Business News Headlines

(Reuters) - Morgan Stanley downgraded Google Inc a notch to "equal-weight," saying the search giant's margins will shrink as it undertakes aggressive hiring and ramps up advertising for new products.

BRUSSELS (Reuters) - European governments are ready to bail out those banks which cannot raise capital from investors after the EU details on July 15 which lenders have failed its latest, more vigorous stress test.

WASHINGTON (Reuters) - The U.S. economy is not facing a double-dip recession, but weak job growth is "a call to arms" for policymakers to take steps to reinvigorate the private sector, a top White House adviser said on Friday.

FRANKFURT (Reuters) - Deutsche Bank will come closer to deciding on its next chief executive this weekend when Chairman Clemens Boersig meets key supervisory board members to discuss leadership options, a person familiar with the matter said.

WASHINGTON (Reuters) - U.S. wholesale inventories rose more than expected in May, the U.S. Commerce Department said on Friday, creating a potential drag on growth in the second half of the year as the job market slows further.

SAN FRANCISCO (Reuters) - A year ago, Mike Maples's investment firm, Floodgate, was investing in young companies at a pace of two or three every quarter. Now, he's backed just one start-up all year and puts a big chunk of the blame on spiraling price tags.

Hiring slowed to a near-standstill last month. Employers added the fewest jobs in nine months and the unemployment rate rose to 9.2 percent.

U.S. stocks opened sharply lower Friday after the government said businesses added the fewest jobs in June in more than a year. The unemployment rate rose to 9.2 percent.

Nearly a billion dollars was wiped off the value of satellite broadcaster British Sky Broadcasting PLC Friday after British Prime Minister David Cameron indicated that the government was not going to wave News Corp's bid for the company through any time soon.

London police on Friday arrested Andy Coulson, the former News of the World editor who also served as the prime minister's former communications chief, in relation to Britain's tabloid phone-hacking scandal.

With an August deadline for a budget deal to raise the nation's debt ceiling looming, President Barack Obama and congressional negotiators are looking at closing some tax loopholes and cutting popular social benefit programs as they work to reach an agreement between Republicans and Democrats.

Wholesale companies added to their stockpiles for a 17th straight month in May but their sales declined for only the second time in the past 11 months, providing further evidence of the economy's spring slowdown.

Banks led Italian shares sharply lower Friday amid mounting concerns that the country may get dragged into Europe's debt crisis.

Oil is down 2 percent after the government indicated hiring is at a standstill in the United States.

Visa said Friday it has closed a donation channel to WikiLeaks after a payment processor briefly accepted money transfers to the anti-secrecy site.

The state of Montana has cut its ties to a joint Exxon Mobil-government command post overseeing an oil spill along the Yellowstone river, after the state's Democratic governor said the group was defying state open government laws by denying public access.

Banks led Italian shares sharply lower Friday amid mounting concerns that the country may get dragged into Europe's debt crisis.

The city of Auburn, N.Y. is banning natural gas-drilling wastewater from its treatment plant.