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Japan unleashed waves of yen selling on September 15 -- its first intervention to sell yen in six years -- in a successful market operation to push the currency off a 15-year high against the dollar.

Authorities confirmed the last action, but on Friday Japan's top currency official Rintaro Tamaki declined to comment on whether Tokyo had stepped into markets again, Jiji news agency reported.

Prime Minister Naoto Kan, re-elected last week in a ruling party leadership election, is keen to curb rises in the yen to protect Japan's export-reliant economy, while he also struggles with a divided parliament and growing tensions with China.

The dollar rose to 85.40 yen from about 84.55 yen in a matter of minutes, and several traders said it looked like the Bank of Japan, which acts on behalf of the Ministry of Finance, had been selling yen. The Bank of Japan had no comment.

"Rather than saying clearly whether they did or not, they may be trying to make market players jittery," a trader for a Japanese brokerage house said.

The yen's fall was also fueled by a market rumor that Bank of Japan Governor Masaaki Shirakawa might resign, which had encouraged some speculative buying of dollars, a dealer said, although traders were skeptical about the talk.

Dealers are waiting to see if Japan follows a similar intervention pattern on Friday to September 15, when authorities intervened repeatedly through the Asian, European and U.S. trading day, selling an estimated 2 trillion yen ($23 billion).

The dollar has been under selling pressure on speculation the U.S. Federal Reserve will take more quantitative easing steps later this year to shore up the fragile U.S. economy.

Japan, which acted alone in last week's intervention foray, is concerned that the yen's climb is damaging an economy already mired in deflation, and had said it was ready to act again if confronted with rapid currency moves.

"If it is intervention then it has managed to prevent the yen from appreciating but the impact has stopped there -- it hasn't succeeded in giving the dollar a strong boost," said Koji Ochiai, senior market economist at Mizuho Investors Securities.

"The dollar has risen above 85 yen but it is doubtful whether the authorities are willing to brush aside possible criticism from overseas and push it above 86 yen or 87 yen."

Finance Minister Yoshihiko Noda has said Tokyo must gain global understanding on its intervention, following concern among other nations about competitive devaluations.

Prime Minister Naoto Kan met U.S. President Barack Obama late on Thursday but the two did not discuss currency intervention, Kyodo news agency reported.

($1=84.37 Yen)

(Additional reporting by Hideyuki Sano; Writing by Charlotte Cooper: Editing by Neil Fullick)

Currency dealers had been expecting Japan to step back into the market after heavy yen-selling intervention last week for the first time since 2004, though renewed pressure on the dollar resulting from the risk of more monetary easing by the Federal Reserve and falling U.S. yields made them wonder about the timing.

"Given that this would be the second time (for intervention) and not as much of a surprise, I think the impact would be pretty limited at best. Even now, it seems tough for the dollar to hang onto the 85 yen level, and this will make it hard for the Nikkei to rise substantially in turn," said Masayoshi Okamoto, head of dealing with Jujiya Securities in Tokyo.

Japanese equities followed the dollar higher against the yen, with investors embracing the benefits to domestic exporters of a weaker currency.

The dollar was at a session high around 85.38 yen minutes after trading at 84.50 yen, with dealers citing talk of intervention. The post-intervention low of 84.26 yen was hit on Thursday.

Japan intervened on September 15 minutes after the dollar hit a 15-year low of 82.87 yen, selling an estimated 2 trillion yen ($23.70 billion), its largest single-day yen selling intervention. Also pressuring the dollar were shrinking yield gaps between the dollar and the yen.

Japan's Nikkei share average was largely unchanged on the day, cutting earlier losses. Big exporter stocks such as Toyota (7203.T) and Honda (7267.T) were among the biggest supports to index.

($1=84.37 Yen)

(Editing by Alex Richardson)

The cash will help fund the world's largest oil exploration plan, which at $224 billion for the 2010-2014 period aims to turn Brazil into a major energy exporter.

The Rio de Janeiro-based company sold 1.87 billion new preferred shares (PETR4.SA) at 26.30 reais each, the company said in a regulatory filing. It sold 2.4 billion new common -- or voting -- shares (PETR3.SA) at 29.65 reais each.

Uncertainty that the offering might not come off had brought a prolonged sell-off of Petrobras shares that shaved more than $70 billion off its market value. But the optimism displayed by investors seeking exposure to one of the world's largest oil finds in recent decades outweighed worries about growing state involvement in the company's affairs.

"The deal priced at a very tight discount, which is comforting to know because the market expected it to price lower," said Marcio Macedo, who manages about $40 million of stocks for Sao Paulo-based Humaita Investimentos. "After this very successful deal, markets will be in a good tone tomorrow."

The deal's 2 percent discount to Thursday's closing price was much smaller than what investors expected, Macedo said.

This year, the preferred shares -- the company's most widely traded class of stock -- slumped 27 percent partly because of worries of mounting state interference as well as uncertainty over the fate of the offering.

The record-setting stock sale, which was larger than what the company originally planned but fell short of the maximum it had filed to sell, had total demand of $87 billion, a source with knowledge of the deal told Reuters. The bids included 98 billion reais ($57 billion) from existing shareholders and $30 billion from institutional investors, a source with knowledge of the transaction said.

Sovereign wealth funds from the Middle East and Asia were among the investors buying into the offering, the source said on condition of anonymity.

The offering had "tremendous demand" from U.S. mutual funds, the source added.

Petrobras said in the filing that it may sell another 188 million new shares to meet demand in the next 30 days.

BOON FOR LULA

Banco Bradesco BBI, the investment banking arm of Banco Bradesco (BBDC4.SA)(BBD.N), was the lead manager of the offering.

Bank of America Merrill Lynch (BAC.N), Citigroup (C.N), Santander (SAN.MC), Morgan Stanley (MS.N) and Itau BBA, the wholesale banking arm of Itau Unibanco (ITUB4.SA)(ITUB.N), acted as global bookrunners of the deal.

Petrobras preferred shares (PETR4.SA), the company's most widely traded class of stock, rose 3.2 percent to 26.80 reais, outpacing a 0.7 percent rise by the Brazil's benchmark Bovespa stock index .BVSP. That was the share's largest single-day gain since September 3.

A two-hour meeting between Obama and Wen on the sidelines of the U.N. General Assembly was dominated by a lengthy, candid discussion about an issue that has been a persistent irritant in U.S.-Chinese relations and now has the attention of U.S. lawmakers.

The talks between Obama and Wen came as U.S. lawmakers appeared to move closer than ever to acting on long-standing threats to pass legislation that would penalize China for keeping its currency artificially weak.

Critics inside and outside Congress say China deliberately undervalues its currency by as much as 25 percent to 40 percent to give Chinese companies an unfair trade advantage, hurting U.S. exports and employment.

Both Obama and Wen spoke in diplomatic niceties in their public remarks at a picture-taking session as their talks began. Obama stressed that both countries must work to achieve balance and sustained economic growth and Wen said, "Our common interests far outweigh our differences."

During their private talks, Obama said the currency issue was the "most important issue" of their meeting, said Jeffrey Bader, the senior National Security Council official for Asia. He said there was a far more intensive discussion of the topic than in their previous meetings.

Bader said Obama "made clear that we're expecting to see more action, more significant movement" on China's yuan in the months ahead and noted that the Obama administration had authorized a couple of complaints about Chinese trade practices through the World Trade Organization.

"So the president made clear that, through that and in his meeting, that he's going to protect U.S. economic interests and that we look for the Chinese to take actions. If the Chinese don't take actions, we have other means of protecting U.S. interests," Bader said.

Wen told Obama that China would press ahead with reforming exchange rate rules for the yuan, Bader said.

"Premier Wen did reiterate the Chinese intention to ... continue with reform of their exchange rate mechanism," he said.

Wen's delegation did not speak to reporters after the meeting, but during the picture-taking session Wen told Obama he believed all differences between the United States and China could be resolved through dialogue and that he had a constructive attitude.

Wen and Obama also discussed tensions between China and Japan in the East China Sea.

"It's not in our interest to see these countries in this kind of a dispute," said Bader, echoing Secretary of State Hillary Clinton's call for a peaceful resolution in her meeting with Japanese Foreign Minister Seiji Maehara.

Obama stressed to Wen the "U.S. interests of freedom of navigation in the South China Sea" and the importance of peaceful resolution of maritime territorial disputes between China and its southern neighbors, said Bader, who added the issue would be discussed on Friday when Obama meets leaders of the Association of Southeast Asian Nation countries.

China's central bank said in June it would loosen a peg against the dollar and let the yuan fluctuate more freely. It has since risen 1.8 percent against the dollar.

BHP, the world's largest mining company, said on Thursday it has received antitrust clearance from the U.S. Federal Trade Commission to proceed with its $39 billion hostile bid for the world's largest fertilizer maker.

However, BHP said the offer is still contingent on other regulatory approvals. The bid is likely to face much tougher scrutiny in Canada, where the country's competition watchdog has already requested additional information.

Last month, the Anglo-Australian miner launched its hostile $130-a-share offer to acquire Potash Corp. The Saskatoon, Saskatchewan-based company flatly rejected the bid as "grossly inadequate" and it has filed a lawsuit against BHP in an attempt to stymie a takeover.

In Canada, the bid faces review under the Canada Competition Act and under the Investment Canada Act.

The request by the Canadian Competition Bureau for more information, earlier this week, prompted BHP to extend the deadline on the tender offer by a month to November 18.

The Investment Canada review is expected to be BHP's biggest regulatory hurdle, because it must prove that its offer is of net benefit to Canada and, perhaps, that there is no risk to national security.

BHP Chief Executive Marius Kloppers toured Canada this week, meeting with politicians both at the provincial and federal levels, to convince them of merits of the BHP offer.

Kloppers has made clear that the takeover process is likely to continue at least until the end of this year, which means it will likely extend its bid beyond the current deadline.

"BHP Billiton remains confident that the offer will receive all remaining requisite regulatory approvals in due course," the company said in its latest statement.

(Reporting by Euan Rocha; Editing by Frank McGurty and Richard Chang)

The private-sector National Bureau of Economic Research, considered the arbiter of recessions, announced on Monday it had pegged June 2009 as the end of the slump. That was no surprise to Wall Street economists, most of whom had long ago concluded the recession ended in the summer of last year.

But it put the Obama administration in an awkward position. How can policymakers declare the recession is over when nearly 15 million people are still out of work?

"I'm not an economist, and I'm not an academic," Geithner said on Wednesday when a Republican lawmaker tried to pin him down on whether he thought the recession was over. "And I would just say the following: This is still a very tough economy."

That answer didn't satisfy Representative Bill Posey, who at one point told Geithner to "man up" and give a clear yes or no answer. (Posey posted a YouTube video of the exchange on his website: here#!)

"Let me try one more time," Geithner said after a lengthy exchange with Posey. "We are absolutely out of the worst stage, worst, most graded, most severe, most at-risk point of this crisis, absolutely, absolutely."

For Buffett, it's a matter of semantics rather than politics. The NBER considers a recession over when the economy gets back on the recovery path, while Buffett contends it isn't over until the damage is repaired.

"On any common sense definition, the average American is below where he was before, or his family, in terms of real income, GDP," Buffett said in a CNBC interview. "We're still in a recession. And we're not going to be out of it for a while, but we will get out of it."

So is the recession over?

By the NBER's definition, yes. While the economy is far from regaining its pre-recession heights, it is at least on the way up.

"It's more accurate to say that a recession -- the way we use the word -- is a period of diminishing activity rather than diminished activity," the NBER explains in the "frequently asked questions" section of its website. (here)

Lest anyone think the NBER is getting overly optimistic, its FAQ section -- updated after Monday's declaration that the recession was over -- also includes sections on whether it identifies depressions, and whether it has a special designation for double-dip recessions.

No on both counts.

(Editing by Dan Grebler)

"We're still in a recession," Buffett told CNBC television in an interview broadcast on Thursday. "We're not gonna be out of it for a while, but we will get out."

On Monday, the National Bureau of Economic Research said the world's largest economy ended an 18-month recession in June 2009, but cautioned that its assessment did not mean normal activity had resumed.

Buffett said he defines a recession differently from the NBER, saying it ends when real per capita gross domestic product returns to its pre-downturn level.

President Barack Obama said on Monday that economic weakness is "still very real" for the millions of Americans who are out of work, have seen the value of their homes fall, or are mired in debt.

Buffett, 80, runs Berkshire Hathaway Inc, which has roughly 80 operating businesses. "A great majority" of these businesses are "coming back slowly," he said.

Berkshire's operations cover a broad swath of the economy, including the Burlington Northern Santa Fe railroad, Dairy Queen ice cream, Geico auto insurance, and luxury jewelers such as Borsheim's.

Shipments at Burlington Northern are "61 percent of the way back," Buffett said. "Our carpet business, our brick business, our insulation business, they're not back 61 percent, but they are moving back."

On Tuesday, the U.S. Federal Reserve, which has already driven short-term lending rates to near zero, said it is prepared to provide additional stimulus to support economic expansion and avert possible deflation.

"We've used up a lot of bullets," Buffett said. "And we talk about stimulus. But the truth is, we're running a federal deficit that's 9 percent of GDP. That is stimulative as all get out."

Buffett's $45 billion net worth makes him the second-richest American, trailing only Microsoft Corp co-founder Bill Gates, Forbes magazine said on Wednesday.

Berkshire Class A shares fell 0.6 percent to $123,077 in morning trading. They traded as high as $126,160, their highest level in nearly 23 months, on September 17.

(Reporting by Jonathan Stempel; Editing by Lisa Von Ahn)

Initial claims for state unemployment benefits increased 12,000 to a seasonally adjusted 465,000, the Labor Department said on Thursday, breaking two straight weeks of declines.

Analysts polled by Reuters had forecast claims unchanged at 450,000. The prior week's figure was revised up to 453,000.

Last week's claims data covered the survey period for the government's closely watched employment report for September, scheduled for release early next month.

"They confirm there is not going to be an expansion in employment for the foreseeable future," said Peter Kenny, managing director at Knight Equity Markets in Jersey City, New Jersey.

U.S. stock index futures slightly added to losses after the report, while government debt prices extended gains. The U.S. dollar fell against the yen.

A Labor Department official said only one state had been estimated for last week's claims report and noted that applications for jobless benefits tend to rise in the week following a holiday.

The four-week average of new jobless claims, considered a better measure of underlying labor market trends, fell 3,250 to 463,250, the lowest since July 31.

The labor market has been showing modest signs of improvement after a setback in the second quarter as economic growth slowed sharply.

Relentlessly high unemployment is crimping consumer spending and the Federal Reserve on Tuesday signaled it would, if needed, inject more money into the economy to shore up the recovery and avert a damaging downward spiral in prices.

The central bank already has cut overnight interest rates to near zero and pumped more than $1.7 trillion into the economy with purchases of Treasury and mortgage-related debt.

Stimulating the lethargic economy is a major challenge for President Barack Obama, and a wave of voter anger over a 9.6 percent unemployment rate could cause the Democratic Party to lose control of Congress to Republicans in the November 2 mid-term election.

"One of the biggest reason why companies are reluctant to hire is uncertainty, not so much political uncertainty as it is being touted, but because of the lack of faith that revenue and profitability could be sustained going forward," said Guy Lebas, chief fixed income strategist at Janney Montgomery Scott in Philadelphia.

Despite the bump up in new applications for unemployment benefits last week, claims are holding well below a nine-month high of 504,000 touched in mid-August.

The number of people still receiving benefits after an initial week of aid dropped 48,000 to 4.49 million in the week ended September 11 from an upwardly revised 4.54 million the prior week.

Analysts polled by Reuters had forecast so-called continuing claims slipping to 4.46 million from a previously reported 4.49 million.

More than 80 percent of the company's senior noteholders have agreed to support the plan and provide $125 million in "debtor-in-possession" (DIP) financing to help support Blockbuster's operations while it is under bankruptcy, the company said in a statement.

"Currently, all 3,000 of the company's stores in the United States will remain open," it said.

Blockbuster said it will no longer provide funding to support its operations in Argentina, which have experienced continued shortfalls in operating cash flow.

In a separate statement, Blockbuster Canada said it was not included in the Chapter 11 filing and all its operations were conducting business as usual.

Earlier this year, the Dallas-based retailer said it would close nearly 10 percent of its stores. Customers have moved away from renting films through its outlets in favor of online services such as Netflix (NFLX.O).

Blockbuster rival Movie Gallery Inc (MVGRQ.PK) filed for bankruptcy in February. Though the operator of the Hollywood Video rental chain initially planned to reorganize, by May it had decided to liquidate entirely.

The case is In re: 10-14997, U.S. Bankruptcy Court, Southern District of New York.

(Reporting by Santosh Nadgir and Sakthi Prasad in Bangalore)

European stocks fell 0.7 percent in early trade as investors fretted about the region's economy after data showed the pace of growth in the euro zone's services and manufacturing sectors slowed more than expected this month.

Economic data on tap on Thursday include weekly initial jobless claims, existing home sales for August and leading economic indicators for August, while companies expected to release quarterly results included Nike (NKE.N) and Rite Aid (RAD.N).

Red Hat Inc (RHT.N) will be in focus after reporting lower fiscal second-quarter profit on Wednesday that beat Wall Street forecasts, as sales of its software rose sharply. Its shares rose 1.9 percent after the bell.

Bed Bath & Beyond (BBBY.O) will also be in the spotlight after the company beat quarterly profit and sales estimates and boosted its full-year view, sending its shares up 5.5 percent after the bell.

United Parcel Service Inc (UPS.N) will open its first Asian healthcare supply chain facility in Singapore in 2011 as it expands into the logistics business.

Starbucks Corp (SBUX.O) said it planned to charge more for large-sized and labor-intensive drinks because of surging prices for coffee and other commodities.

The timing of the U.S. Securities and Exchange Commission's case against Goldman Sachs (GS.N) was "suspicious," a federal watchdog said, suggesting the SEC used it to divert attention from a report sharply criticizing its probe into accused Ponzi schemer Allen Stanford.

Microsoft (MSFT.O) sold $4.75 billion in new debt on Wednesday, some of it at the lowest U.S. corporate borrowing rate on record, as the world's largest software company took advantage of low interest rates to raise cash.

The benchmark Euro STOXX 50 .STOXX50E, the euro zone's blue chip index, pierced its 200-day moving average and fell below a key support level, the 50 percent retracement of the index's drop to a May low from an April high.

Much of Asia was closed, with public holidays in Japan, China, Hong Kong and South Korea.

U.S. stocks slipped on Wednesday, ending the Dow's five-day winning streak, following Adobe's discouraging revenue outlook and investor disappointment over Microsoft's new dividend.

The Dow Jones industrial average .DJI dipped 21.72 points, or 0.2 percent, to 10,739.31. The Standard & Poor's 500 Index .SPX slipped 5.50 points, or 0.5 percent, to 1,134.28. The Nasdaq Composite Index .IXIC lost 14.80 points, or 0.6 percent, to 2,334.55.

(Reporting by Blaise Robinson; Editing by Dan Lalor)

The lawsuit, filed in a U.S. District Court in Chicago, alleges BHP misrepresented material facts related to its bid for the world's largest producer of potash -- a key crop nutrient. It also accuses BHP of fraud related to the offer.

BHP said the suit lacked merit and vowed to defend itself. In a statement, the Anglo-Australian mining company also said it believes the suit won't delay the takeover process.

"This lawsuit seems to be their answer to the absence of another bidder emerging, and it's surprising that they would try to deprive their shareholders of the only offer on the table," said a BHP spokesperson who spoke on the condition that he not be identified by name.

The lawsuit is the latest gambit in Potash's month-long fight against BHP's $130-a-share offer, which it has flatly rejected as inadequate. But Potash is not insisting on independence either.

Last week, media reports said Potash Corp was attempting to assemble a consortium to back a management-led buyout, possibly involving Sinochem, China's state-owned chemicals group.

China is worried about a takeover by BHP because it needs low-cost fertilizer to nourish crops to feed its growing population, while Potash Corp's home province of Saskatchewan is concerned that a successful BHP bid could eventually drive down government revenue.

Despite appearances to the contrary, the purpose of Potash Corp's suit is not to force BHP to walk away, sources close to the matter said.

"The injunction is designed to stop the deal until the truth comes out," one source said. "The suit is to enjoin future and further violations of the law, not to actually make sure there is no offer."

Potash Corp has asked the court to resolve the litigation before the November 18 deadline on BHP's bid, the source said.

The suit claims BHP sought to drive down the Canadian company's perceived value by trumpeting its own plans to enter the potash business. That way, the suit argues, BHP could eventually make a bid for Potash Corp at a low enough price to avoid triggering a BHP shareholder vote.

Under British law, a shareholder vote is required if a company attempts a takeover that exceeds 25 percent of its own market valuation.

At $39 billion, or $130 a share, BHP's current offer allows it to avoid a vote that could scupper a deal.

Before bidding for Potash Corp, BHP was focused on building the huge Jansen potash project in Saskatchewan. Slated to begin production around 2015, Jansen has the potential to rank as the world's largest potash mine.

"To suggest our plans to develop Jansen was a ruse is absurd," said the BHP spokesperson. "We have repeatedly reaffirmed to the governments of Saskatchewan and Canada our commitment to continue advancing the project."