INTERNATIONAL BRIEFING

TECHNOLOGY

Nokia Challenges iPhone

Nokia, the world's biggest maker of mobile phones, unveiled a touch-screen handset with unlimited music downloads, challenging Apple's iPhone and iTunes.

The Nokia 5800 XpressMusic has 8 gigabytes of memory and is equipped with maps and satellite navigation, the Finnish company said.

The handset will sell in Europe this quarter for nearly $400 without subsidies or taxes.

The phone is compatible with Nokia's Comes With Music program, a competitor to iTunes, which starts Oct. 16 in Britain.

Customers will be able to download music from the catalogs of Warner Music Group, Sony BMG Music, Universal Music and EMI Group.

BANKING

UBS Expects Return to Profit

The Swiss bank UBS said it expects to turn "a small profit" in the third quarter, raising hopes that a dismal year of subprime-mortgage-related losses of $40 billion may soon be over.

Switzerland's largest bank has been one of Europe's hardest hit by the U.S. property-market meltdown, so the news was cheered by analysts and investors.

UBS shares rose 8.8 percent to $18.88, in Zurich trading. In U.S. trading, shares were up 6 percent, to $20.10.

RETAIL

Marks & Spencer Sales Drop

Britain's largest clothing retailer, Marks & Spencer Group, said sales suffered their worst quarterly fall in nearly a decade.

Same-store sales in Britain dropped 6.1 percent in the second quarter, the company reported.

To maintain profitability, the company is cutting planned spending for the year by about $400 million, Chairman Stuart Rose said.

Compiled from reports by Washington Post staff writers, the Associated Press and Bloomberg News.