(Reuters) - Oil giant BP was the biggest faller on Britain's blue-chip board on Thursday, as investors fretted that a U.S. government lawsuit may mean the cost of its oil spill will be far higher than predicted. Legal experts have said that BP's $40 billion estimate for the total cost of the oil spill -- hitherto largely accepted by financial analysts -- could double if the U.S. government managed to convince a court that BP had been grossly negligent.

• Read more

(Reuters) - Stocks edged higher on Wednesday as better-than-expected data on U.S. manufacturing and industrial activity outweighed worries about euro-zone debt sparked by a warning on Spain's credit rating. Investor concerns over a possible Moody's downgrade of Spain gave way as data showed manufacturing rebounded in New York state this month after falling sharply in November.

• Read more

(Reuters) - Engine checks on the world's largest airliner following last month's Qantas (QAN.AX) emergency have scuppered Airbus's (EAD.PA) hopes of meeting a target of delivering 20 A380 superjumbos this year. A spokesman said on Wednesday Airbus would deliver just one more aircraft, on top of 18 which have already left the assembly line, before the end of the month instead of a further two.

• Read more

(Reuters) - The United States will lead the rich world's economic recovery over the next two years while Japan and major European economies flounder by comparison, according to Reuters polls of more than 200 economists. Backed by strong retail sales that rose for the fifth straight month in November, the poll showed expectations U.S. consumers will step up demand, prompting a wave of upgraded forecasts for economic growth there.

• Read more

(Reuters) - U.S. carrier Delta Air Lines Inc (DAL.N) said it expects solid earnings growth in 2011, but its shares eased 1.4 percent as it pared its operating margin forecast for the current quarter, citing TransAtlantic softness. Delta said it expects operating margin of 6 percent to 7 percent for the fourth quarter, compared with its prior view of 6 percent to 8 percent.

• Read more

(Reuters) - Consumer prices barely rose in November as inflation remains muted amid an anemic recovery, more ammunition for the Federal Reserve to complete its government bond buying program to stimulate the economy. The Labor Department said Wednesday its Consumer Price Index nudged up 0.1 percent as energy prices rose by the smallest in five months, slowing from a 0.2 percent increase in October. Excluding food and energy, core CPI ticked up 0.1 percent as expected, after being flat for three straight months.

• Read more

(Reuters) - The dollar rose further against the euro and yen on Wednesday after a gauge of manufacturing in New York State rose more than expected in December. A separate report showed U.S. consumer prices rose slightly less than in November.

• Read more

(Reuters) - Industrial output rose 0.4 percent in November, its biggest gain since July and the latest sign of a firmer end to the year for the world's largest economy, a report showed on Wednesday. The increase was above a median forecast of 0.3 percent in a Reuters poll, and followed a downward revision of October's reading from flat to a drop of 0.2 percent.

• Read more

(Reuters) - Ratings agency Moody's warned Spain on Wednesday that its debt rating could be downgraded, pushing Spain back into the euro zone debt spotlight ahead of an EU leaders' summit starting on Thursday. Moody's said it was concerned about Spain's high debt funding needs, its heavily indebted banks and its regional finances, but said it did not expect Madrid to have to resort to an EU bailout like Greece and Ireland.

• Read more

(Reuters) - Ireland's main opposition party said on Wednesday it had no moral or legal obligation to honor all of its banks' debt as it prepared to vote against a controversial multi-billion euro EU/IMF bailout. The center-right Fine Gael party, which will likely lead a coalition government following an election next year, said it would seek to renegotiate the 85 billion euro ($113 billion) rescue package to ease the burden on the taxpayer.

• Read more