NEW YORK (Reuters) – U.S. stock index futures slightly pared gains on Wednesday after a gauge of private sector employment showed more jobs than expected were lost in September.

S&P 500 futures rose 3.4 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract online payday loans. Dow Jones industrial average futures gained 25 points and Nasdaq 100 futures added 5.25 points.

(Editing by Padraic Cassidy)

Stock futures up as Q3 nears end; jobs data, GDP eyed

PARIS &S212; The idea that France is a hotbed of worker militancy, hobbled by industrial action, is misplaced, according to Xavier Darcos, the country&S217;s labor minister.

Despite a recent string of escalating action by workers &S212; from strikes to so-called bossnappings, where employees took managers hostage, along with threats by workers to blow up plants &S212; the French are not particularly militant, he said during a wide-ranging interview.

&S220;There has been a significant &S216;deunionization,&S221;&S217; Mr. Darcos said. &S220;The labor unions have changed.&S221;

Comparative data from the U.S. Bureau of Labor Statistics show that union membership in France, at about 8 percent of salaried workers in 2003, is well below that of other economic powers, including Germany, where 23 percent of such workers are unionized, and the United States, where 12 percent are.

Further, France has been less affected by industrial action than a number of its peers, Mr. Darcos said.

According to the Organization for Economic Cooperation and Development, France lost an average 100 days a year to strikes per 1,000 workers from 2000 to 2004. That ranked it below Spain, Italy and Canada but still well above Germany, Britain and the United States.

While union membership is low, there is a tradition of strong labor activism here, which appears to be rooted in the national psyche, the construction of the modern state and the worker protections built into law, allowing unions often to slow restructuring through workers&S217; councils.

&S220;Why do Americans like rodeo?&S221; was Mr. Darcos&S217;s joking response when asked why the French appear to be wedded to strong workers&S217; rights. &S220;The French are very attached to a certain social model because it is a part of their history.&S221;

The main unions, he said, are &S220;conflictual&S221; but &S220;responsible&S221; and offer a &S220;counterview to liberalism.&S221;

&S220;We believe in liberalism,&S221; he said, &S220;in the sense that market law is good for the economy, but it isn&S217;t enough on its own. It isn&S217;t humane enough.&S221;

While French labor protection adds to security &S212; making layoffs difficult &S212; it may also generate stress in the workplace, experts say instant payday loans. Many employees seem to be holding on to jobs for which they feel ill-equipped or where companies don&S217;t want them.

The economic crisis, restructuring and outsourcing have only added to the insecurity.

&S220;Stress is a problem all rich, developed countries are facing,&S221; Mr. Darcos said. &S220;The U.S. faces it like France.&S221;

Still, he admitted that companies like France T&>33;l&>33;com &S212; with its string of highly publicized suicides &S212; may have underestimated the human dimension of restructuring.

&S220;We are in a transforming economy,&S221; he said, &S220;and the evaluation tools used are a bit of date.&S221;

Nonetheless, a job, even a highly stressful one, is better than unemployment, he said.

&S220;For us, unemployment is the absolute failure,&S221; Mr. Darcos said. &S220;We prefer to have people who don&S217;t feel totally happy at work, or to work part-time, rather than people being unemployed.&S221;

The unemployment rate in France stood at 9.8 percent in July, up two percentage points from a year earlier. It probably would have been even higher without government programs to subsidize keeping workers in the auto industry and others on the payroll, at least part time.

What of the controversial 35-hour work week law, which was enacted in 1998? President Nicolas Sarkozy proclaimed its death in 2008, but in reality he merely softened its constraints by moving to eliminate taxes paid by employees and employers on overtime.

Despite the law, E.U. data show that last year the French worked a 41-hour week on average, putting the country 13th among the 27 nations in the bloc. (No.1 was Austria with 44 hours.)

There is no intention to dismantle the legal framework, Mr. Darcos confirmed. &S220;What we have done is to allow employees, who want to, to work more and differently.&S221;

Alice Pfeiffer contributed reporting.

Labor Minister Sees 'De-Unionization' in France

NEW YORK (Reuters) – U.S. stocks surged on Monday, as several merger deals bolstered investor confidence following three straight days of losses.

An increase in mergers and acquisitions is typically viewed as bullish, as it suggests companies are more optimistic about the economy and see values in the market.

"This is a very good sign," said Peter Kenny, managing director at Knight Equity Markets in Jersey City, New Jersey. "This is a very clear indicator that growth is anticipated in the market."

A number of companies announced large deals. Xerox (XRX.N) agreed to buy Affiliated Computer Services Inc (ACS.N) for &&6;6.4 billion, while Abbott Laboratories (ABT.N) said it would pay &&6;6.6 billion for Solvay&&9;s (SOLB.BR) drug unit.

Abbott shares climbed 3 percent to &&6;48.75 while Affiliated Computer&&9;s stock advanced 12.2 percent to &&6;53.00. In contrast, shares of Xerox sank 18 percent to &&6;7.36.

With Monday&&9;s gains, the Dow Jones industrial average is up about 16 percent in the quarter so far, which would make it the index&&9;s best such period since the fourth quarter of 1998.

The Xerox deal comes a week after another large buyout in the tech sector, when Dell (DELL.O) agreed to buy Perot Systems (PER.N) for about &&6;3.9 billion.

"The tech sector is going to be one of the first beneficiaries of an economic rebound," Kenny said. "The fact that these deals are in the tech sector is a further piece of the recovery puzzle."

The Dow Jones industrial average (.DJI) gained 137.78 points, or 1.43 percent, to 9,802.97. The Standard & Poor&&9;s 500 Index ( paydayloans.SPX) rose 18.03 points, or 1.73 percent, to 1,062.41. The Nasdaq Composite Index (.IXIC) climbed 45.21 points, or 2.16 percent, to 2,136.13.

The Jewish holiday of Yom Kippur observed on Monday and the end of the third quarter two days later could translate into thin volume and volatility as fund managers reposition their assets amid fewer market participants, investors said.

Dutch biotech firm Crucell (CRXL.O) said Johnson & Johnson (JNJ.N) bought 14.6 million new Crucell shares for over &&6;400 million as part of a flu vaccine development deal.

Crucell shares fell 6.1 percent to &&6;22.25 on the Nasdaq. [ID:nLS661406] But blue-chip J&J&&9;s stock was up 1.3 percent at &&6;61.43 on the New York Stock Exchange.

Dow Chemical (DOW.N) advanced 3.7 percent to &&6;26.07 after it said the Federal Trade Commission had cleared the way for its &&6;1.68 billion sale of Morton Salt to Germany&&9;s K+S AG (SDFG.DE) to go ahead.

Apple (AAPL.O) shares gained 2.1 percent to &&6;186.19 on Nasdaq after China Unicom (0762.HK) said it would sell Apple&&9;s iPhone in China, starting in October. [ID:nHKG249644] France Telecom&&9;s (FTE.PA) Orange also said it would sell the product later this year.

The Federal Reserve Bank of Chicago said its National Activity Index was minus 0.9 in August, but its three-month moving average of economic indicators improved for the seventh straight month, rising to its highest level since June 2008.

(Editing by Jan Paschal)

M&A activity lifts markets as Q3 nears close

SYDNEY &S212; The Chinese state-owned chemical firm Sinochem bid $2.5 billion on Monday for the Australian farm chemicals group Nufarm, looking to gain a global footprint in a deal that could again test investment ties between China and Australia.

The bid sent Nufarm shares up nearly 10 percent to 12.22 Australian dollars in morning trade, though still substantially below the offer price of 13 dollars, reflecting concerns that the deal still has many hurdles to clear, including due diligence and both shareholder and regulatory approvals.

The major regulatory risk is Australian foreign-investment approval, which has been difficult to predict, especially when state-owned Chinese firms seek to take control of local assets.

&S220;There could be issues, but I think on balance it should be ok,&S221; said Paul Xiradis, chief executive of the fund manager Ausbil Dexia, arguing that Nufarm did not pose the same national interest concerns as China&S217;s recent mining investments.

Australia&S217;s Foreign Investment Review Board has stymied at least two major Chinese investments in Australia this year, both involving local companies that own large mineral deposits.

In contrast, Nufarm is in the manufacturing industry where the foreign investment regime has generally been more liberal.

&S220;It should be quite a do-able transaction from the FIRB&S217;s point of view,&S221; Mr. Xiradis said, referring to the review board.

The main attraction for Sinochem is Nufarm&S217;s global distribution network, which includes businesses in Asia, South America and Europe, analysts say.

Bank of America Merrill Lynch had speculated that an offer between 14 to 16 dollars a share would be accepted by the board.

&S220;Whether it succeeds at that price, it&S217;s hard to say, but I don&S217;t think there&S217;s going to be too many counteroffers payday loans. It has been known that Nufarm is potentially up for sale and no one else has come to the party at this point,&S221; Mr. Xiradis said. Ausbil owns Nufarm shares but declined to divulge the holding.

Nufarm reported a 2.6 percent drop in net profit on Monday and flagged a challenging operating environment in the current year. That cautious outlook could be part of the reason for the lower-than-expected bid, analysts said.

Resource-hungry China has been looking to buy Australian mining companies, including a $2.9 billion bid by state-owned Yanzhou Coal Mining Co for Felix Resource. So far this year, Chinese companies have invested about $5 billion in Australian companies.

Last month, China&S217;s biggest steelmaker, Baosteel, agreed to buy a 15 percent stake in iron ore explorer Aquila Resources for $240 million.

China is Australia&S217;s biggest export market, with two-way trade worth $53 billion last year.

Nufarm said there was still no certainty a deal would proceed, despite its support for the heads of agreement.

It is the second time Nufarm has received an approach from a Chinese firm in two years. In 2007, China National Chemical Corp., China&S217;s leading chemical producer, led a 3 billion dollar approach with the U.S. private equity firms Blackstone Group and Fox Paine Management, but they did not make a formal offer.

Nufarm is being advised by UBS, while the Royal Bank of Scotland is advising Sinochem.

Reuters

Sinochem Makes $2.5 Billion Bid for Australian Chemicals Group

ALTHOUGH cause-related marketing usually entails a company selecting a nonprofit in need of money and exposure, when it comes to Dawn dishwashing liquid, it was not the brand that chose the charity but the other way around.

In 1978, Alice Berkner, founder of the International Bird Rescue Research Center, which helps birds harmed by oil spills, secured a small grant from Chevron to test all major dish soaps for cleaning birds.

&S220;The one that worked better than anything else was Dawn,&S221; Jay Holcomb, executive director of the group, said in a telephone interview from California, where the center operates outside San Francisco and Los Angeles. &S220;It cut the oil faster than anything else.&S221;

The organization informed Dawn&S217;s parent company, Procter &&8; Gamble, which initially ignored requests to donate cases of the product, then finally agreed to do so in 1988, according to Mr. Holcomb. (P.&&8; G. said in a statement that because Dawn had made its debut only in 1973, &S220;In these early stages it was important for Dawn to solidify its fundamentals before pursuing opportunities the brand felt passionate about.&S221;)

In 1989, during the Exxon Valdez spill, volunteers used Dawn on crude-covered birds, and the brand figured prominently in media accounts of the disaster, as it has in animal-rescue coverage since. In recent years, Dawn also has donated as much as $100,000 annually.

Now Dawn is championing animal-rescue efforts in a television spot &<51; by Kaplan Thaler Group, New York, part of the Publicis Groupe &<51; that shows a baby duck, penguin and seal being washed in sudsy tubs. There is no voiceover, just the song &S220;Wash Away&S221; by Joe Purdy, and text stating that Dawn helped save thousands of animals caught in oil spills. Lastly, it reveals that the company will donate $1 to wildlife groups each time a consumer buys a bottle of Dawn and visits a Web site.

Dawn has highlighted wildlife in advertising campaigns intermittently since 2002 but never tried so actively to engage consumers. For Dawn to make a donation, consumers must go to dawnsaveswildlife.com &<51; which features the bird rescue group and another beneficiary, the Marine Mammal Center &<51; and enter a sequence of numbers printed on the back of bottles. So far, more than $89,000 has been raised.

A Facebook page, Everyday Wildlife Champions, features volunteering opportunities and has more than 14,000 fans. Dawn also chose a spokeswoman, the actress Minnie Driver, who has appeared &<51; with penguins &<51; on &S220;The View&S221; and the &S220;Today&S221; show. Dawn is the leading American dish soap brand, with 36 percent of the category, according to Information Resources, a market research firm whose data does not include Wal-Mart Stores. Revenue for dishwashing liquid in the 52 weeks that ended Sept. 6 totaled $623 million, a 5 percent increase over the previous year, owing perhaps to the recession driving more people to eat at home.

The contest between Dawn and Palmolive, the Colgate-Palmolive brand whose original formula ranks second, historically has been one of power versus mildness, with Palmolive saying how gentle it is on hands &<51; in the iconic 1970s television spots a manicurist, Madge, had clients soak their hands in it &<51; and Dawn asserting that it powers through grease payday loans for bad credit. Both brands secondarily claim to beat their rival at its own game, with Palmolive promoting its efficacy and Dawn its mildness.

For Dawn, sullied birds help with that secondary claim.

&S220;Some of our competitors have owned mildness, but Dawn has proved also to be gentle on hands, and this commercial demonstrates that in a different way,&S221; said Susan Baba, a P.&&8; G. spokeswoman. &S220;This is really a great way of highlighting our messaging of being tough on grease but gentle on hands.&S221;

Linda Kaplan Thaler, chief executive of Kaplan Thaler Group, said the Web site and Facebook group were inspired not by an advertising campaign but by a political one.

&S220;Instead of a getting a few people to contribute a lot of money, the Obama campaign got a lot of people to give a little, and kept telling them they were stewards for their country,&S221; she said. &S220;People don&S217;t want to be lectured to; they want to really participate.&S221;

Not all participation in the Dawn campaign has been positive, however: several comments on Facebook &<51; and on YouTube, where the commercial is posted &<51; have noted that Procter &&8; Gamble conducts tests on animals.

&S220;Go ahead and support animal testing!&S221; wrote Janina Miranda Laffitte on Facebook. &S220;Dawn donates $1.00 yes but they test their products on many animals to this day!&S221;

Kathy Guillermo, vice president for laboratory investigations at People for the Ethical Treatment of Animals, said, &S220;The bottom line is that Procter &&8; Gamble is really good in some ways and bad in others.&S221;

The company severed ties with an animal testing laboratory after a PETA investigation revealed that dogs had been mistreated, and it says that it has invested more than $250 million developing alternative testing methods, but it has not declared it will cease animal testing. (Among the top 25 dish soaps, only Seventh Generation and Method do not test on animals, according to a &S220;cruelty-free company&S221; compilation on PETA&S217;s Web site.)

Asked if Dawn itself is tested on animals, Ms. Baba of P.&&8; G. responded in an e-mail message, &S220;We do not test finished products, which includes Dawn, on animals,&S221; adding that &S220;at some time over the 30-year history of Dawn, an ingredient may have been tested on an animal because the law required it or there was no alternative test at that time.&S221;

Ms. Guillermo of PETA said of the current Dawn campaign: &S220;Anything a company does to help animals we applaud even if we have issues with their policies in their entirety. It sounds like they may have figured out the marketing advantage of helping &<51; but in any case they&S217;re helping.&S221;

Advertising: Tough on Crude Oil, Soft on Ducklings

NEW YORK (Reuters) – U.S. stock index futures edged higher on Friday ahead of key data expected to show a small gain in new orders for durable goods.

A pledge from world leaders at the Group of 20 nations summit to keep emergency economic supports in place until a robust recovery takes hold helped stem recent fears that government efforts to support financial markets would end anytime soon.

The U.S. durable goods data at 8:30 a.m. EDT is expected to show new orders rose 0.5 percent in August after surging 5.1 percent in July, a poll of 75 economists forecast.

The final Reuters/University of Michigan reading of consumer sentiment for September is expected at 9:55 a.m. A Reuters poll of economists showed the gauge is expected to rise to 70.3 from a reading of 65.7 in August.

U.S. new home sales data is due at 10 a.m. EDT. Economists look for sales increasing to an annual rate of 440,000 units in August from 433,000 in July, which was the highest in 10 months.

Following two days of losses, and with the U.S. dollar (.DXY) edging lower and crude oil prices ticking up, the stock market is set to move higher if economic data comes in better than expected, according to Peter Cardillo, chief market economist at Avalon Partners in New York.

S&P 500 futures rose 3.1 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 26 points and Nasdaq 100 futures added 1 free online credit report.5 points.

Shares of Research In Motion Ltd (RIMM.O)(RIM.TO) fell more than 11 percent in premarket trading after the BlackBerry maker reported second-quarter revenue on Thursday that missed estimates and gave a disappointing outlook.

Caterpillar Inc (CAT.N) edged up before the bell after Credit Suisse upgraded the shares to "outperform" and raised its price target to &&6;63 from &&6;40, citing Caterpillar&&9; opportunity to make structural changes to its cost base. The heavy machinery maker was the top drag on the Dow on Thursday.

Unilever NV (UNc.AS)(UN.N) agreed to pay &&6;1.87 billion for Sara Lee Corp&&9;s (SLE.N) personal care brands. Sara Lee said it is still looking to sell the rest of its household goods business and will launch a &&6;1 billion share buyback program.

The G20 rich and developing countries, holding a two-day summit in Pittsburgh, will aim to implement new rules by the end of 2012 to improve bank capital and discourage excessive leverage.

The world&&9;s central banks said Thursday they would scale back infusions of U.S. dollars into their banking systems.

U.S. stocks fell on Thursday on weak housing data and investor worries that the officials may curb economic stimulus efforts too soon.

(Editing by Padraic Cassidy)

Stock futures tick up ahead of durable goods data

LONDON (AFP) – London stocks retreated from previous gains on Wednesday while investors remained on tenterhooks before a US Federal Reserve interest rate call.

The FTSE 100 index of leading shares dropped 0.06 percent to 5,139.37 points.

Royal Bank of Scotland (RBS) was the most traded stock, seeing 164 million stocks switch owners, followed by telecom giant Vodafone which saw 134 million shares change hands.

Fashion label Burberry was the top blue-chip gainer, adding 25.9 pence -- or 5.43 percent -- to finish at 502.5, followed by Standard Chartered bank, which added 64 pence -- or 4.32 percent -- to end at 1544.

Shopping-centre owner Liberty International was under heavy selling pressure after announcing plans to sell shares for the second time in five months no fax payday loans. The company&&9;s shares slipped 57.0 pence -- or 10.1 percent -- to end at 507.

Real estate investment trust British Land was the second sharpest faller shedding 23.0 pence -- or 4.48 percent -- to close at 490.

Sterling edged higher against both the dollar and the euro.

The pound was worth 1.6391 dollars at 16:58 BST, up from 1.6359 at Tuesday&&9;s close, while it stood at 1.1120 euros, up from 1.1058 over the same period.

FTSE retreats from previous gains

WASHINGTON (Reuters) – The Federal Reserve on Wednesday said that the U.S. economy was in recovery after a severe downturn and decided to slow purchases of mortgage debt to extend that program&&9;s life until the end of next March.

The Fed, as widely expected, held overnight lending rates at close to zero percent and repeated its intention to keep rates exceptionally low for an extended period.

"Information received since the Federal Open Market Committee met in August suggests that economic activity has picked up following its severe downturn," the Fed said a statement.

The Fed said that it would gradually slow the pace of its purchases of mortgage-related debt in order to promote a smooth transition in markets, but reiterated it would keep its options open.

"The Committee will continue to evaluate the timing and overall amounts of its purchases of securities in light of the evolving economic outlook," it said.

The Fed doubled the size of its balance sheet to around &&6;2 trillion as it flooded financial markets with money during the crisis last year. It has maintained this support through a campaign to buy &&6;300 billion of longer-dated U.S. government bonds and &&6;1.45 trillion of mortgage-related debt in an effort to keep lending rates low allstate insurance.

The Fed opted in August to taper down the Treasury purchases by the end of October, and had been expected to opt for a similar gradual withdrawal for its mortgage debt buying, which initially had been scheduled to close at year-end.

The U.S. central bank must walk a delicate path between acknowledging the recovery evident in the economy, and assuring investors that it remains tuned to the risks of a double dip recession as policy stimulus fades next year.

This means exiting in time from aggressive steps aimed at boosting growth to avoid igniting inflation as the economy picks up steam, while not smothering the recovery in the process.

Recent data has pointed to turnarounds in manufacturing, housing markets and consumer sentiment, and many analysts expect strong growth in the third quarter after four quarters of contraction. However, with unemployment at a 26-year high of 9.7 percent, most analysts nevertheless expect consumer spending to remain weak and damp the recovery.

(Reporting by Alister Bull, Editing by Andrea Ricci)

Fed says U.S. recovery is underway

NEW YORK (Reuters) – U.S. stocks rose on Tuesday, as investors bet that the U.S. Federal Reserve will stick to its accommodative policy to foster the economic recovery, boosting growth-sensitive sectors such as financials, technology and industrials.

Signs that the U.S. Treasury&&9;s &&6;43 billion auction of new two-year notes met strong demand added to the positive tone.

Investors have scrutinized auction results closely this year, especially after worries surfaced back in May about the longevity of the United States&&9; prized AAA credit rating.

"People are putting some credibility in the fact that maybe the recession is behind us and the worst is over," said Dan McMahon, senior managing director of equity trading at Raymond James Financial Inc in New York. "Things seems to be trending in the right direction as far as the underlying economic data."

The Dow Jones industrial average (.DJI) rose 53.88 points, or 0.55 percent, to 9,832.74. The Standard & Poor&&9;s 500 Index (.SPX) climbed 7.28 points, or 0.68 percent, to 1,071.94. The Nasdaq Composite Index (.IXIC) gained 8.98 points, or 0 faxless cash advance.42 percent, to 2,147.02.

The U.S. dollar&&9;s slide to a one-year low against the euro helped propel global commodity prices higher, with U.S. front-month crude up 2.6 percent, or &&6;1.84, to settle at &&6;71.55 a barrel, while spot gold rose toward an 18-month high approaching &&6;1,020 an ounce.

The Federal Reserve began a two-day policy-setting meeting on Tuesday. Its policy statement is due on Wednesday around 2:15 p.m. (1815 GMT).

And with no change expected in interest rates, investors probably will focus on the bank&&9;s assessment of the economic outlook, particularly after Chairman Ben Bernanke said last week that the recession was "technically" over.

Among standouts, Citigroup (C.N) shares jumped 5.2 percent to &&6;4.66 following news that Singapore wealth fund GIC has cut its stake in the U.S. banking company in half.

The S&P 500 financial index (.GSPF) was up 2.2 percent.

(Editing by Jan Paschal)

Wall Street rises on recovery bets; Fed in focus

NEW YORK (Reuters) – The Dow industrials and the S&P 500 index fell on Monday as a decline in oil and other commodity prices hurt energy and materials stocks.

But the Nasdaq rose, buoyed by a broker&&9;s upgrade on the biotechnology sector.

Light crude futures fell more than 3 percent, settling below the &&6;70 a barrel, hurt by concerns about demand despite hopes for economic recovery. The Reuters-Jefferies CRB index of commodities (.CRB) tumbled 2.2 percent, its largest percentage drop in five weeks.

The dollar index (.DXY) rose 0.4 percent after three weeks of declines and further hurt commodity prices, as investors scaled back short positions before a Federal Reserve decision on interest rates this week.

Energy (.GSPE) and materials (.GSPM) ranked as the S&P 500&&9;s worst-performing sectors, with oil services company Halliburton Co (HAL.N) down 2 percent at &&6;27.60 and petroleum refiner Sunoco (SUN.N) down 1.7 percent at &&6;27.95, while lumber producer Weyerhaeuser Co (WY.N) fell 2.7 percent to &&6;38.59.

"The market has risen in the last several months, based on the idea of the reflation trade," said Chip Hanlon, referring to bets on rising hard asset prices as the economy recovers, coupled with easy access to money at low interest rates.

Hanlon, president of Delta Global Advisors Inc in Huntington Beach, California, said people can expect when stocks sell off that the U.S. dollar will rally, which "will inflict particular pain on raw materials."

The Dow Jones industrial average ( cash advance payday loan.DJI) dropped 44.67 points, or 0.46 percent, to 9,775.53 and the Standard & Poor&&9;s 500 Index (.SPX) fell 3.60 points, or 0.34 percent, to 1,064.70. But the Nasdaq Composite Index (.IXIC) rose 4.55 points, or 0.21 percent, to 2,137.41.

Adding to the overall negative tone, the Conference Board&&9;s index of leading indicators posted a slightly weaker-than-expected gain in August.

Among the top drags on the blue-chip Dow Jones industrial average was Caterpillar (CAT.N), down 1.8 percent at &&6;52.47 after it said dealer sales of its heavy machinery, engines and turbines fell 48 percent in August, though many markets showed signs of stabilization.

The Nasdaq rose slightly after Robert W. Baird upgraded Celgene Corp (CELG.O), pushing the stock up 5.2 percent to &&6;55.28. The AMEX Biotech index (.BTK) gained 0.8 percent.

Computer maker Dell Inc (DELL.O) announced a &&6;3.9 billion proposal to take over Perot Systems Corp (PER.N). Perot soared 65.1 percent to &&6;29.56, while Dell&&9;s stock slid 4 percent to &&6;16.02.

Through Friday, the benchmark S&P 500 had risen 58 percent off a 12-year closing low in early March, partly because of strong earnings and optimism that an economic recovery is gaining strength. Investors&&9; appetite for riskier assets had reduced the dollar&&9;s safe-haven appeal.

(Editing by Jan Paschal)

Dow, S&P slip with commodities; Nasdaq up on biotech

WASHINGTON/BERLIN (Reuters) – U.S. President Barack Obama said on Sunday he would push world leaders this week for a reshaping of the global economy in response to the deepest financial crisis in decades.

In Europe, officials kept up pressure for a deal to curb bankers&&9; pay and bonuses at a two-day summit of leaders from the Group of 20 countries which begins on Thursday.

The summit will be held in the former steelmaking center of Pittsburgh, Pennsylvania, marking the third time in less than a year that leaders of countries accounting for about 85 percent of the world economy will have met to coordinate their responses to the crisis.

Obama said the U.S. economy was recovering, even if unemployment remained high, and now was the time to rebalance the global economy after decades of U.S. over-consumption.

"We can&&9;t go back to the era where the Chinese or the Germans or other countries just are selling everything to us, we&&9;re taking out a bunch of credit card debt or home equity loans, but we&&9;re not selling anything to them," Obama said in an interview with CNN television.

For years before the financial crisis erupted in 2007, economists had warned of the dangers of imbalances in the global economy -- namely huge trade surpluses and currency reserves built up by exporters like China, and similarly big deficits in the United States and other economies.

With U.S. consumers now holding back on spending after house prices plunged and as unemployment climbs, Washington wants other countries to become engines of growth.

"That&&9;s part of what the G20 meeting in Pittsburgh is going to be about, making sure that there&&9;s a more balanced economy," Obama told CNN.

China has long been the target of calls from the West to get its massive population to spend more. It may be reluctant to offer a significant change in economic policy when Chinese President Hu Jintao meets Obama this week.

The Wall Street Journal reported that a U.S. proposal to the rest of the G20 group foresaw a new global economic framework under which the United States would save more and cut its budget deficit, China would rely less on exports and Europe would make structural changes, possibly in areas such as labor law, to make itself more attractive to investment.

China was reluctant about the plan but Washington was bringing Beijing along by supporting its call for more say for developing countries at the International Monetary Fund, the newspaper said on its website.

G20 countries have not decided how detailed to make their pledges to change their economies and there would be no specific sanctions for those falling short, the report said.

Some economists have worried that a trade dispute over new U.S. import duties on Chinese tires could make it hard for leaders to renew their pledges to avoid protectionism, let alone discuss a major rethink of the world economy.

Nonetheless, calls for a new equilibrium are growing.

"We need to have rebalancing of growth and increase in consumption in the emerging markets to have enough growth in the short term," International Monetary Fund chief Dominique Strauss-Kahn told the Financial Times Low fee payday loans.

In Pittsburgh, the first of several expected anti-G20 protest marches took place with hundreds of demonstrators demanding governments create more jobs by spending more money on public works.

"(This) is a jobless recovery and there is the prospect of a permanent high unemployment economy." said Larry Holmes, of protest organizers Bail Out the People Movement.

Bigger protests are expected on Thursday and Friday.

EUROPE PRESSES ON BONUSES

European officials renewed calls on the summit to curb bonuses paid to bankers. Massive payouts linked to risky investments are widely seen as a factor in the credit crisis.

German Finance Minister Peer Steinbrueck said he supported a Dutch proposal to limit banking executives&&9; bonuses to the level of their fixed annual salary, the kind of idea that U.S. officials, mindful of Wall Street&&9;s concerns, oppose.

German Chancellor Angela Merkel, who is seeking re-election next weekend, said on Saturday she was "thoroughly optimistic" that a deal could be done on reforming financial markets.

French President Nicolas Sarkozy has tempered his calls for bonus caps, possibly paving the way for a G20 deal tying payouts to bankers&&9; long-term performance, not quick bets.

Steinbrueck, a member of the center-left Social Democrats, said he would press G20 countries to examine the idea of a global tax on financial transactions to curb excesses.

A U.S. draft of the summit communique did not mention this plan, German magazine Der Spiegel said. But G20 sources told Reuters the idea would be discussed by leaders.

The European Union should impose limits on bankers&&9; bonuses even if the United States does not, European Commission President Jose Manuel Barroso said on Sunday.

The United States is keen to show Europe that it is taking steps to rein in excesses in financial markets.

But the pace of U.S. regulatory reform has been slow, hindered by opposition from a powerful banking lobby and the Obama administration&&9;s focus on healthcare reform.

Those delays could get longer still because the Senate&&9;s top legislator on financial regulation favors a more radical streamlining of bank supervisory agencies than the changes proposed by Obama.

The G20 leaders are due to discuss other issues in Pittsburgh, including climate change ahead of important United Nations negotiations on emissions levels in December.

The EU&&9;s Barroso will warn on Monday that the talks "are dangerously close to deadlock at the moment ... and the world cannot afford such a disastrous outcome," according to excerpts of a speech he will make in New York.

(Additional reporting by Michelle Nichols in Pittsburgh and Gregory Blachier and Anna Willard in Paris; Writing by William Schomberg in New York; Editing by Chris Wilson and Eric Walsh)

Obama wants G20 to rethink global economy

WASHINGTON (Reuters) – The Federal Reserve plans new rules on bank pay to curb the type of excessive risk-taking that sparked the global financial crisis and triggered international demands for action.

Public outrage at the stratospheric compensation of some bankers has boiled up to the level of the Group of 20 nations, whose leaders meet next week in Pittsburgh.

The United States, under pressure to act on pay at the G20 from France and Germany, has already said it aims to curb the culture of excessive risk-taking at the root of the crisis.

A Fed source said on Friday that guidelines would be proposed in the next few weeks and would apply to any employee able to take risks that could imperil an institution, not just the executives who have been the main target of popular ire.

The rules will be aimed at all firms the Fed regulates and be enforceable under its existing powers, said the source, who requested anonymity. The Fed oversees more than 5,000 bank holding companies and over 800 smaller state-chartered banks.

Massive losses inflicted by risky subprime mortgage bets destroyed some of the oldest names in U.S. finance and intensified a recession that has cost millions of jobs, putting both the banks and the regulators under scrutiny.

The Financial Stability Board, which answers to the G20 and will issue guidelines at the September 24-25 summit, said on Tuesday that poorly capitalized banks should not be allowed to pay large bonuses.

MULTIPLE TRACKS

The Obama administration has already appointed a "pay czar" to oversee executive compensation at firms getting taxpayer aid, and has indicated it will take further steps.

"Properly designed compensation practices constitute an important measure in ensuring safety and soundness in our system," White House adviser Lawrence Summers said on Friday.

Industry officials said many financial firms had already reined in pay practices and warned a heavy-handed approach by the Fed could be harmful.

"What we&&9;re worried about is if they place undue restrictions on the sales people because that could weaken the company itself," said Scott Talbott, senior vice president for government affairs for the Financial Services Roundtable, the industry&&9;s lobbying group.

Some analysts said Washington was bowing to populist pressure. "I think that talking about curbing Wall Street pay is emotional and not rational," said Tom Sowanick, co-president and chief investment officer of Omnivest Group LLC.

The Fed&&9;s proposal would take a two-pronged approach bad credit payday advance. A top tier of the largest banks, numbering around 24, would get particularly close scrutiny, while all other lenders under the Fed&&9;s supervision would receive less-intensive treatment.

Larger firms would also be subject to a review that would compare their practices against rivals, and would be required to submit their pay policies to the Fed for its approval.

This would put the burden on the big firms to modify existing compensation practices, while leaving them with flexibility to customize compensation to best fit their needs.

Practices at smaller banks would be reviewed as part of existing regular bank exams, the Fed source said.

PLACING THE FOCUS ON THE LONG RUN

Goldman Sachs, which set aside &&6;11.3 billion in the first half of the year toward employee bonuses but which has also spoken out against excessive pay at firms that lost money, said excessive risk-taking should not be rewarded.

"We think it entirely appropriate that people are rewarded for performance, but compensation should correlate directly with the performance of the firm," said Goldman Sachs spokesman Lucas van Praag.

The Fed board has yet to vote on the proposal, but the timeline for the guidelines should advance in weeks, not months, the source said.

The proposed rules would then face a period of public comment before they could be made final. But the Fed plans to launch the review process for the large firms as soon as the proposal goes out, the source said.

The guidelines would not apply a one-size-fits-all prescription to cap pay at any specific level, the source added. Rather, the guiding principle would be to aim for a longer view of profits that squeezes out risk-taking that might lead just to short-term gains.

Officials are also discussing the possibility of "clawing back" compensation when it later becomes apparent excessive risks were taken.

It plans to outline ways to defer pay, for example by using restricted shares that take longer to vest, which would give bank management more time to judge if the revenues from a particular activity really lived up to expectations.

It will also point out the ability to weigh compensation according to the riskiness of the activity involved, as some already do to internally allocate capital.

(Additional reporting by Karey Wutkowski in Washington and Jennifer Ablan and Steve Eder in New York; Editing by James Dalgleish)

Fed eyes new bank pay rules to fight risk

NEW YORK (AFP) – Oil prices slipped Friday under pressure from a slightly stronger dollar and profit taking from recent gains.

New York&&9;s main contract, light sweet crude for October, dipped 43 cents to close at 72.07 dollars a barrel.

In London, Brent North Sea crude for November delivery dropped 23 cents to settle at 71.32 dollars.

"Oil prices have surrendered some recent gains with the US dollar finding some footing," said Mike Fitzpatrick of MF Global,

The New York futures contract remained above 72 dollars, at the higher end of the narrow trading range of the past three weeks.

The dollar&&9;s small appreciation weighed on dollar-priced oil, making it more expensive for buyers using weaker currencies.

However, the dollar&&9;s overall weakening trend -- it has sunk to a near-year low against the euro -- has been price-supportive of oil and other commodities.

Oil futures closed mainly flat Thursday despite positive US economic data as markets appeared to take a breather from recent gains driven by hopes of recovery from global recession.

"A raft of positive US economic data, from jobless claims to housing starts, continued to provide more evidence of a recovery at play, and should bode well for oil demand prospects in our view," said Amrita Sen of Barclays Capital free 3-in-1 credit report.

"In particular, diesel demand should be the main beneficiary from rising economic activity in the US, with an initial burst of goods restocking activity leading to a sharp improvement in diesel demand through the movement of more trucks and rail," he said.

Sen noted a "substantial" overhang in US diesel supplies that would take some time to erode.

After having closed slightly above 69 dollars a barrel a week ago, the New York contract hit 72.51 dollars Wednesday, thanks to weekly official data showing a large decrease in US crude reserves.

The surprise drop added to a growing outlook that the US economy, the world&&9;s largest energy consumer, is emerging from a deep recession that started in December 2007.

The decline was seen as an indication that US oil demand was improving but some analysts cautioned that stockpiles remained huge and prices had not returned to June highs.

Oil prices dip in profit taking

WASHINGTON (AP) &<51; Federal regulators are proposing new rules intended to stem conflicts of interest and provide more transparency for Wall Street&S217;s credit rating industry, which was widely faulted for its role in the subprime mortgage debacle and the financial crisis.

The changes proposed Thursday by the Securities and Exchange Commission could reshape an industry dominated by three firms: Standard &&8; Poor&S217;s, Moody&S217;s Investors Service and Fitch Ratings allied insurance.

S.E.C. commissioners were also proposing a ban on &S220;flash orders&S221; &<51; a practice that gives some traders a split-second advantage in buying or selling stocks. The practice has become a hot-button issue in recent weeks amid questions about transparency and fairness on Wall Street.

Proposals Ban ‘Flash’ Trading and Limit Rating Firms

SAN FRANCISCO (AP) &<51; The Oracle Corporation, the business software maker, said Wednesday that its quarterly profit rose 4 percent in the latest quarter, matching Wall Street&S217;s forecasts Wednesday, despite a drop in sales that revealed businesses are still being tightfisted about buying new software.

The sales figure was short of analysts&S217; expectations, and Oracle&S217;s shares fell 3 percent.

The company, based in Redwood Shores, Calif., reported after the market closed, reflect a familiar pattern that has emerged during the recession.

Oracle&S217;s sales of new software licenses fell 17 percent to $1 billion, while revenue from updates and technical support contracts climbed 6 percent to $3.1 billion. While many businesses are still reluctant to pay for new software, existing Oracle customers usually pay the company to do the follow-up on software they have already bought, which explains why the numbers sometimes go in different directions payday loan companies.

The rise in support work helped lift Oracle&S217;s net income for the quarter to $1.12 billion, or 22 cents a share, compared with $1.08 billion, or 21 cents a share, in the quarter a year ago.

Excluding one-time items, profit was 30 cents per share, matching the average estimate of analysts polled by Thomson Reuters.

Sales fell 5 percent to $5.05 billion, short of expectations for $5.25 billion.

The stock fell 71 cents, or 3.2 percent, to $21.42 in after-hours trading, likely on disappointment about the revenue shortfall. Shares had closed down 53 cents at $22.13 in regular trading.

Profit Rose at Oracle Despite a Drop in Sales