW YORK - Private equity firm Blackstone Group LP <BX.N> posted a quarterly profit, topping expectations and reversing a year-earlier loss, and said it expects to do more deals following an improvement in the lending markets. The company, which has immense real estate and private equity assets, has increased its deal activity in the past few months, including buying Anheuser-Busch InBev's <ABI.BR> U.S. theme parks for up to $2.7 billion. It is also considering initial public offerings for a number of its companies.

G20 to stay the course on economic stimulus

ST ANDREWS, Scotland - The Group of 20 leading nations will agree this weekend it is too early to pull the plug on emergency support for the global economy and launch a new system of checks to help rebalance world growth and prevent future crises. British finance minister Alistair Darling is hosting the third meeting of G20 finance ministers and central bankers this year in St Andrews, Scotland from later on Friday, aiming to put flesh on the bones of agreements made at a leaders' summit in Pittsburgh in September.

Kraft in waiting game as Cadbury deadline nears

LONDON , sources familiar with the matter have said, before sweetening its bid later.

Calpers knew in 2003 about forex trading hits: report

- California Public Employees' Retirement System, knew it was paying uncompetitive rates on foreign-exchange trades as early as 2003, the Wall Street Journal said, citing a consultant who advised the largest U.S. public pension fund. Last month, California's attorney general sued State Street Corp <STT.N>, contending that State Street Bank and Trust overcharged Calpers and the California State Teachers' Retirement System for the costs of executing foreign currency trades since 2001.

RBS's Q3 loss halves but more bad debts to come

LONDON in the third quarter as impairments fell, but less favorable trading battered investment banking profits. Part-nationalized RBS said impairment losses totaled 3.3 billion pounds, down 30 percent from 4.7 billion in the second quarter and were showing signs of leveling off.

BA hints worst over for business travel, shares up

LONDON this year. Shares in the company jumped as much as 8 percent, making it the biggest gainer on the FTSE 100 index <.FTSE>, as the company also said revenue from business travelers was back at pre-credit crunch levels by one industry measure.

GM readies Opel plan, workers strike

DETROIT/RUSSELSHEIM, Germany - General Motors Co <GM.UL> on Thursday said it was readying a plan to restructure Opel and could pay off debt due this month as German workers went on strike to protest the automakers decision to keep the European unit. Thousands of auto workers put down tools at German factories, saying GM had betrayed their interests by reversing a decision to sell a majority stake in Opel to a Russian-backed consortium led by Magna International <MGa.TO>.