(Reuters) - Here's a bold prediction to feed Western worries that power is shifting inexorably to the East: China's yuan could overtake the U.S. dollar as the world's principal reserve currency as soon as next decade. Beijing has been promoting the use of the yuan beyond its borders since 2009 to settle trade transactions. The resulting build-up of deposits in Hong Kong has spawned a thriving yuan bond market.

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(Reuters) - Bill Gross, the manager of the world's largest bond fund, feels like "crying in his beer" for having bet so heavily against U.S. government-related debt earlier this year, the Financial Times reported on Monday. Showing a more bearish view on the U.S. economy, Gross said PIMCO had initially dumped all of its U.S. debt holdings in March as he expected economic growth to be higher, resulting in inflation down the road.

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(Reuters) - Boeing Co (BA.N) said its board approved plans to revamp its best-selling 737 narrowbody with a new engine, citing order commitments for 496 planes from five airlines. The revamped plane will be powered by engines from CFM International, a joint venture between General Electric Co (GE.N) and France's Safran (SAF.PA). Deliveries are scheduled to start in 2017, Boeing said in a statement on Tuesday.

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(Reuters) - Stocks rallied more than two percent in a broad rally on Monday as a merger between two big Greek banks provided a rare bit of encouraging news out of debt-stricken Europe, while a rebound in consumer spending calmed fears of a new recession. Financial stocks were the top gainers after Greek banks Alpha (ACBr.AT) and EFG Eurobank (EFGr.AT) sealed a merger that was expected to trigger more deals to shore up a sector battered by the euro zone's severe debt crisis and recession.

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(Reuters) - Consumer spending rose at its fastest pace in five months in July, a further sign the economy is not falling back into recession, although manufacturing activity in Texas almost stalled this month. Consumer spending increased 0.8 percent on strong demand for motor vehicles as Japan-related supply restraints faded, a Commerce Department report showed on Monday. Spending had slipped 0.1 percent in June

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(Reuters) - Hurricane Irene hit the East Coast at the most inopportune time for many businesses, keeping millions of shoppers away from stores and auto dealerships during what should have been a busy weekend. Irene struck a wide area from North Carolina up to Vermont, inflicting damage on the August sales results that automakers and many big U.S. retailers are set to report later this week.

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(Reuters) - Bank of America Corp is selling about half its stake in China Construction Bank for $8.3 billion, in its latest effort to shed assets and boost capital. A group of investors is buying 13.1 billion CCB shares from Bank of America, with the deal expected to close in the third quarter. The U.S. bank declined to name the investors but two sources said Singapore state fund Temasek was among the buyers.

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(Reuters) - Heavy equipment makers and rental companies stand to benefit from reconstruction efforts after Irene damaged roads and other infrastructure, took out power to millions of homes and flooded businesses. U.S. industrial shares were higher in the first trading day after Hurricane Irene passed over the northeastern United States, outperforming the broader stock market.

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(Reuters) - Europe gave a cool reception to a demand from the International Monetary Fund's new head Christine Lagarde to force its banks to bulk up their capital, saying the continent had done enough already. The European Commission said there was no need to recapitalize the banks over and above what had been agreed after a recent annual "stress test" check of their ability to withstand economic and financial market headwinds.

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(Reuters) - Many of the world's biggest energy companies may have to surrender most of the gas from Iraq's vast southern oilfields to a processing and export project led by Shell, a final draft contract between Baghdad and Europe's biggest company, obtained by Reuters, shows. Oil giants including Royal Dutch Shell (RDSa.L), BP (BP.L), U.S.-based Exxon (XOM.N), China's CNPC, and Italy's Eni (ENI.MI) signed technical service contracts to develop three oilfields in southern Iraq in 2009-2010.

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