WASHINGTON - THE Federal Reserve on Friday said the US government is prepared to rescue any of the banks that underwent 'stress tests' and were deemed vulnerable if the recession worsened sharply.

The Fed, in outlining the tests' methodology, said the 19 companies that hold one-half of the loans in the US banking system won't be allowed to fail - even if they fared poorly on the stress tests.

SAO PAULO - BIG CHINESE automaker Chery is considering open a US$700 million factory in Brazil to tap into the country's growing market, and to learn more about building biofuel-capable engines, Brazil's Gazeta Mercantil daily reported Friday.

NEW YORK - STOCKS are higher after Ford Motor Co.'s better-than-expected results for the first quarter are fanning hopes for the overall economy.