MARKETS / FINANCE

Factory activity in Asia's main economies expanded last month, with India and South Korea growing at their fastest pace in around two years although China showed some signs of weakening.

American International Group Inc agreed to sell its Asian life insurance unit to Britain's Prudential Plc for about $35.5 billion, in a deal that would help the U.S. government get back billions of its bailout money, sources familiar with the matter said.

Shanda Interactive Entertainment , China's No. 2 online game company, said on Sunday its fourth-quarter profit rose 13 percent, as revenue rose to a record in China's booming online game market.

Shanda Games, China's No. 2 online game company, said on Sunday its fourth-quarter profit rose 44 percent, as revenue jumped to a record high in China's booming online game market.

(Corrects headline, first paragraph to show that results are for Shanda Games, not for parent company Shanda Interactive Entertainment. Removes reference in second paragraph to weakest result in three quarters.)

Britain's Prudential Plc plans to do a rights offering of about $20 billion to finance a $35.5 billion purchase of American International Group's Asian life insurance unit, a source familiar with the situation said on Sunday.

Shanda Interactive Entertainment , China's No. 2 online game company, said on Sunday its fourth-quarter profit rose 44 percent, as revenue jumped to a record high in China's booming online game market.

American International Group Inc's board approved the sale of its Asian life insurance business to Britain's Prudential Plc for $35.5 billion, a source familiar with the matter said on Sunday.

Payrolls could give the U.S. stock market some direction this week as investors comb through the key report on one of the economy's weakest areas.

The chief executives of HSBC Holdings , Europe's biggest bank, and Asia-focused rival Standard Chartered are set to give their bonuses to charity, newspapers reported on Sunday, following a high-profile row over the sums paid to bankers.

Calpers, the biggest U.S. public pension fund, will review its assumed actuarial rate of return of 7.75 percent and will make a recommendation to its board whether to lower it in December, a spokesman said on Sunday.

Friday's private sector credit data out of Australia gave the Aussie dollar a boost from 0.8880 to send it above the 89 cent level heading into the European session.

Icelandic negotiators may return home on Monday from London if no new meetings are called with British officials over the Icesave debt crisis, Icelandic Radio quoted a finance ministry spokesman as saying.

Greece may soon announce new steps to cut its budget deficit, a government minister said on Sunday, amid signs that Athens might be nearing a deal with European Union governments to ease the Greek debt crisis.

Prudential's bid to buy American International Group's Asian life unit is a bet against Asian stock markets as falling share prices across the region would make the alternative of listing the business in Hong Kong less attractive.

Michael Geoghegan, the chief executive of Europe's biggest bank HSBC Holdings , is set to give his bonus to charity, newspapers have reported, following a high-profile row over the sums paid to bankers.

Prudential , Britain's largest insurer, is in advanced talks to buy the Asian arm of American International Group in a deal worth about $35.5 billion, sources familiar with the matter said on Saturday.

A powerful earthquake that hit Chile on Saturday halted production at two oil refineries and two major mines in the world's top copper supplier, but exports of the metal will not be affected, officials said.

Officials from Britain and Iceland met on Saturday in a renewed attempt to reach a deal on repayment of more than $5 billion lost by overseas savers when Iceland's banks collapsed, Icelandic media reported.

In his annual letter to shareholders, legendary investor Warren Buffett outlined a few approaches to investing and business management that should be avoided.

A powerful earthquake that hit Chile on Saturday halted production at two oil refineries and two major mines in the world's top copper supplier, but exports of the metal will not be affected, officials said.

Germany, France and the Netherlands plan to buy Greek bonds to help Athens cope with a severe debt crisis, a German member of the European Parliament said on Saturday.

Warren Buffett defended his issuance of $10.6 billion of Berkshire Hathaway Inc stock as part of this month's acquisition of Burlington Northern Santa Fe Corp -- even as he admitted that issuing stock is as much fun as preparing for a colonoscopy.

Germany, France and the Netherlands plan to buy Greek bonds to help Athens cope with a severe debt crisis, a German member of the European Parliament told Greek television on Saturday.

Greece must take further measures to reduce the deficit or it will face sanctions, Eurogroup chairman Jean-Claude Juncker was quoted as saying by a Greek newspaper.

Chile's Codelco, the world's top copper producer, suspended operations at its El Teniente and Andina mines after a powerful quake hit Chile on Saturday, a company spokesman said.

Warren Buffett's Berkshire Hathaway Inc said fourth-quarter profit surged, helped by derivatives bets tied to global stock markets, though operating profit fell 40 percent as the weakened economy weighed on several businesses.

While I can't say I'm happy about the prospects for more deflation, I am happy about Bloomberg's recent interactive article U.S. Not Out of the Deflation Woods Just Yet (www.bloomberg.com, February 23, 2010).

Warren Buffett has said the hundreds of billions of dollars of taxpayer-funded bailouts of corporate America will eventually pay off.