(Reuters) - Weakness in banks and commodity stocks dragged Britain's leading share index lower on Monday as the protracted search for a Greek bond deal and concerns about economic growth kept investors nervous. The FTSE 100 .FTSE index closed down 62.36 points, or 1.1 percent, at 5,671.09, extending Friday's falls and retreating further from Thursday's six-month closing high.

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(Reuters) - European leaders struggled to reconcile austerity with growth on Monday at a summit due to approve a permanent rescue fund for the euro zone and put finishing touches to a German-driven pact for stricter budget discipline. Officially, the half-day summit was meant to focus mainly on ways to revive growth and create jobs at a time when governments across Europe are having to cut public spending and raise taxes to tackle mountains of debt.

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(Reuters) - Consumer spending was flat in December as households took advantage of the largest rise in income in nine months to boost their savings, setting the tone for a slowdown in demand early in 2012. It was the weakest reading on spending since June, the Commerce Department said on Monday. Economists had expected consumer spending, which account for more than two-thirds of U.S. economic activity to nudge up 0.1 percent, the same as in November.

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(Reuters) - The EU's embargo on Iranian oil exports will add upward pressure to oil prices, OPEC's secretary general said on Monday, even though there is no shortage of oil on the market. Abdullah al-Badri also said he was not concerned about too much oil in the market, even though the Organization of the Petroleum Exporting Countries is pumping about 600,000 barrels per day (bpd) more than its new target of 30 million bpd.

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(Reuters) - U.S. stocks fell on Friday after data showed the U.S. economy grew less than expected in the fourth quarter, while weak earnings from Ford and continued caution over Europe's debt crisis also weighed on the market. U.S. gross domestic product expanded at its fastest pace in 1-1/2 years in the fourth quarter of 2011, the Commerce Department said, but missed forecasts. A strong rebuilding of inventories and weak spending on capital goods hinted at slower growth this year.

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(Reuters) - The U.S. economy grew at its fastest pace in 1-1/2 years in the fourth quarter of 2011, but a strong rebuilding of stocks by businesses and a slower pace of business spending hinted at softer growth early this year. U.S. gross domestic product expanded at a 2.8 percent annual rate, the Commerce Department said on Friday, a sharp acceleration from the 1.8 percent clip of the prior three months and the quickest pace since the second quarter of 2010.

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(Reuters) - Ford Motor Co reported a lower-than-expected fourth-quarter profit on Friday as commodity costs shot up and results from operations outside North America fell short of expectations. The No. 2 U.S. automaker's losses in Europe nearly quadrupled during the quarter as the economy suffered amid the ongoing debt crisis. Flooding in Thailand led to a loss in Asia, and increased competition blunted profits in South America.

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(Reuters) - Chevron Corp reported lower quarterly earnings on Friday, missing Wall Street forecasts, as rising spending on oil and gas projects and losses at its U.S. refinery business offset gains from higher crude oil prices. Oil and gas output at the No. 2 U.S. oil company also declined to 2.64 million barrels per day (BPD) from 2.79 million BPD a year-ago, although benchmark oil prices rose about 25 percent during the quarter.

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(Reuters) - Eastman Chemical (EMN.N) is buying Solutia Inc (SOA.N), chemicals provider for products from iPads to tires, for about $3.4 billion in cash and stock in a bid to drive its sluggish growth and focus on emerging markets, particularly the Asia-Pacific region. The deal values Solutia shares at a 42 percent premium over Thursday's closing price and was viewed as a good deal by Eastman investors, lifting its shares by 6 percent in morning trading on the New York Stock Exchange.

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(Reuters) - Wall Street edged lower on Thursday as housing and financial stocks lost ground after weaker-than-expected housing data gave investors reason to pause after a recent rally. Housing-related stocks declined after data showed sales of new single-family homes fell for the first time in four months in December and were below Wall Street expectations. The data followed Wednesday's soft pending home sales report and dented optimism that the housing market may have reached a bottom.

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