(Reuters) - U.S. stocks began the new year with a broad rally on Wednesday, sparked by a last-minute deal in Washington to avert the "fiscal cliff" of tax hikes and spending cuts that threatened to derail the economy. In 2013's first trading session, the S&P 500 was on target for its best percentage gain since November 19 and highest close since October 19.

• Read more

(Reuters) - President Barack Obama and congressional Republicans looked ahead on Wednesday toward the next round of even bigger budget fights after reaching a hard-fought "fiscal cliff" deal that narrowly averted potentially devastating tax hikes and spending cuts. The agreement, approved late on Tuesday by the Republican-led House of Representatives after a bitter political struggle, was a victory for Obama, who had won re-election on a promise to address budget woes in part by raising taxes on the wealthiest Americans.

• Read more

(Reuters) - SunPower Corp (SPWR.O) said it sold two large solar projects in California to a company controlled by Warren Buffett's Berkshire Hathaway Inc (BRKa.N), and would receive up to $2.5 billion in proceeds and related contracts. The Antelope Valley solar projects, which SunPower says is the world's largest photovoltaic power development, have been sold to a unit of MidAmerican Energy Holdings Co, a part of Berkshire Hathaway.

• Read more

(Reuters) - Manufacturing in the United States and China grew in December, suggesting the global economy was on course for moderate growth this year, even as the euro zone looked set to sink deeper into recession. U.S. factory activity rebounded last month after stumbling to a 40-month low in November, with new export orders growing for the first time since May. That mirrored growth in Chinese manufacturing reported earlier this week.

• Read more

(Reuters) - Car sales in France, Spain and Italy in 2012 fell to the lowest levels in years, with December registration data underscoring the challenges facing the broader European economy. Automakers are facing a sustained slump in the European car market as the euro zone debt crisis and government austerity measures sap consumer demand. "The new car market continues to decline - a trait which we anticipate will continue through the course of 2013," Credit Suisse analyst David Arnold said on Wednesday, adding European auto sales were unlikely to see growth in 2013.

• Read more

(Reuters) - Venture-backed companies made less cash for their backers last quarter compared with a year ago, capping a year in which the industry came under fire for not delivering hoped-for returns. Acquisitions of venture-backed companies totaled $3.52 billion in the fourth quarter, down 29 percent from $4.99 billion a year earlier, according to data from Thomson Reuters and the National Venture Capital Association.

• Read more

(Reuters) - U.S. stocks climbed on Tuesday, putting the S&P 500 on track for its best two-day run in a month, as investors gained confidence that "fiscal cliff" talks were progressing, even as significant differences separate Democrats and Republicans in Washington. The gains followed a rally on Monday that lifted the S&P 500 to its highest point in nearly two months. Investors remain confident that Washington will come to an agreement to avoid a series of spending cuts and tax hikes before the end of the year that could hurt economic growth.

• Read more

(Reuters) - With time running short before a Dec. 31 deadline, House of Representatives Speaker John Boehner will begin work on legislation that simply would extend current low income tax rates for all families with incomes below $1 million a year, according to an aide. Negotiations will continue with the White House on a broader tax and spending deal, the Boehner aide said. Boehner is presenting the plan to rank-and-file Republicans in a closed-door session.

• Read more

(Reuters) - The company whose AR-15 type Bushmaster rifle was used in the Newtown school massacre in Connecticut will be immediately put up for sale, its private equity owner Cerberus Capital Management LP said on Tuesday in response to investor concerns. The secretive private equity firm risked the ire of investors, which include some of the largest U.S. public pension funds, after its investment in Freedom Group Inc, owner of Bushmaster Firearms International that makes the rifle, came under public scrutiny.

• Read more

(Reuters) - Korea's Samsung Electronics on Tuesday said it would drop law suits aimed at banning the sale of Apple Inc. products in Europe just a day after scoring a victory in a battle in the United States with the maker of iPhones. Samsung and Apple, the world's top two smartphone makers, have been locked in patent disputes in at least 10 countries over the last 18 months since Apple sued Samsung, saying the Korean firm copied its best-selling iPhone and iPad.

• Read more