IBT Staff Reporter

Sales at U.S. retailers unexpectedly fell in July and the number of workers filing new claims for jobless benefits rose last week, indicating the recession-hit economy faced a bumpy recovery.

A battle pitting Philippine troops against Muslim guerrillas on a remote southern island killed at least 53 people, the military said on Thursday, but analysts said the clash is unlikely to have sidelined the rebels.

A senior Iranian cleric seen as President Mahmoud Ahmadinejad's spiritual mentor said obeying the head of government was like obeying God, the moderate Etemad-e Melli newspaper said on Thursday.

Network equipment maker Cisco Systems Inc Chief Executive John Chambers said on Wednesday that the company's latest expansion in the online media and entertainment business will help improve relations between the music industry and Silicon Valley.

Pressure mounted on Taiwan President Ma Ying-jeou on Thursday to speed up operations to rescue hundreds of residents of remote mountainous villages buried or stranded in the aftermath of typhoon Morakot.

Nestle, the world's biggest food group, said on Thursday it had no plans for a big acquisition with cash from its Alcon stake sale, despite long-term speculation linking it with L'Oreal.

Thai prosecutors started appeal proceedings on Thursday against a court's rejection of a U.S. request for the extradition of suspected Russian arms dealer Viktor Bout.

China is undeterred by recent Sino-Australian tensions and is gearing up for a slew of deals down under in everything from iron ore to property, bankers and lawyers say.

The European Union said on Thursday it was extending its sanctions on Myanmar to cover members of the judiciary responsible for the verdict in the trial of opposition leader Aung San Suu Kyi.

Dr Pepper Snapple Group Inc reported a much higher-than-expected jump in quarterly profit on Thursday and raised its full-year outlook, citing lower costs for packaging and ingredients.

Retail Bumps, Foreclosure Record, Magna's

The seasonally adjusted jobless claimants volume increased by 24,000 persons in the UK in July, somewhat above the 20,000 rise foretasted by market analysts, although the unemployment rate remained steady at 9.4%.

The International Association of Machinists and Aerospace Workers said on Thursday that it had moved to seek a union election at Delta Air Lines Inc to resolve representation for 12,700 employees at the carrier and its Northwest subsidiary.

The U.S. Department of Energy's Information Administration will release its report on natural gas inventories. Analysts expect natural gas inventories gained 66 billion cubic feet last week, a larger than average increase. United Nations working groups are holding climate change talks from 10 to 14 August 2009 in Bonn, Germany.

Pirates probably hijacked a merchant ship which disappeared after sailing through the English Channel last month, its operator said on Wednesday.

After a decade of watching film production slowly abandon Hollywood, lured away by financial incentives first in Canada, then other U.S. states, California hopes to woo the movies back home.

Citigroup Inc energy trader Andrew Hall is proposing to modify his contract in an effort to avoid a confrontation with the Obama administration's pay czar, The Wall Street Journal reported on Thursday, citing sources familiar with the situation.

Oscar winner Denzel Washington might be making a foray into series television.

A luxury publishing company said on Wednesday it is putting together a Michael Jackson photo book that the pop star wanted to create before his sudden death about two months ago.

Actor Michael Douglas said on Wednesday that he and his family were

Walmart Stores Inc posted better-than-expected earnings on cost cuts, and forecast full year earnings that could beat Wall Street estimates, sending its shares up 1.6 percent.

China will make controlling greenhouse gas emissions an important part of its development plans, the government said, as pressure on the world's top emitter grows ahead of global talks on tackling climate change.

Kohl's Corp posted a lower quarterly profit that exceeded Wall Street estimates by a penny, and the department store chain issued a dismal outlook for the rest of the year, citing higher costs.

Australia's parliament rejected a plan for the world's most ambitious emissions trade regime as expected on Thursday, bringing the nation closer to a snap election and prolonging financial uncertainty for major emitters.

The euro hit a one-week high against the dollar on Thursday after the euro zone's two biggest economies posted surprise returns to growth in the second quarter, helping drag the dollar lower.

The global oil and gas sector has seen a flurry of consolidation in recent weeks, as companies look to snap up assets before an economic recovery sends prices higher.

Sales at U.S. retailers unexpectedly fell in July from June, a government report showed on Thursday, casting a shadow over an anticipated rebound in consumer spending in the third quarter.

Magna and its Russian partner Sberbank have reached an agreement with the management of General Motors to acquire a 55 percent stake in GM's European unit Opel, Magna Co-Chief Executive Siegfried Wolf told Reuters on Thursday.

U.S. home loans failed at a record pace in July despite ongoing federal and state programs to avoid foreclosures, which have severely strained housing and the economy.