IBT Staff Reporter

Arnold Shwarzenegger and Maria Shriver reunited on Saturday to celebrate the former California governor?s birthday in Beverly Hills, along with two of their children, Patrick and Christopher.

Honda Motor Co <7267.T> avoided an expected loss and raised its annual profit outlook by more than a third on Monday after it reported a 90 percent fall in quarterly operating profit, as it rebounded quickly from a severe parts shortage.

China pledged to keep to a prudent monetary policy for the rest of the year to combat inflation, which is stubbornly fixed near a three-year high.

China's central bank said it would keep monetary policy prudent for the rest of the year as inflation risks escalating from three-year highs if it takes its foot off the policy brakes.

Honda Motor Co <7267.T> posted a 90 percent fall in quarterly operating profit as a severe parts shortage stemming from the March 11 earthquake slashed output, but avoided an expected loss and raised its annual profit guidance by more than a third.

The auto industry could lead an economic recovery in the United States, according to a recent survey by audit, tax and advisory firm KPMG.

Japan's finance minister kept up verbal intervention against a rising yen even as a weak dollar won a reprieve on Monday as U.S. lawmakers reached an agreement to raise the debt ceiling and avoid a sovereign default.

Reinsurer Validus Holdings Ltd on Sunday urged target Transatlantic Holdings Inc to enter into discussions over its proposed takeover and said its offer is superior to one from Allied World Assurance Co .

Congressional leaders and President Obama reached a deal to raise the federal debt ceiling in an effort to avoid the first U.S. default but a series of crucial votes in both chambers of Congress remain before the President can sign it into law.

The current filming of the Dark Knight Rises in Pittsburgh has produced some amazing scenes and leaked information about the movie. Director Christopher Nolan's recent request for extras have appeared to all come together in a massive action scene shot over the weekend.

Sunday, in perhaps one of the most unforgettable press conferences you can ever see, Brandon Marshall revealed that he had been diagnosed earlier this year with borderline personality disorder (BPD). Brandon Marshall's documentary on BPD, "Borderline Beast" has just released a trailer.

"The leaders of both parties, in both chambers, have reached an agreement that will reduce the deficit and avoid default," President Obama announced Sunday night. The long-awaited and momentous agreement would cut 1 trillion dollars from a 10-year budget and raise the debt ceiling to beyond the 2012 elections.

HSBC Holdings Plc said on Sunday it will shed nearly half of its underperforming U.S. branch network, selling 195 branches to First Niagara Financial Group Inc for about $1 billion, and closing 13 others.

A weary-looking President Obama told reporters late Sunday that a deal had been reached between the leaders of the White House, Senate and House of Representatives to raise the federal debt ceiling and avoid the first U.S. default, although a series of votes by all members in Congress is needed to make the ceiling raise a reality.

According to a survey conducted by AptiQuant, Internet Explorer users scored less points than average and Firefox, Safari and Chrome browser users scored slightly more than the average.

President Barack Obama said on Sunday that Democrat and Republican leaders had reached an agreement to reduce the U.S. deficit and avoid default, but it was not clear if the spending cuts were deep enough to stave off a credit rating downgrade. The White House said the compromise would cut about $2.5 trillion from the deficit over the next 10 years but the reductions would not happen so quickly that they would drag on the fragile U.S. economy.

INTERNATIONAL BUSINESS TIMES meets with fashion designer and rising star Amy Matto

The tiny blue "Smurfs" battled big-name, big-budget "Cowboys & Aliens" to a surprising tie at the domestic weekend box office with each film ringing up an estimated $36.2 million in ticket sales, according to studio estimates on Sunday.

Controversial wide receiver Plaxico Burress signed with the New York Jets, the National Football League team said on Sunday.

The Atlanta Braves acquired speedy Gold Glove outfielder Michael Bourn in a five-player swap with the Houston Astros Sunday as Major League Baseball's non-waiver trade deadline closed in a flurry of deals.

It seemed like old times at the Rogers Center on Sunday with a packed house on its feet cheering for Roberto Alomar.

In contrast to Prince William and Kate Middleton's wedding, Phillips' nuptials were a low key private affair. Only the couples' closest friends and relatives received an invitation to the private ceremony.

Sticky heat was expected to smother much of the country's midsection in the coming days as hotter-than-usual temperatures continued to roast parts of the Midwest and South, forecasters said on Sunday.

Lawmakers were close to a last-ditch $3 trillion deal on Sunday to raise the U.S. borrowing limit and assure jittery financial markets that the United States will avoid a potentially catastrophic default.

A fistfight that began near a family unity festival headlined by funk musician George Clinton ended in gunfire, killing one and injuring three, Cleveland police said on Sunday. During the fight in a parking lot near the concert venue on Saturday, one teenager produced a handgun and shot four people. One victim, a 16-year-old male, died from a wound to the head Sunday morning, Cleveland police spokesman Sammy Morris said.

"Back to Black" by Amy Winehouse shot back to the top of the British albums chart Sunday, a week after the troubled singer died at the age of 27. Winehouse, famous for her distinctive soul songs and beehive hairdo, struggled with drinking and drug problems throughout much of her career. The cause of her death has not yet been determined as officials await results of toxicology tests.

Amazon.com Inc shares, just below their all-time high, could rise 10 percent to 25 percent if its capital spending translates to fast growth in its retailing, Kindle e-readers and cloud-computing businesses, Barron's said in its August 1 edition.

Hollywood icon Katharine Hepburn's former estate is up for sale for $28 million dollars. The 8,300-square-foot house is on one of three lots, and can be purchased separately for $18 million.

President Barack Obama told reporters Sunday that a deal has been reached to raise the federal debt ceiling and avoid the first U.S. default, the culmination of days of high-level, high-stakes political wrangling to attempt to resolve the nation's large deficits.