The most severe financial crisis in 80 years had a significant impact on emerging markets, leading to emergency actions by central banks and calls for international assistance to prevent investors from withdrawing their funds. In the United States, Wachovia Corp, soon to be acquired by Wells Fargo & Co, reported a record $23.9 billion loss in the third quarter, highlighting the ongoing challenges in the global credit crisis. Emerging market assets such as stocks, sovereign debt, and currencies faced heavy selling pressure as investors liquidated their positions due to concerns about the worsening global economy. Despite efforts by authorities worldwide to stabilize the financial system, fears of a global recession persisted. Hungary raised interest rates by three percentage points in an attempt to protect its currency, the forint. Belarus has asked for a loan from the IMF, while Ukraine anticipates receiving significant financial assistance from the IMF. The IMF is also prepared to assist Pakistan and Iceland, which are facing financial challenges. Neil Dougall, chief economist at Dresdner Kleinwort, believes that capital is shifting from emerging markets to developed markets. Various officials expressed optimism about the financial crisis despite the problems it has caused, with billions of dollars in rescue packages being implemented by governments worldwide. U.S. Treasury Undersecretary David McCormick acknowledged the challenging times ahead for the U.S. economy but suggested a potential recovery by late next year. Similarly, Mervyn King, governor of the Bank of England, indicated that the worst may be over for the financial system, although stability remains a distant goal. The strategy to rebuild the banking system, both domestically and internationally, is expected to be recognized as the turning point in the recent banking crisis. This belief was reinforced by a decrease in U.S. dollar short-term funding costs in London and Asia, indicating that banks are starting to rebuild trust. Russia, a strong emerging market that has been heavily impacted by the crisis, has also shown signs of progress in bank lending. "Interbank lending is returning to normal levels. Although rates are still high, they are beginning to decrease." Banks have begun lending to sectors once again, but according to First Deputy Prime Minister Igor Shuvalov, it will take two to three weeks for the situation to show signs of improvement. The main concern overshadowing the progress in combating financial collapse is the deteriorating global economic climate. The Bank of England's recent meeting minutes revealed that the UK economy had significantly worsened, with Governor King suggesting that the country may be entering its first recession in 16 years. These concerns have caused turbulence in financial markets. Wall Street seemed poised for a weak opening, with Dow Jones industrial average futures dropping 259 points, almost 3 percent. European shares were down over 4.4 percent, while Japan's Nikkei average closed 6.8 percent lower. In emerging markets, MSCI's sector index hit its lowest level since June 2005, and sovereign debt spreads widened to over 700 basis points above Treasury yields for the first time since early 2003. Apart from the forint, other currencies were also struggling, with the Turkish lira falling to a more than two-year low and South Africa's rand hitting its lowest point in over six years against the dollar. Sanjay Mathur, an economist at the Royal Bank of Scotland in Singapore, warned that the upcoming business cycle downturn could be quite severe. A variety of US companies reported their results on Wednesday, providing an overview of the current conditions in different industries and sectors in the largest economy in the world. Tobacco companies Philip Morris International and Reynolds American Inc exceeded analysts' expectations with their quarterly profits, as did fast-food chain McDonald's Corp. However, these positive results stood out against an otherwise challenging backdrop.