UNITED STATES

FedEx Corp reported a larger quarterly loss on Wednesday and gave an outlook well below Wall Street estimates for the current period, citing the recession's impact on package volumes and rising fuel costs that will hit its bottom line.

So what happens after the stimulus and pull forwards? This is a situation we will one day be asking... as I wrote the other day the master plan seems to be for the government to give away money month after month

Stocks slipped to session lows mid-morning on Wednesday, weighed down by bank shares after Standard and Poor's cut ratings and outlooks on 22 U.S. banks and after a disappointing earnings forecast from bellwether FedEx Corp .

Watson Pharmaceuticals Inc said on Wednesday it will buy privately held Arrow Group for $1.75 billion, clinching a long-expected deal by the U.S. generic drugmaker to expand internationally.

Walt Disney Co is introducing $350 netbooks for children ahead of the holidays, even as other toy companies shy away from expensive items to appease recession-hit shoppers.

Oil fell below $70 a barrel on Wednesday, pressured by weaker stock markets, as investors awaited a U.S. inventory report expected to show supplies declined in the world's top consumer.

President Barack Obama will lay out on Wednesday his vision for reshaping U.S. financial regulation, aiming to tighten oversight of the largest firms whose excessive risk-taking triggered a global recession.

U.S. consumer prices edged up in May on higher gasoline prices, but fell over the past 12 months by the most since 1950, in a sign that inflation was no threat for now as the country fights a brutal recession.

The head of the World Trade Organisation is hopeful long-running trade talks can be wrapped up next year.

The euro zone's unadjusted external trade surplus rose in April as exports showed signs of stabilising on a monthly basis and fell less than imports, though shipments sank more than a quarter from a year earlier.

Spain is ready to take between three and five inmates from the U.S. military prison at Guantanamo Bay in Cuba, newspaper El Pais reported Wednesday, citing government officials.

Mexico's navy has seized more than a ton of cocaine stuffed inside frozen sharks, as drug gangs under military pressure go to greater lengths to conceal narcotics bound for the United States.

The presidents of Russia and China on Wednesday called for a diplomatic push to resolve tensions over the nuclear programs of Iran and North Korea after wide-ranging talks in Moscow.

Stock index futures pointed to a flat to lower open on Wednesday as key data for May tempered inflation concerns but was offset by a disappointing earnings outlook from package delivery company FedEx Corp .

U.S. President Barack Obama will sign a memorandum on Wednesday to extend healthcare and other benefits to unmarried domestic partners of federal workers, a White House official said on Tuesday.

The leaders of South Korea and the United States told North Korea to drop its atomic ambitions and stop threatening the region while media reports on Wednesday said Pyongyang was moving ahead with plans to launch a long-range missile.

U.S. consumer prices rose at a slower-than-expected pace in May despite higher gasoline costs, and fell over the past 12 months by the most since 1950, according to government data on Wednesday.

U.S. mortgage applications fell for a fourth consecutive week, with overall demand plunging to its lowest level in nearly seven months, data from an industry group showed on Wednesday.

The U.S. economy will not recover until the end of this year, and even then growth will remain meek and vulnerable to higher interest rates and commodity prices, economist Nouriel Roubini said on Tuesday.

New U.S. housing starts and permits surged in May from record lows, while wholesale prices were muted despite higher gasoline costs, indicating the economy was moving closer to the end of a deep recession.

FedEx Corp on Wednesday reported a larger fourth-quarter loss, due to charges at two units that have been hit by the recession, but gave a low outlook for the current quarter, citing the continued downturn and rising fuel prices.