* Chinese inflation hits 2� year low (Geoff Dyer, The Financial Times)
Chinese inflation dropped to its lowest in 2� years and the price of goods leaving factory gates fell 3.3 per cent in January, raising the prospect that the country will experience falling prices in coming months.
* Rising Unemployment is Gravest Threat to U.S., UK (Reuters America)
Rising unemployment is the now the largest single threat to attempts to stabilize the banking system through recapitalization and assets swaps designed to remove toxic assets from bank balance sheets.
* Oil closes below $40 for first time in 3 weeks (Newsweek)
NEW YORK – Oil closed below $40 a barrel for the first time in about three weeks as another round of poor company earnings and job cuts overshadowed an OPEC announcement Monday that dozens of production projects were being tabled.
* Tsvangirai to be sworn in as PM (BBC News)
Zimbabwe’s opposition leader Morgan Tsvangirai is to be sworn in as prime minister in a unity government with President Robert Mugabe.
* Showing just a little discipline (David Brooks, Times Union)
It’s no fun being a leader in a financial crisis. You’ve got to be bold but reassuring, free-spending but disciplined. You must decisively crush the short-term problem without freaking everybody out and leaving a long-term mess.
* Tsvangirai to take office as PM (ITN Online)
Zimbabwe’s opposition leader Morgan Tsvangirai is due to take office as prime minister in a deal with old rival President Robert Mugabe aimed at saving the ruined country.
* Zimbabwe opposition leader to be prime minister (Donna Bryson)
Opposition leader Morgan Tsvangirai takes the prime minister’s oath Wednesday as part of a power-sharing agreement with longtime President Robert Mugabe that Zimbabweans hope will bring help as they suffer through economic and humanitarian crises.
* Bank of England challenged by new independent Monetary Policy Forum (Angela Monaghan, Telegraph)
DeAnne Julius, Willem Buiter, and Sushil Wadhwani will be part of the Monetary Policy Forum, created by Fathom Financial Consulting to present the shortcomings of the MPC and present alternative options for policy makers.
* Latest AMT patch aids taxpayers (Carole Feldman-)
WASHINGTON Call it the stealth tax, the one that catches you by surprise as you’re completing your tax return.
* GM to eliminate 10,000 jobs, cut salaries (Kansas City Star)
General Motors continues to put cost-cutting plans on the table — this time announcing the elimination of 10,000 salaried jobs globally.