Price of habit chokes US smoker

Josh Muszynski: ‘I thought someone had bought Europe’

A man in the United States popped out to his local petrol station to buy a pack of cigarettes – only to find his card charged $23,148,855,308,184,500.

That is $23 quadrillion (£14 quadrillion) – many times the US national debt.

“I thought somebody had bought Europe with my credit card,” said Josh Muszynski, from New Hampshire.

He says his appeals to his bank first met with little understanding, though it eventually corrected the error.

It also waived the usual $15 overdraft fee.

“It was all back to normal,” Mr Muszynski told his local television station, WMUR. “They reversed the negative balance fee, which was nice.”

Debt crisis

His nightmare began when he checked his online bank account a few hours after buying the cigarettes.

He thought he would be a couple of hundred dollars in the black. But his overdraft had pushed him into the red – by an amount equivalent to many times the entire US national debt.

“It is a lot of money in the negative,” he said. “Something I could never, ever, afford to pay back.

The 17-digit amount on his online bill shocked Mr Muszynski

“My children could not afford it, grandchildren, nothing like that.”

In panic, Mr Muszynski rushed back to the petrol station, but they were unable to help. He says he then spent two hours on the phone with the Bank of America.

Eventually, it assured him it would be fixed – and the next morning, it had been.

But no-one has yet explained to Mr Muszynski how such a astonishing error could have been made.

Investors cautious amid turmoil

Asian share prices have continued to fall as confidence remains low

European stocks rise in cautious trade as Lloyds TSB’s takeover of UK lender HBOS dispelled some of the gloom hanging over financial markets.

Asian shares had earlier fallen sharply on fears that more companies could fall victim to the global financial crisis.

London’s FTSE 100 index was up 0.8% at 4,951 points shortly after the open and France’s main stock index rose 0.6%.

In Asia, Tokyo’s Nikkei share index dropped by 2% while Hong Kong’s main stock index slid by 7%.

Share indexes in Shanghai, Taiwan and India fell by between 3 and 5%.

Hong Kong’s Hang Seng index dropped below the 17,000 mark and Australian shares closed 4% lower.

On Wednesday, the Dow Jones index of leading US stocks fell by more than 4%.

Flight to safety

Brokers in Japan say the markets are in freefall because investors fear the US government’s efforts to stop the turmoil in the financial system are not working.

As a result, investors are looking for safer places to put their money than stocks and shares.

Traders saw plummeting shares on Wall Street on Wednesday

Many Japanese institutions have assets insured by AIG, the insurance company that was rescued by the US government on Tuesday.

And in Singapore, for the second day running, hundreds of AIG policyholders queued up outside its offices trying to surrender or cancel policies they fear could turn out to be worthless.

Feverish speculation

The US Federal Reserve’s AIG rescue package followed the collapse earlier this week of 150-year-old US investment bank Lehman Brothers, which sent shockwaves through the world’s financial community and sparked a global share price plummet.

Another investment bank, Merrill Lynch, has since been sold off to Bank of America. And in the UK, HBOS is being taken over by Lloyds TSB in a £12.2bn deal.

There has also been feverish speculation about the future of two other leading US banks – Morgan Stanley and Washington Mutual.

The New York Times quoted unnamed sources as saying an auction for Washington Mutual was under way. The Wall Street Journal reported that both banking giant Citigroup and Wells Fargo had expressed an interest in a takeover.

Meanwhile the Reuters news agency reported that Morgan Stanley, the second largest US investment bank in the US which on Wednesday saw a quarter of its value wiped off its share price, had held preliminary takeover talks with Wachovia.

None of the companies involved has made any comment on the speculation and no negotiations can be confirmed.

Banks take action

The Bank of Japan has injected another 1.5 trillion yen ($14.4bn; £7.9bn) into money markets to help stabilise them. Australia took similar steps.

The Japanese central bank’s injection was the third consecutive day it had tried to shore up cash markets as the Nikkei trades at a three-year low.

Across Asia, central banks have already pumped $33bn into money markets this week in an attempt to allay investors’ concerns and ensure the supply of funds does not dry up.

Police: Gunman kills self after standoff in bank

WHEATON, Illinois (AP) — A gunman who took a dozen hostages in a suburban Chicago bank after wresting a gun from a police officer Friday died after shooting himself in the head, police said.

Hostages were released Friday after a gunman killed himself in suburban Chicago, police say.

The standoff began around 1:30 p.m., after a Wheaton police officer responded to a call of a hit-and-run accident near the bank.

When the officer arrived, the suspect grabbed the officer from behind, held a knife to his throat and demanded his gun, Deputy Chief Thomas Meloni said.

During an ensuing struggle, the officer was cut on a forearm and the suspect was able to take the gun and run the lobby of the Wheaton Bank & Trust, where he ordered everyone to the floor, Meloni said.

Police in Wheaton, about 20 miles west of Chicago, did not immediately release the gunman’s identity.

As officers evacuated nearby businesses and homes and shut down streets and rail service, hostage negotiators talked to the gunman by phone. They were able to persuade him to release 10 hostages, leaving two behind, Meloni said.

“At one point the suspect began to close the blinds from inside the bank and he disconnected the phone contact with the hostage negotiators,” Meloni said.

Shortly afterward, about 4:15 p.m., officers heard a single gunshot and they rushed in, Meloni said. He said the man was dead of a single gunshot wound to the head.

A spokeswoman for Central DuPage Hospital, Amy Steinbruecker, said the hospital treated and released the police officer who scuffled with the suspect for minor injuries.

Television footage showed dozens of people running from the four-story bank building, which includes other businesses, with their hands above their heads.

“We locked our office door, turned off the lights, drew the blinds,” said Donna Price, 52, of McHenry, who works in the office building. “Then we heard a knock on the door and it was a SWAT guy. He told us to get out right now.

“I said, ‘Let me get my purse.’ He said, ‘No, now.”‘

Price said police held people in a stairwell of the building before ordering them out.

“We all had to put our hands up on the back of our heads and run,” Price said from a convenience store across the street where more than 100 people were crowded.

Zoom heads towards administration

The grounded plane was due to leave Glasgow Airport on Thursday morning

Transatlantic budget carrier Zoom Airlines has admitted it is applying to go into administration.

The announcement came after one of its planes was detained at Glasgow Airport on Thursday for non-payment of air traffic control charges.

UK-Canadian Zoom blamed its problems on the “horrendous” price of aviation fuel and the wider economic slowdown.

People due to travel on Zoom have been told to check their flight’s status.

‘Support and advice’

Zoom’s admission of financial difficulties came after BAA, the owner of Gatwick Airport, said it had been instructed by the UK’s Civil Aviation Authority to detain a Zoom plane that was due to fly to the Canadian cities of Halifax and Ottawa.

BAA said another Zoom flight from Glasgow to Vancouver had also been delayed.

“BAA is working with Zoom Airlines to provide support and advice for passengers,” said the airport company.

Meanwhile, a Zoom plane was grounded overnight in Calgary, Canada, a move also said to be in connection to overdue charges.

“Zoom Airlines Ltd based at Gatwick and Zoom Airlines Inc based in Ottawa, Canada, have sought creditor protection by filing legal notices of intention to appoint an administrator in both the UK and Canada,” said Zoom executive chairman Hugh Boyle.

He added that while Zoom sincerely apologised for those passengers affected by the grounded aircraft, its “flights will continue to operate”.

Zoom operates services from Glasgow, Gatwick, Manchester, Cardiff and Belfast International airports a well as from European airports to a number of North American destinations.

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German shopper mood remains weak

German consumers are not in an optimistic mood

German consumer confidence has fallen to a fresh five-year low, as recession and high inflation fears continue to sour the mood among shoppers.

The news came from market research firm GFK, whose forward-looking consumer confidence index has dipped to 1.5 points for September from August’s 2.1.

Further gloom was offered by restated official data which confirmed that the economy contracted from April to June.

Germany’s economic output fell 0.5% quarter-on-quarter in the period.

If this contraction was to continue between July and September, then Germany would formally be in recession.

‘Depressed mood’

Fueled by high energy and food costs, German inflation is continuing at its highest level since 1993, hitting household spending.

German companies are further being hit by high raw material costs, and in addition to lower domestic consumer spending, concerns remain the impact of a global economic slowdown.

The high value of the euro has also been a problem over the past year, although the dollar has rallied in recent weeks, offering some respite to German exporters.

“In addition to the continued price hikes for energy and fast moving consumer goods, expectations of weaker economic development are depressing the consumer mood in particular,” said the GFK report.

GFK surveys around 2,000 consumers for its monthly consumer confidence guide.