March 10 (Bloomberg) -- U.S. stocks fell, extending the worst weekly slump in the Standard & Poor’s 500 Index since November, after Warren Buffett said the economy “has fallen off a cliff” and the World Bank predicted a global contraction. General Electric Co.’s Jeffrey Immelt says he’s prepared to steer through a financial “armageddon” that has wiped out 78 percent of GE’s market value in a year and forced its first dividend cut since the Great Depression.

TOP STORIES/MOST READ ON BLOOMBERG

Immelt Says ‘Armageddon’ Will Leave GE and Him Intact

General Electric Co.’s Jeffrey Immelt says he’s prepared to steer through a financial “armageddon” that has wiped out 78 percent of GE’s market value in a year and forced its first dividend cut since the Great Depression.

Warren Buffett Says Economy Has ‘Fallen Off a Cliff’

Billionaire Warren Buffett, whose Berkshire Hathaway Inc. posted its worst results ever in 2008, said the economy “has fallen off a cliff” and that efforts to stimulate recovery may lead to inflation higher than the 1970s.

Marc Faber Says Government Actions Will Boost Stocks

Government spending will spur gains in the Standard & Poor’s 500 Index after it fell 56 percent from an October 2007 record, investor Marc Faber said.

AIG Told U.S. Failure May Cripple Banks, Money Funds

American International Group Inc. appealed for its fourth U.S. rescue by telling regulators the company’s collapse could cripple money-market funds, force European banks to raise capital, cause competing life insurers to fail and wipe out the taxpayers’ stake in the firm.

MAIN ECONOMIC RELEASES China’s February Consumer Prices Seen Falling 1% From Year Ago China’s February Producer Prices Seen Falling 4.4% Vs Year Ago China’s Money Supply, Bank Lending for February May Be Released Japan’s Leading Index Seen Falling to 77.4 in January From 80 Australian February Job Advertisements Report From ANZ Bank Australian February Business Confidence Index From NAB Bank Philippines Exports Report for February Is Due to Be Released

MAIN ANALYST UPGRADES/DOWNGRADES *HON HAI PRECISION CUT TO ‘NEUTRAL’ AT CREDIT SUISSE *TAKEDA CUT TO ‘NEUTRAL’ AT DAIWA *MARUBENI CORP. RAISED TO ‘OUTPERFORM’ AT CREDIT SUISSE *COSCO PACIFIC, CHINA MERCHANTS CUT TO ‘SELL’ AT DEUTSCHE BANK

ASIAN MARKETS

The Nikkei 225 futures contract due in March rose 5 points to 7,060. The Hang Seng March contract dropped 452 to 11,392. The S&P/ASX 200 Index futures due March fell 15 to 3,134 at 6:59 a.m. in Sydney.

U.S. Stocks Fall on Buffett, World Bank Warning About Economy

U.S. stocks fell, extending the worst weekly slump in the Standard & Poor’s 500 Index since November, after Warren Buffett said the economy “has fallen off a cliff” and the World Bank predicted a global contraction.

Treasuries Little Changed as Government Debt Auctions Loom

Treasuries were little changed, following their biggest weekly gain this year, as the U.S. prepares to sell $63 billion in notes and bonds.

Yen Falls Versus Dollar as Japan’s Current-Account Gap Balloons

The yen declined against the dollar and euro as Japan posted its first trade deficit since 1996, reducing the currency’s appeal as a refuge.

European Stocks Retreat for Third Day; HSBC, Lonmin Decline

Stocks in Europe declined for a third day after billionaire investor Warren Buffett said the economy has “fallen off a cliff” and concern mounted financial companies may post further losses.

European Government Notes Drop on Debt Sales, ECB Rate Comments

German two-year notes fell as governments prepared to sell at least 12 billion euros ($15 billion) of securities this week to fund their struggling economies and a central bank policy maker questioned the merit of further interest-rate reductions.

Oil Climbs to 2-Month High on Speculation OPEC Will Cut Output

Crude oil rose to a two-month high in New York on speculation the Organization of Petroleum Exporting Countries will decide to reduce output when ministers gather in Vienna on March 15.

Gold Falls, Halts 2-Day Rally as Demand Wanes; Silver Declines

Gold futures fell as some investors sold the precious metal following a two-session rally. Silver also declined.

HIGHLIGHTS FROM NEWSPAPERS

Pakistan Cricket Attack Planner Flees Police Raid, Times Says

A man suspected of masterminding the attack on the Sri Lankan cricket team in Pakistan last week fled before police raided his home in Punjab today, The Times of London reported.

Last Updated: March 9, 2009 17:07 EDT