MARKETS / FINANCE

Worst is over for world economy: Morgan Stanley CEO

The world economic downturn has passed its low point, with financial markets rebounding, Morgan Stanley CEO John Mack said on Friday.

Wall Street gains; Procter and other upgrades help

U.S. stocks rose on Friday as a brokerage upgrade of Procter & Gamble lifted shares of consumer staples companies, putting the market on track for a second week of gains.

UBS warns U.S. clients as tax amnesty deadline nears

UBS AG has formally warned wealthy American clients that secret Swiss accounts may be revealed to U.S. tax authorities after the Wednesday expiration of an amnesty program that could give them immunity from prosecution.

FDIC to consider ways to replenish deposit fund

U.S. bank regulators are considering tapping a line of credit with the U.S. Treasury Department and may explore other lesser-known options to replenish the dwindling fund that safeguards bank deposits.

Canada phone companies lose appeal, must pay rebate

Canadian telephone companies will have to write rebate checks to customers after the country's Supreme Court dismissed their appeals on how they should use extra cash they were ordered to collect by the telecommunications regulator.

Fed eyes wide-ranging bank pay rules to combat risk

The U.S. Federal Reserve plans new rules on bank pay to curb excessive risk-taking, which is blamed for sparking the global financial crisis and has triggered international demands for action.

UBS warns U.S. clients that IRS may get their data

U.S. clients of UBS AG have been warned by the bank that their undeclared income in Switzerland may be revealed to U.S. tax authorities, according to a letter obtained by Reuters on Friday.

Wall Street edges up as dollar, options expiry drag

U.S. stocks clung to slim gains in a choppy session on Friday as a stronger dollar and quarterly options expiration unsettled investors before the weekend.

FBI, DOJ investigating BofA's Merrill deal: report

U.S. authorities are conducting a criminal probe into Bank of America Corp's purchase of Merrill Lynch, the Charlotte Observer reported on Friday.

Flextronics sells stake in Aricent for $255 mln

Flextronics International Ltd said it had completed the sale of its stake in Aricent to Kohlberg Kravis Roberts & Co and CPP Investment Board for $255 million.

Majority of U.S. state jobless rates rose in August

Jobless rates rose in the majority of U.S. states in August, tracking national trends, but unemployment rates fell in the Midwest and South, a government report showed on Friday.

Lobby calls for EU scrutiny of Google book deal

EU regulators should look into the book settlement that Google reached with a group of U.S. writers and publishers last October because the deal will create a de facto monopoly, lobby group ICOMP said on Friday.

UBS warns U.S. clients IRS may get their data

American clients of UBS AG were formally warned by the bank that their undeclared income in Switzerland may be revealed to U.S. tax authorities, according to a letter obtained by Reuters on Friday.

Arena weight-loss trial disappoints investors

Arena Pharmaceuticals Inc's obesity drug disappointed investors in a second big clinical trial, sending shares plunging 33 percent on Friday from their highs on Thursday night.

Are we missing the flaws in this gold rally?

The stars have aligned for gold prices, leaving them just a short hop from record highs, but as bullion bugs celebrate, the rally appears to have flaws.

Ohio town struggles after package giant DHL leaves

Unemployment in this small U.S. town has quadrupled in the past 16 months, but worse is to come as thousands of unemployed workers run out of severance money and benefits.

Fed to propose wide-ranging bank pay rules

The U.S. Federal Reserve is close to proposing wide-ranging rules on bankers' pay that would apply to any employee able to take risks that could threaten the safety and soundness of the institution, a Fed source said on Friday.

Fed to screen U.S. bank pay policies: report

Pay policies for bank employees across the United States would require approval from the U.S. Federal Reserve as part of a proposal to curb risk-taking at financial institutions, The Wall Street Journal reported, citing people familiar with the matter.

Stock futures point to flat to higher open

U.S. stocks were poised for a flat to higher open on Friday as investors sought to determine whether a pullback is on the horizon after a 6-month rally and braced for options expiration.

Fed to screen bank pay policies: report

Pay policies for bank employees across the United States would require approval from the U.S. Federal Reserve as part of a proposal to curb risk-taking at financial institutions, The Wall Street Journal reported, citing people familiar with the matter.

Stock futures flat ahead of options expiration

U.S. stock index futures were little changed on Friday as investors sought to determine whether a pullback is on the horizon after a 6-month rally and braced for options expiration.

Swiss to hire more judges for UBS tax complaints

The Swiss government said it would appoint up to five temporary judges to deal with complaints arising from an agreement to hand over data on some UBS client accounts to U.S. authorities.

Ex-M.Stanley HK banker gets 7 years for insider trading

Former Morgan Stanley managing director Du Jun was sentenced to a maximum seven years in jail on Friday after a district court found him guilty of insider trading in the city's highest-profile case of its kind.

Citadel offered lenders debt for equity: report

Citadel Broadcasting Corp offered a deal to exchange a major part of its debt for equity to senior lenders owed $2 billion, including JPMorgan Chase & Co , GE Capital and ING Groep NV , the Wall Street Journal said, citing people familiar with the negotiations.

Stock futures signal dip; Palm in focus

U.S. stock index futures pointed to a slightly lower open on Wall Street on Friday, with futures for the S&P 500 down 0.2 percent, Dow Jones futures down 0.2 percent and Nasdaq 100 futures down 0.2 percent at 3:37 a.m. EDT.

Blockbuster CEO says financing should enable growth

A round of capital-raising and refinancing has alleviated a cash-flow crunch at DVD rental chain Blockbuster Inc, enabling it to revive plans to reposition itself and get back on a path for growth, Chief Executive Jim Keyes said.

Shirtmaker designs tie for your iPod

For bored commuters with already bulging pockets, a shirt design company has come up with the perfect solution to keep them entertained on the trip to work -- a commuter tie with a hidden iPod storage pocket.

Citigroup CEO says $100 million annual pay is too much

Citigroup Chief Executive Vikram Pandit said on Thursday that $100 million is too much for an employee to earn given the bank's circumstances.

Pay czar Feinberg hits the speaking circuit

The man who has the power to set pay on Wall Street is hitting the road for a series of speeches before he has even publicly testified before Congress.

SEC rules take aim at credit rating agencies

Credit agencies will have to disclose more of their ratings history, and creators of financial products will have to share data with all credit raters, under rules adopted by U.S. regulators on Thursday.