World stocks edge up… Crude oil falls, trades just above $51 a barrel… U.S. dollar firmer, U.S. bonds rise

Bad data pushes investors into US treasuries…  Barclay’s says the euro will rally…  SNB surprises with a rate cut…  Iceland gets their bailout… And Now… Today’s Pfennig!

MSCI world equity index up 0.9 percent at 192.09, Hopes for interest rate cuts cushion economic gloom, Government bonds rally; oil rises from 3-1/2 year low

The board of directors of Citigroup Inc. (C) will meet today to look at beleaguered banking giant’s options after its shares hit a 15-year low, and speculation is escalating that it will have to look at a break-up, spin-off or sale of at least part of the bank.

U.S. Treasury Secretary Henry M. Paulson yesterday (Wednesday) announced a reshaping of the government’s $700 billion Troubled Asset Relief Program. Instead of purchasing troubled assets directly from banks, Paulson said the majority of the funds allotted to the Treasury Department would be used to purchase equity stakes in financial institutions and bolster the consumer credit market.

Fannie Mae (FNM) and Freddie Mac (FRE), the mortgage giants taken over by the federal government back in September, will lower monthly payments for hundreds of thousands of struggling U.S. homeowners as part of a plan to accelerate anti-foreclosure efforts, federal officials announced yesterday (Tuesday).

The Bush Administration is considering a plan that could keep as many as 3 million homeowners who are behind on their mortgages from losing their houses, The New York Times reported today (Thursday).

The U.S. government is looking for ways to facilitate a merger between General Motors Corp. (GM) and Chrysler LLC, in the hopes of keeping the once vibrant industry afloat during a time of crisis. But Uncle Sam’s credit card is close to maxed out and a bailout for the auto industry could open the door for other troubled industries to come calling.

Foreclosures continue to plague the U.S. housing market, but government agencies are working to develop a plan to aid struggling homeowners, and in turn, strengthen the U.S. economy.

52-Week T-Bill is Back; Sweet-Smelling Deal for FTD; First Family of Oil Calls for Environmental Focus; Garmin Losing Track; PepsiCo. Stocking up on Water; Bovespa Hits Record on S&P Rating; Kraft Profit Tumbles 13%; Kellogg Profit Sheds 2%.