MARKETS / FINANCE

Morgan Stanley , Citigroup and JPMorgan Chase were among banks that sold Goldman Sachs protection against the risk of a collapse of giant insurer American International Group , a source familiar with the matter said on Friday.

A Pontiac, Michigan, woman was charged with murder on Friday after chasing down and ramming another car in a fight over a man that started on Facebook, police said.

The Obama administration warned on Friday the U.S. economy had encountered strong headwinds and the country's fiscal challenge remained grim, but it lowered an estimate for the budget deficit this year.

General Electric delivered a shot of confidence to U.S. investors when it raised its dividend on Friday, pushing the S&P 500 through the key 1,100 level.

General Electric delivered a shot of confidence to U.S. investors when it raised its dividend on Friday, pushing the S&P 500 through the key 1,100 level.

Seven European banks are not strong enough to withstand another recession and would face a capital shortfall of 3.5 billion euros ($4.5 billion), far less than expected, stoking fears the keenly-awaited stress tests were too soft.

General Electric Co moved to raise its dividend by 20 percent on Friday, in a sign that the largest U.S. conglomerate has put the worst of the financial crisis behind it.

The Obama administration warned on Friday the U.S. economy had encountered strong headwinds and the country's fiscal challenge remained grave, but it lowered an estimate for the budget deficit this year.

Google's dominant position on the global online search market slipped slightly in the second quarter, as it retreated from the Chinese market, research firm Strategy Analytics said on Friday.

Stocks rose on Friday as a dividend hike by General Electric Co and solid earnings from companies including telecommunications provider Verizon Communications Inc boosted sentiment.

Seven of 91 European banks have failed stress tests and show an overall capital shortfall of 3.5 billion euros, the organizers of the tests said on Friday.

Stocks rose on Friday as solid margins from Verizon Communications Inc and a dividend hike by General Electric Co boosted sentiment.

Stocks rose on Friday as solid earnings from companies including telecommunications provider Verizon and a dividend hike by General Electric helped sentiment.

A federal judge approved on Friday a settlement of litigation brought by Intel Corp shareholders and designed to help the world's largest chipmaker avert future antitrust problems.

Stocks were little changed on Friday as investors digested results of European bank stress tests, but solid earnings from companies including telecommunications provider Verizon helped sentiment.

Ford Motor Co posted a stronger-than-expected quarterly profit of $2.6 billion and said it was on track for higher earnings and lower debt in 2011, sending its shares up 4 percent.

Europe's attempt to restore confidence in its banks comes to a head on Friday with widespread expectation that up to 10 lenders will fail the test and have to raise capital.

Oil prices slipped back from an 11-week high above $79 on Friday, falling on uncertainty over European bank stress test results even as companies began shutting in Gulf of Mexico production ahead of a tropical storm. The dollar's strength against the euro and a basket of currencies .DXY also added pressure.

France's top four banks passed the European banking stress test with an average Tier 1 ratio of 9.3 percent in 2011 under a worst-case scenario, compared with 9.9 percent at the end of 2009, the Bank of France said on Friday.

The United States and the NATO allies are preparing to disengage and soon withdraw from Afghanistan and even the most vocal advocates of the long-term commitment do not anticipate more than five years of active US and NATO involvement. All the local key players - in Kabul, Islamabad, and countless tribal and localized foci of power - are cognizant and are already maneuvering and posturing to deal with the new reality.

Seventeen big banks getting bailouts from taxpayers made ill-advised overpayments to executives in late 2008 and early 2009, but they can't be forced to pay them back, U.S. pay czar Kenneth Feinberg said on Friday.

Sterling is poised to build on its broad rally as investors speculate that fiscal and economic conditions in Britain will improve faster than in the euro zone or the United States. Technical factors are also working in the pound's favour, while lower implied volatility will help the UK currency higher.

The S&P 500 and Dow Industrials edged higher on Friday as another round of solid corporate earnings offset uncertainty ahead of European bank stress test results.

Galleon Group hedge fund founder Raj Rajaratnam is making an all-out legal assault to get the first wiretaps used in a widespread probe of insider trading on Wall Street thrown out, but legal experts doubt the defendant will succeed.

The recent news that Euro zone economy is slowly gaining strength has helped platinum and palladium prices show signs of recovery. According to reports platinum prices may rise as gradual economic recovery will lead to increased demand for the auto-catalyst metal, but some of the euphoria that lifted forecasts earlier this year has evaporated after a hefty correction in May.

Gold fell on Friday, giving up earlier gains, as caution hit financial markets ahead of the results of European bank stress tests, with renewed strength in the dollar helping pull the metal back from $1,200 an ounce. The results of stress tests are due at 1600 GMT.

The euro fell against the dollar on Friday as doubts grew that the stress tests of European banks won't reveal the true health of financial institutions. The Committee of European Banking Supervisors said losses on sovereign debt holdings would be applied only to banks' trading books, not their banking books.

The Dow and S&P 500 briefly turned higher while the Nasdaq pared losses in Friday morning trading, with Verizon results boosting telecommunications shares.

Two top ratings agencies said on Friday they might downgrade Hungary's sovereign debt after its prime minister snubbed the IMF and rejected austerity measures in favor of a pro-growth policy to woo voters.