(Reuters) - A threat by Standard & Poors to slash credit ratings across the euro zone sounded a clarion call on Tuesday, which could help Nicolas Sarkozy and Angela Merkel force through a change to the European Union treaty at a summit this week. The French president and German chancellor are determined to change European rules to impose mandatory penalties on countries that exceed deficit targets, aiming to restore market confidence and prevent a sovereign debt crisis spiraling out of control.

• Read more

(Reuters) - Sergio Marchionne, the chief executive of Chrysler Group LLC and Fiat SpA, said he is "guardedly optimistic" that the European Union would take steps this week to help the euro regain its credibility. Without detailing what those steps might be, Marchionne said there was a "better than 50 percent chance" that the EU would obtain the necessary consensus at its summit this week to shore up the currency.

• Read more

(Reuters) - Billionaire investor Carl Icahn went hostile with his bid to buy Commercial Metals Co (CMC.N) on Tuesday, a day after the metals recycler rejected his $1.73 billion offer. Icahn said he will stick with his original bid price of $15 a share for the tender offer, despite the company terming the offer as low. "After attempting to work with the board, we are launching this tender offer so that shareholders can decide for themselves what they wish to do with their company," Icahn said in a statement.

• Read more

(Reuters) - An independent panel issued a damning report on a $1.7 billion accounting scandal at Japan's disgraced Olympus Corp on Tuesday, urging legal action against the executives responsible for the cover-up and the replacement of other board members who knew. The six-man panel of experts found no link with organized crime, however, an outcome that may help the 92-year-old maker of cameras and endoscopes remain listed on the Tokyo stock exchange and survive a scandal that ranks among Japan's worst.

• Read more

(Reuters) - Stocks rose on Monday, with the S&P 500 inching above its 200-day moving average, as optimism grew that an upcoming European Union summit would resolve the euro zone debt crisis. The Dow Jones industrial average .DJI gained 165.03 points, or 1.37 percent, to 12,184.45. The Standard & Poor's 500 Index .SPX gained 21.76 points, or 1.75 percent, to 1,266.04. The Nasdaq Composite Index .IXIC gained 44.07 points, or 1.68 percent, to 2,671.00.

• Read more

(Reuters) - France and Germany have agreed on a series of reforms to address the euro zone sovereign debt crisis that will be presented to EU President Herman Van Rompuy on Wednesday, French President Nicolas Sarkozy said after a meeting with German Chancellor Angela Merkel on Monday. "We want to make sure that the imbalances which led to the situation in the euro zone today cannot happen again," Sarkozy told a news conference.

• Read more

(Reuters) - The economy showed signs it was decelerating, with an index of service activity pointing to slower growth in November while new orders for factory goods declined in October for the second straight month. The Institute for Supply Management said on Monday its services index fell to 52.0 last month from 52.9 the month before. The reading was below economists' forecasts for 53.5, according to a Reuters survey.

• Read more

(Reuters) - The U.S. futures regulator approved on Monday a rule that puts tighter limits on how brokerage firms can use customer funds, a measure that the now-bankrupt MF Global had encouraged the agency to delay. The measure was finalized by the Commodity Futures Trading Commission by a 5-0 vote. The rule was initially proposed by the CFTC in October 2010.

• Read more

(Reuters) - Comcast Corp, the largest U.S. cable operator, will start selling Verizon Wireless products in four markets early next year, its top cable executive said on Monday. Comcast, Time Warner Cable Inc and Bright House Networks last week said they had reached a deal to sell wireless spectrum to Verizon Wireless for $3.6 billion in a transaction that will also see Verizon sell cable products and the cable companies bundle Verizon wireless products.

• Read more

(Reuters) - Wall Street eased on Thursday after the Dow posted its best run in nearly three years, but hopes Friday's key jobs report would underscore signs of strength in U.S. economy kept investors engaged. U.S. companies probably stepped up hiring in November, which could add to expectations of stronger economic growth in the fourth quarter. Non-farm payrolls are forecast to have increased 122,000 after October's 80,000 gain.

• Read more