(Reuters) - Companies hired far fewer workers than expected in May and output in the manufacturing sector slowed to its lowest level since 2009, raising concerns that the U.S. recovery is running out of steam. Economists slashed their forecasts for Friday's closely watched U.S. payrolls report after private-sector job growth tumbled to just 38,000, its lowest level in eight months.

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(Reuters) - The pace of growth in the manufacturing sector slowed more than expected to its lowest level in more than 1-1/2 years, according to an industry report released on Wednesday. The Institute for Supply Management (ISM) said its index of national factory activity fell to 53.5 in May from 60.4 the month before. The reading missed economists' expectations for 57.7 and was the lowest level for the index since September 2009.

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(Reuters) - Greece neared a deal with the EU and IMF to avert a near-term default, pushing the euro to a one-month high on Wednesday, but a poor debt auction in Portugal and stalled Spanish wage talks highlighted the risks of contagion. Sources close to talks between Athens and inspectors from the European Commission, European Central Bank and International Monetary Fund (IMF), said they expected the latest review of Greece's fiscal progress to be completed by Friday.

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(Reuters) - General Motors Co (GM.N) on Wednesday said total vehicle sales in May fell slightly from a year ago as sales of its Chevrolet brand, including its top-selling Silverado pickup truck, fell 3.5 percent. The carmaker sold 221,192 vehicles in the month, down from 222,305 in May 2010 excluding four brands the company no longer sells. The figure fell short of Wall Street and industry forecasts, which had predicted total sales ranging from about 225,000 estimated by data firm TrueCar.com to 242,000 forecast by Jefferies.

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(Reuters) - Bubble Wrap maker Sealed Air Corp (SEE.N) said it will buy privately held cleaning products maker Diversey Holdings for $2.9 billion in cash and stock, to enter the $40 billion-plus chemical cleaning and hygiene industry. The deal will help Sealed Air grow beyond specialty packaging and give it access to Diversey's markets in over 60 countries in Europe, Asia Pacific, Brazil, Africa and other high-growth developing regions.

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(Reuters) - A settlement between a coalition of federal and state agencies and banks over foreclosure practices will take longer to hammer out than many expect, Bank of America Corp Chief Executive Brian Moynihan said on Wednesday. Moynihan, speaking at a Sanford Bernstein conference in New York, said talks with state attorneys general, the U.S. Department of Justice and other agencies are progressing, but the number of parties involved slows down the discussions.

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(Reuters) - Bombardier Inc (BBDb.TO) reported a stronger-than-expected rise in quarterly profit on Wednesday and announced a long-awaited order for its new C-Series commercial jetliner, propelling its stock higher. Bombardier said its aerospace unit has received firm orders worth $665 million for 10 C-Series jetliners from Sweden's Braathens Aviation, breaking a 16-month drought for the narrow-body commercial aircraft.

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(Reuters) - More than 150 economists back House of Representatives Speaker John Boehner's call to match any increase in the debt limit with spending cuts of equal size, according to a letter released by the Republican leader's office on Wednesday. The letter will give Boehner an important talking point as he and his fellow House Republicans meet with President Barack Obama at 10 a.m. to discuss the debt limit and other fiscal issues.

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(Reuters) - Two of top UBS AG (UBSN.VX) investment bankers, Cary Kochman and Jim Glerum, have left the firm to join Citigroup (C.N), yet another blow to the investment bank grappling with an exodus of senior dealmakers. Kochman, who joined UBS in 2004 and was named global co-head of mergers and acquisitions in March, will become head of North America M&A at Citi based in Chicago, Citi said in a statement on Wednesday.

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(Reuters) - Dollar General Corp (DG.N) missed Wall Street profit expectations after taking markdowns to clear slow-selling apparel out of its stores, sending shares down about 5 percent. Gross margins in the company's fiscal first quarter were lower than expected due to the need to cut prices on clothes, said ThinkEquity analyst Mark Mandel.

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