MARKETS / FINANCE

A former client of UBS AG who cooperated in a U.S. probe of the Swiss bank's ties with wealthy Americans hiding money overseas was sentenced to one year house arrest and a fine on Wednesday for a multimillion-dollar tax evasion scheme.

Renegotiating bonuses to American International Group employees is a top priority, the Obama administration's pay czar said on Wednesday, adding he believes he can do so without losing key employees.

Renegotiating bonuses to American International Group employees is a top priority, the Obama administration's pay czar said on Wednesday, adding he believes he can do so without losing key employees.

More U.S. manufacturers are optimistic about the economy, but poor demand remains a top concern, according to a survey.

Sales of new U.S. homes unexpectedly tumbled in September, their first drop in six months, underscoring the hazards to an economic recovery even as businesses appeared to be stepping up investment.

Calpers, the nation's largest public pension fund, does not face moral hazard despite state guarantees of pension solvency, the funds chief investment officer said on CNBC on Wednesday, in comments responding to a Reuters report.

The Obama administration's pay czar said on Wednesday that renegotiating guaranteed bonus contracts at American International Group's AIG Financial Products unit was a top priority for him in 2010.

Correcting annual rate of September home sales in second paragraph

Sales of new U.S. homes unexpectedly tumbled in September, their first drop in six months, underscoring the hazards to an economic recovery that businesses appeared to be banking on.

Health insurer WellPoint Inc posted an 11 percent decline in third-quarter profit on Wednesday as layoffs among customers led to lower membership, but results crushed estimates on improvements in its business serving elderly and low-income Americans.

New orders for long-lasting U.S. manufactured goods rose 1 percent in September, meeting Wall Street expectations, Commerce Department data showed on Wednesday.

Sales of newly built U.S. single-family homes unexpectedly tumbled 3.6 percent in September in their first drop since March, but the inventory of new homes available at the end of the month shrank to the smallest in 27 years, government data showed on Wednesday.

American Airlines parent AMR Corp will eliminate up to 700 jobs as it downsizes its maintenance and engineering operations, the company said on Wednesday in a letter to employees.

The Treasury Department is in talks with GMAC Financial Services Inc about a possible third cash infusion to the company, an Obama administration official confirmed on Tuesday night.

Ford Motor Co chose China's Geely as preferred bidder for Volvo Cars while Magna said it still hoped to clinch a deal to buy a majority stake in Opel from GM after a board meeting on November 3

New orders for long-lasting U.S. manufactured goods rose 1 percent in September, Commerce Department data showed on Wednesday, suggesting that the economy's wobbling recovery from recession may be steadying.

Top officials from Magna and Opel expressed confidence on Wednesday that General Motors will go through with selling its European arm to Canada's Magna despite a second chance to review the deal.

New orders for long-lasting U.S. manufactured goods rose 1 percent in September, Commerce Department data showed on Wednesday, suggesting that the economy's wobbling recovery from recession may be steadying.

New orders for long-lasting U.S. manufactured goods rose 1 percent in September, meeting Wall Street expectations, Commerce Department data showed on Wednesday.

Drugmaker SciClone Pharmaceuticals Inc said it would cut about 17 percent of its U.S.-based jobs, mostly in research and development, following its decision to drop the development of its cancer drug earlier this month.

Top officials from Magna and Opel expressed confidence on Wednesday that General Motors will go through with selling its European arm to Canada's Magna despite a second chance to review the deal.

The Obama administration made gains on Tuesday in its push for U.S. financial reform, unveiling a landmark bill to tackle systemic risk in the economy and winning congressional committee approval for a measure to expose hedge funds to more government scrutiny.

Magna International thinks it can clinch a contract to buy a majority stake in carmaker Opel from General Motors even as GM's board weighs its final word, Magna's co-chief executive said.

World stocks slid on Wednesday on worries about the pace of economic recovery after a dip in U.S. consumer confidence, while the Australian dollar fell as inflation figures pared bets on an aggressive rate rise.

Kenneth Feinberg, the Treasury bailout program's special master for compensation, who cut total compensation for top earners at seven bailed-out firms last week, increased base salaries at the companies, the Wall Street Journal said, citing its own analysis of Treasury data.

Global consumer confidence is rebounding, and in the United States has risen for the first time since 2007, amid signs the world economy is picking up although spending is still restrained, a survey showed on Wednesday.

The U.S. Treasury and GMAC Financial Services are in advanced talks to prop up the lender with a third tranche of taxpayer-backed funding, the Wall Street Journal reported on Tuesday.

A former chief executive of Advanced Micro Devices became the biggest name to be linked to the Galleon Group insider-trading scandal, when the Wall Street Journal reported on Tuesday that he leaked information about the microprocessor maker in 2008 to a hedge fund manager.

While TD Ameritrade Holding Corp predicted a bold jump in trading by individuals next year, smaller online broker E*Trade Financial Corp , dealing with in-house loan losses, cautioned that much uncertainty still lies ahead.