MARKETS / FINANCE

China's central bank has halted offshore yuan borrowing by domestic companies, official media reported, a move seen as an attempt to clamp down on hot money flows at a time when the authorities are still tightening policy to battle inflation.

Wall Street equity futures were lower on Tuesday as a last-minute congressional deal to raise the U.S. debt ceiling failed to assuage investor concerns that a credit downgrade could be avoided.

Stock index futures pointed to a lower opening on Wall Street on Tuesday, with futures for the S&P 500 down 0.5 percent, Dow Jones futures down 0.2 percent and Nasdaq 100 futures down 0.5 percent at 0919 GMT.

Sony Computer Entertainment said on Tuesday it was buying Sucker Punch Productions, the studio behind the inFamous franchise, as Sony Corp's unit tries to expand its portfolio of original video games.

World stocks hit a two-week low on Tuesday as markets' focus turned back to weak global growth prospects and the euro zone's debt troubles after a U.S. budget deal that will knock more than $2 trillion off public sector spending in coming years.

Metro , the world's No.4 retailer, said risks to its 2011 profit target had grown as the global economic recovery falters and shoppers fret about the European debt crisis and higher food prices.

A consortium led by Hong Kong tycoon Li Ka-shing's Cheung Kong Infrastructure Holdings <1038.HK> agreed to buy British utility Northumbrian Water Group for 2.41 billion pounds ($3.92 billion) in what could be the biggest takeover this year of a British-listed company.

South Korea spent more than a billion dollars in its first gold purchase in more than a decade, as uncertainty about global growth and sovereign debt push central banks around the world to diversify foreign reserves.

Asian shares fell on Tuesday as sluggish U.S. and global manufacturing data added to concerns about the health of the world economy, while a strengthening yen prompted speculation that Tokyo may intervene in the markets to curb the currency.

A consortium led by Hong Kong tycoon Li Ka-shing's Cheung Kong Infrastructure Holdings <1038.HK> has agreed to take over Northumbrian Water Group Plc in an all-cash deal which values the British utility at about 2.41 billion pounds ($3.92 billion).

Financial markets will be watching the European Central Bank on Thursday for any hints that recent signs of an economic slowdown and the unrelenting debt crisis have lowered the chances of another rate hike this year.

Pfizer Inc is expected to report lower quarterly earnings on Tuesday, hurt by competition from generic copies of its Lipitor cholesterol fighter, but investors will focus mainly what the company plans to do after Lipitor faces U.S. generics in November.

Japan kept markets on alert for possible yen-selling intervention on Tuesday, with officials saying the currency was too strong and its persistent strength would hurt an economy struggling to recover after the March 11 earthquake.

A Canadian teacher's pension fund and a New York hedge fund are pushing McGraw-Hill Cos Inc to boost its market value and might agitate for steps such as breaking off parts of the company.

A former expert-networking executive arrested as part of a government insider trading probe asked a New York judge on Monday to throw out wiretap evidence four weeks before his trial is to begin.

The S&P 500 fell for a sixth day on Monday as time runs out for the government to pass a deal to avoid default and the economy showed further signs of stalling.

Investors may have been relieved there was a Washington debt deal but they weren't impressed enough to celebrate on Monday -- and that may not bode well for stock prices for the rest of the year.

The Bank of Japan is expected to ease monetary policy this week to support a fragile economic recovery if the yen continues to rise quickly enough to trigger currency intervention, sources familiar with the central bank's thinking said.

Japanese Finance Minister Yoshihiko Noda signalled on Tuesday that Tokyo is in close touch with European and U.S. counterparts on the yen's strength, but declined to say if it would sell the yen to rein in its surge in value.

Communication software maker Synchronoss Technologies Inc posted better-than-expected quarterly results, helped by a 13 percent jump in revenue at its largest customer, AT&T Inc, and raised its full-year outlook.

The bill, which will cut federal spending by up to $2.4 trillion over 10 years, raises the debt ceiling, and now goes to the Senate, where that chamber is expected to vote on it, and pass it, by Tuesday, late afternoon. If all goes as planned, the bill will be on President Obama's desk, and his signature will avert a default.

Leaders from both, major political parties fanned-out across Capitol Hill Monday night to secure votes to pass the bipartisan debt deal bill, which would also raise the debt ceiling, and avert a U.S. Government default. The strongest opposition will occur in the House, but two-chamber passage is expected by 1 a.m. EDT Tuesday.

U.S. manufacturing grew at its slowest pace in two years in July as new orders contracted, casting doubt on expectations the faltering recovery would quickly regain steam.

The S&P 500 fell for a sixth day on Monday as time runs out for the government to pass a deal to avoid default and the economy showed further signs of stalling.

Wall Street fell for a sixth day on Monday on renewed angst about Washington's ability to reach a deal on raising the U.S. debt ceiling and following disappointing news from the manufacturing sector.

Chinese Internet portal Sohu.com Inc's shares fell more than 11 percent on Monday, as a 37 percent rise in quarterly net profit failed to impress investors amidst falling gross margins and higher operating expenses.

NYSE Euronext and Germany's Deutsche Boerse AG will lead the ultra-competitive U.S. options trading industry once their merger is complete, data from clearinghouse OCC showed on Monday.

The Congressional Budget Office's (CBO) estimate that the deal deal will cut the deficit by at least $2.1 trillion may not only save the debt deal -- it may save the nation's two, major political parties.

Euro group chairman Jean-Claude Juncker said on Monday it would be surprising if the rest of the world, and the euro zone in particular, avoided repercussions were the United States to lose its AAA credit rating.