Business and Finance
STOCKS SURGED world-wide and the dollar jumped against the mark after Germany cut key interest rates, raising hopes of lower U.S. rates and a boost to the world's economies. But the German cuts may be too small to do much good, and Fed officials said they don't plan any quick action on rates. The Dow Jones industrials gained 70.52 points, or 2.1%, to 3376.22, and the S&P 500 rose 1.4% to a record. Share prices soared 4.4% in Frankfurt, 4% in Paris and 2.2% in London.</br></br>First Chicago plans to try to sell $2.1 billion in foreclosed property and problem real estate loans, and is taking a related $625 million write-down. The move could lead other banks to follow suit, depressing real estate prices. First Chicago stock rose $2.375 to $33.</br></br>---</br></br>Mellon Bank agreed to buy money management firm Boston Co. from American Express's Shearson unit for $1.45 billion in cash and stock. The sale will bolster Shearson financially and let American Express concentrate on its flagship card business. Mellon outbid PNC, another Pittsburgh bank.</br></br>---