Worldwide government leaders hoped their recent summit would calm investors even though they didn't really come up with anything specific. But it looks like a non starter. Asian markets opened down on Monday morning, showing disappointment that more didn't come out of the summit, European markets followed suit and U.S. stock futures are indicating a lower open as well. Also, news broke that Japan and Hong Kong slid into recession.

The value of both the Yen and the U.S dollar rose as investors looked for safety. Their actions show they were disappointed with the summit and with the fact that world leaders didn't take more concrete steps to avert a global recession.

What did the Group of 20 agree to do? They all agreed to act independently to be sure financial markets, products and participants are subject to supervision, but no coordinated plans were developed. The fact that the leadership of the U.S. is in flux for the next couple of months until President-elect Barack Obama is inaugurated in late January didn't help matters. While he sent Representatives to the meeting only President George Bush attended.

MAJOR PAPERS:

• The Wall Street Journal reported that Toyota Motor Corporation (NYSE: TM) is set to revamp its manufacturing operations in the U.S. in response to rising gasoline prices that have led to a shift toward fuel-efficient models. Officials at the auto maker said key moves may include dropping plans to produce the Highlander car-SUV crossover vehicles in a Tupelo, Mississippi plant, instead producing the Prius at the plant.
• Tomorrow Apple Inc (NASDAQ: AAPL) is set to launch its second version of the iPhone but it also will be opening its APP Store to software developers--an online bazaar--with the intent of bringing more applications to the phone as it has with music via its iTunes stores. Apple's goal is to turn the iPhone into a gadget that more resembles a personal computer, the Wall Street Journal reported.

OTHER PAPERS:

• According to sources, the South China Morning Post reported that Wynn Resorts Limited (NASDAQ: WYNN) is considering a secondary listing in Hong Kong that would raise as much as $3B. The source said that the fund-raising plan has yet to be approved that that the company is a "long way" from a share sale and "might never do it."

WEB SITES:

• In an interview, Bloomberg reported that Former St. Louis Federal Reserve President William Poole said there is an increasing chance the U.S. may need to bail out "insolvent" Federal National Mortgage Association (NYSE: FNM), or Fannie Mae, and Federal Home Loan Mortgage Corporation (NYSE: FRE), or Freddie Mac. Poole said data provided show that the fair value of Fannie Mae's assets fell 66% to $12.2B in Q2, while Freddie Mac owed $5.2B more than its assets were worth during the quarter.

Will investors soon get over worries about losses from subprime mortgages? As Doug indicated this morning, the answer for now is "nope." Today overseas markets are definitely paying attention to renewed fears about credit markets. The Dow was down over 56 points yesterday and today, Asian market sectors including banking, brokerage and insurance took a plunge as well. Francis Lun with Hong Kong's Fulbright Securities told MarketWatch, "After the drop on Wall Street, people are wary about further write-downs related to subprime mortgages."

With earnings season just kicking off today with Alcoa's second quarter results after the close, should we also be bracing for worse-than-expected reports from banks and brokerages? Today hat's the sentiment in Hong Kong and other Asian markets, where the Hang Seng index fell 3.2% in overnight trading and the Nikkei lost 2.5%.

Asian regional markets were sitting on the same worries pressuring U.S. markets, according to David Cohen with Action Economics. He posited that most Asian indexes were under pressure "from the same forces weighing upon markets globally, hostage to oil prices, and fears of stagflation." This morning at least, investors are bracing for U.S. markets to get worse before they get better.

Alibaba more than doubled on its first day of trading in Hong Kong today. After the trading day ended, Alibaba took its place as Asia's second largest Internet company behind Yahoo! Japan. All in, Alibaba is now valued at over $23 billion.

With shareholders including Cisco Systems (NASDAQ: CSCO) and Yahoo Inc. (NASDAQ: YHOO), Alibaba joins other high-flying Asian IPOs in 2007. I wrote briefly yesterday about the PetroChina (NYSE: PTR) IPO, which after it saw its value triple, is now the world's first trillion dollar company.

Part of what makes the Alibaba IPO so interesting is the firm's growth prospects. China's largest Web trading site for companies predicts profit will almost triple this year on increased spending in the world's fastest growing major economy.

Markets in Asia took a beating as the Hong Kong Hang Seng fell 5%. Key China stocks moved down sharply. China Mobile (NYSE:CHL) fell 7%. China Petroleum (NYSE:SNP) fell over 10%.

The Shanghai Composite fell 2.5%.

Douglas A. McIntyre is an editor at 247wallst.com.

Las Vegas Sands (NYSE: LVS) volatility Elevated into Macao Resort Hotel opening. LVS opened the Venetian Macao Resort Hotel today. Sheldon Adelson, chairman & chief executive officer, said "it is no overstatement to say that the opening of Venetian Macao represents a massive paradigm shift for Macao and the future of tourism development in Asia." Goldman Sachs (NYSE: GS) says "the scale is enormous and the detail impressive." LVS over all option implied volatility of 44 is above its 26-week average of 39 according to Track Data, suggesting larger price fluctuations.

Ameristar Casinos (NASDAQ: ASCA) implied volatility Elevated at 43. ASCA, a Las Vegas based gaming and Entertainment Company, is recently down $0.55 to $28.39. ASCA has a market cap of $1.6 billion with long term debt of $878 million. ACSA over all option implied volatility of 43 is above its 26-week average of 37 according to Track Data, suggesting larger price risks.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Last week my fellow blogger Kevin Kersten pointed out some pretty compelling evidence that some insider information had been leaked regarding the News Corp. (NYSE: NWS) and Dow Jones & Co. (NYSE: DJ) deal, and now it looks like he hit the nail on the head. A husband-and-wife pair from Hong Kong are officially the first people to have charges brought against them for trading on insider information.

According to the charges that were made today, Kan King Wong and Charlotte Ka On Wong Leung, made millions off illegal trading of Dow Jones stock in the days leading up to the announced deal. All said and done it looks like the man and wife team were able to bank over $8 million in profit from the purchase of 415,000 shares of Dow Jones stock in the 2 weeks leading up to the announcement.

As the story unfolds I expect that these will not be the last charges that the SEC issues in their investigation. Let's not forget that there are still around 10,000 call options on Dow Jones that traded in the weeks before the deal was announced that still need to be accounted for. If you think that the $8 million profit this couple made on the stock purchases was impressive, I can assure you that the profits off the 10,000 suspicious call options that were traded will be much more impressive. Consider that each of the 10,000 contracts represents 100 shares of stock and we are talking about control over 1 million shares. We have definitely not heard the last out of this story just yet.

Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer.

If markets are efficient then Chan Chun Chuen must be the world's most mesmerizing fortune teller. The story behind Nina Wang's will has a plot that would make a fantastic movie.

Mr. Chan was the personal fortune teller for Hong Kong's wealthiest heiress, Nina Wang and according to France24, Wang -- who died recently of cancer -- left her $4.2 billion estate to Chan. To the best of my knowledge, he will be the world's wealthiest fortune teller if he wins the legal battle with Nina's father-in-law over the will.

And there's the rub: Wang, who had no children, inherited the fortune from her husband Teddy Wang who disappeared in 1990 after being kidnapped. Although his wife paid half of the $60 million ransom Teddy's captors demanded, his body was never found and he was declared dead nine years later.

Hong Kong, the archetype for the most free form of capitalism, has an after-effect of such rapid growth: Pollution. Hong Kong's air pollutant concentrations are now 200% above the norms set by the World Health Organization, according to The Economist.

Hong Kong has been attempting to blame China for its environment woes, but a more recent study shows the economic powerhouse's problems are self-inflicted. The cause is from the usual suspects -- cars, ships and coal-fired power plants.

Hong Kong has taken the first step in evaluating the causes for pollution by hiring more credible firms to do the work. Why? The answer is business. Hong Kong is becoming increasingly known as a less desirable place to work, leading to much higher salaries to attract talented workers. Unless the pay is big, experienced execs do not want to go there.

Business is now forcing Hong Kong to go green, expect this to happen in other areas of the world as well.

China's largest bank, the Industrial & Commercial Bank of China Ltd., has shown its planned date for its long-awaited IPO. The price will be determined on October 23 and it should debut for trading on October 27, assuming there are no major market changes. Its stock will initially only be listed in Hong Kong and Shanghai. This may make it hard for US and European retail investors and many US-only institutions to participate in what appears to be the world's biggest initial public offering ever.

ICBC hopes to raise up to an equivalent of $19 billion and if this amount is raised it would break the IPO record of $18.4 Billion raised in the 1998 IPO of Japan's mobile phone operator NTT DoCoMo.

Before any over-allotments over subscriber indications, ICBC plans to issue 13 billion A shares priced in Chinese currency in Shanghai and 35.39 billion H shares. The actual price range is not indicated, but that is equal to 14.8% of its share capital. The company has indicated that up to 16.7 percent of total capital could be raised if the subscriptions come in higher than expected. If these numbers are accurate on the base amount, it would put the overall equivalent market cap of "ICBC" at roughly $128 billion. That number may not be accurate because of share discrepancies, but there is over one month yet to figure out the comparative details.

PRIOR CAPITAL RAISED

"ICBC" already plans to sell IPO shares worth $3.5 billion to strategic investors from government investment agencies from Kuwait, Qatar and Singapore. It also received a commitment in June from China's social security fund to invest an equivalent of $2.25 billion in the bank. Another group of global financial powerhouses including Goldman Sachs, American Express and Allianz AG invested about $3.78 billion back in January, 2006. That totals over $9.5 billion raised so far in capital this year alone and not all of that may be on the prospectus by the actual IPO date. ICBC listed assets of 6.5 trillion Yuan ($800 billion) as of the end of 2005.