(Reuters) - U.S. banking regulators meet on Tuesday to take the first steps toward implementing higher capital requirements set out in the Dodd-Frank financial overhaul law. The Federal Deposit Insurance Corp board will consider a proposal on how to set minimum capital requirements for banks under a provision in the new law that was added by Sen. Susan Collins of Maine with the strong backing of FDIC Chairman Sheila Bair.

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(Reuters) - Germany threw its weight on Tuesday behind a potential capital increase by the European Central Bank, saying it would react positively to such a move if the ECB deems it necessary. Euro zone central bank sources have told Reuters the ECB is considering requesting an increase in its capital from euro zone member states as a cushion against any potential losses from its bond buying program.

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(Reuters) - Yahoo Inc plans to lay off more than 600 employees as early as Tuesday, two sources familiar with the situation said on Monday. The cuts would represent between 4 percent and 5 percent of the Internet portal's overall staff, which totaled 14,100 at the end of September according to Yahoo's website. The layoffs come two years into Chief Executive Carol Bartz's tenure as Yahoo works to grow its revenue amid tough competition from Google Inc and Facebook.

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(Reuters) - HCP Inc (HCP.N) said on Monday it would buy most of the real estate assets of privately held nursing and assisted living firm HCR ManorCare Inc from Carlyle Group CYL.UL in a $6.1 billion sale and leaseback deal. The deal follows a spate of acquisitions in the seniors' housing and assisted living space as companies rush to deploy the cash pile they were sitting on during the downturn.

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(Reuters) - Standard & Poor's cut its outlook for Belgian debt to negative on Tuesday, flagging a new risk for money markets as investors weighed prospects of higher borrowing costs for one of the euro zone's most indebted states. If the country's inability to form a government threatened deficit- and debt-reduction goals, S&P said Belgium'S AA+ rating could be downgraded within six months.

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(Reuters) - Wall Street's rise continued on Monday, with the Nasdaq up for a ninth straight day as moves by China to rein in inflation weren't as aggressive as had been feared. The move suggested optimism that stocks would continue rallying through the rest of the year, even as some technical indicators suggested a near-term correction could be in the cards.

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(Reuters) - European shares rose for a sixth straight day on Monday, the longest winning streak in five months, on optimism for the economy and as China's decision not to raise interest rates boosted miners. The pan-European FTSEurofirst 300 .FTEU3 index rose 0.3 percent to 1,129.33 points, its highest close since September 2008. It was the index's longest winning run since July. "There's a bit more confidence about the cyclical outlook," Bill Dinning, head of strategy at Aegon Asset Management in Edinburgh, said.

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(Reuters) - Government bond prices in Europe fell on Monday, tracking a renewed slide in U.S. Treasuries, with a figures from the European Central Bank showing it had bought fewer bonds than some investors had anticipated. The European Central Bank has been buying debt issued by countries struggling to find buyers in the private markets. The central bank released the latest figures on its purchases on Monday, revealing it had bought roughly 2.67 billion euros worth of sovereign bonds over the past week.

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(Reuters) - Moody's warned on Monday that it could move a step closer to cutting the U.S. Aaa rating if President Barack Obama's tax and unemployment benefit package becomes law. The plan agreed to by President Barack Obama and Republican leaders last week could push up debt levels, increasing the likelihood of a negative outlook on the United States rating in the coming two years, the ratings agency said.

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(Reuters) - U.S. dollar losses deepened on Monday, with traders chalking up the currency's broad decline to a combination of firmer risk appetite, year-end positioning and some concerns about strained U.S. finances. The euro rose 1 percent to $1.3363 while higher oil prices and China's decision to hold off on interest rate hikes to fight inflation boosted the Australian dollar 0.9 percent to $0.9944. The dollar fell 0.4 percent to 83.59 yen.

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