UNITED STATES

Stock index futures pointed to a slightly higher open on Thursday after Wall Street's best day in eight weeks as initial jobless claims showed a small decline last week.

Time Warner Cable and Walt Disney Co ensured millions of U.S. cable customers can still watch some of their favorite TV programs while the companies kept working on a new programing deal after a midnight deadline passed.

Tough government follow-through on a freshly minted U.S. financial law will be crucial to ensure no bank or firm grows so large that its collapse could jeopardize the entire economy, Federal Reserve Chairman Ben Bernanke said on Thursday.

Recruiter Hays posted a halving of full-year pretax profit, beating forecasts, after growth in Asia helped it counter a tough first half which was battered by a difficult economic climate.

The euro edged up on Thursday after healthy results at Spanish and French bond auctions but investors cautiously awaited comments from European Central Bank President Jean-Claude Trichet. The ECB earlier left interest rates unchanged, as expected, at 1.0 percent. The decision had little impact on the euro. Trichet was due to hold a news conference at 1230 GMT.

World stocks hit a two-week high on Thursday and oil prices rose as optimism from strong U.S. and Chinese manufacturing data extended into a second day ahead of a euro zone interest rate decision and key U.S. jobs data.

Retailers posted better-than-expected sales in August as consumers sought out bargains during the key back-to-school selling season.

With a diplomatic push from U.S. President Barack Obama, Israeli and the Palestinian leaders will start direct peace talks on Thursday shadowed by scepticism on all sides and fresh violence in the volatile West Bank.

Oil steadied near $74 a barrel on Thursday, weighed by record high inventories in top consumer the United States and investor caution ahead of U.S. employment reports.

Australian Prime Minister Julia Gillard came within grasp of a return to power on Thursday after one of four kingmaker MPs backed her Labor Party's bid to form a minority government following last month's dead-heat elections.

DSG International , Europe's No. 2 electricals retailer, met forecasts for first-quarter sales with trade boosted by strong demand for TVs to watch the soccer World Cup and for Apple iPads.

Two struggling units of Lehman Brothers Holdings Inc , the bankrupt U.S. investment bank, need hundreds of millions of dollars in capital to stave off failure that could cost Lehman billions, court documents show.

DSG International , Europe's No. 2 electricals retailer, met forecasts for first-quarter sales with trade boosted by shopper spend on TVs to watch the soccer World Cup and on Apple iPads.

Time Warner Cable and Walt Disney Co ensured millions of U.S. cable customers can still watch some of their favorite TV programs while the companies kept working on a new programing deal after a midnight deadline passed.

House prices fell much faster than expected last month but further declines are likely to be modest, mortgage lender Nationwide said on Thursday.

Stock index futures pointed to a mostly lower open for U.S. shares on Thursday, giving back a little of the strong gains from the previous session, when they were boosted by strong manufacturing data from China and the United States.

World stocks hit a two-week high on Thursday and oil prices rose as optimism from strong U.S. and Chinese manufacturing data extended into a second day ahead of a euro zone interest rate decision and key U.S. jobs data.

Oil dipped on Thursday as investors turned their attention to upcoming U.S. employment reports, following gains of almost 3 percent a day earlier after positive manufacturing data lifted spirits across markets.

Costco Wholesale Corp , the largest U.S. warehouse club operator, reported a 7 percent rise in August sales at stores open at least a year, aided by surge in gasoline prices and foreign currency gains.

U.S. automaker General Motors Co plans to begin courting investors for its initial public offering immediately after the November 2 U.S. midterm congressional elections, two sources familiar with the plans said on Wednesday.

The dollar and yen recovered losses on Thursday as risk-taking sentiment was tempered ahead of a European Central Bank policy meeting later in the day and key U.S. jobs data on Friday.