(Reuters) - AIG (AIG.N) posted slight gains in its main insurance businesses for the third quarter, but the bailed-out company lost more than $2 billion from asset sales linked to its restructuring. The results underscore the difficulties American International Group Inc faces as it tries to raise money to repay the $100 billion it still owes the U.S. government. AIG is trying to generate more income from its main insurance businesses but is regularly losing money on asset sales.

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(Reuters) - The Federal Reserve is expected to soon allow some healthy banks with strong capital levels to increase dividend payments, according to people familiar with the decision. The Fed's updated guidance is likely a few weeks away. It is expected to take a conservative approach in deciding which banks can increase dividends and assess each bank individually, according to a person familiar with the matter.

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(Reuters) - China rebuffed on Friday a U.S. plan to set limits for trade imbalances and Germany dubbed the Fed's money-printing policy "clueless," setting the stage for what could be a fractious G20 summit next week. Washington believes an undervalued yuan is a major cause of economic imbalances and has pressed Beijing, largely in vain, to let the currency rise more swiftly to reflect the strength of what is now the world's second-largest economy.

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(Reuters) - The Washington Post Co said its quarterly profit jumped more than three fold, helped by its education, television broadcasting and newspaper publishing divisions. However, the company said Kaplan, its educational segment that accounts for more than 60 percent of revenue, might be required to limit program offerings to ensure compliance with the planned regulations by the U.S. Department of Education.

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(Reuters) - U.S. regulators may get the ammunition they need to impose new market rules when they meet an advisory panel on Friday to discuss the May 6 plunge that briefly sent the equities market and related futures into a tailspin. The 'flash crash' advisory group, composed of former regulators, financial players and a top economist, will review a government report that partially blames the dramatic market fall on a single trade by a mutual fund.

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(Reuters) - HSBC (HSBA.L) said tougher European rules on pay and a UK bank tax were causing it harm and left it assessing whether to stay in London, as it reported profits so far this year "well ahead" of a year ago. It said the rate of profit growth slowed in the third quarter and there could be "some bumps in the road" for emerging markets growth, and said tougher European regulations on pay and a UK bank tax would have a damaging impact.

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(Reuters) - Canada's farm minister offered one reason that Canada blocked the proposed takeover of Potash Corp on Thursday, but markets will have to wait a month for all the details to emerge. Farm Minister Gerry Ritz, in comments his office later said were just speculation, argued that letting BHP Billiton buy the fertilizer giant would have offered Australia's farm sector too much of an advantage.

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(Reuters) - Stocks rose sharply on Thursday as risk appetite escalated following more monetary stimulus from the U.S. Federal Reserve in a move to boost a wilting economic recovery. The Fed's plan to buy $600 billion in Treasuries lifted risky assets, including commodity-related stocks that rose on expectations of worldwide demand. An index of commodity prices .CRB hit its highest level in more than two years.

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(Reuters) - New U.S. claims for jobless aid rose last week and a strong rebound in productivity in the third quarter showed employers wringing more output from current workers rather than hiring. U.S. business productivity rose at a stronger-than-expected 1.9 percent annual rate, the Labor Department said on Thursday, leading to a surprise dip in unit labor costs, a closely watched gauge of inflation pressure.

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(Reuters) - The Federal Reserve launched a fresh effort to support a struggling U.S. economy on Wednesday, committing to buy $600 billion in government bonds despite concerns the program could do more harm than good. The decision takes the Fed into largely uncharted waters and is aimed at further lowering borrowing costs for consumers and businesses still suffering in the aftermath of the worst recession since the Great Depression.

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