* Compromise still seen possible over weekend * U.S. Republican leaders will scramble to rescue their budget deficit-cutting plan on Friday after conservatives mounted a rebellion that heaped uncertainty on efforts to avert a catastrophic debt default. House of Representatives Speaker John Boehner's failure to round up enough support for his plan on Thursday

  * Gold consolidates gains after hitting a record this week * Asian equities slipped on Friday as investors braced for more volatility after lawmakers failed to make progress in breaking a deadlock over raising the debt ceiling and avoiding a default. The euro tumbled after Moody's rating agency said it placed Spain's "AA2" credit

 * Economists, IMF officials question Greek rescue package * Italy's borrowing costs soared at a closely watched bond auction on Thursday as investors worried by the euro zone debt crisis and an impasse over the U.S. debt ceiling exacted a high risk premium. The 8 bln euro ($11.4 bln) auction was conducted in volatile markets

Economic sentiment in the euro zone worsened more than expected this month with optimism fading in all sectors, data showed on Thursday, signalling slower expansion of the region's economy in the second half of this year. The European Commission's monthly sentiment index, based on a survey of businessmen and consumers across the 17-nation euro zone,

Tens of thousands of European bankers are losing their jobs in a deep trading slump that has been compounded by regulatory curbs on excessive risk — and many more will be out of work before Christmas. As Switzerland's Credit Suisse , which weathered the financial crisis better than most peers, announced 2,000 job cuts on

 * Sony Q1 profits fall 59%; Nintendo falls to 27-year low * Japan's top consumer electronic firms recovered faster than expected from the March earthquake, keeping their full-year profit forecasts despite a weakening TV market and worries about the outlook for the global economy. Video game maker Nintendo Co was a standout disappointment, unexpectedly slumping

House prices in England and Wales were flat on the month in June and fell 2.5% compared with a year ago, the biggest annual fall since October 2009, government data showed on Thursday. The Land Registry said house prices stood at an average 161,479 pounds ($263,850). It said house prices in London rose 0.8% on

Fitch Ratings has postponed its decision on Portuguese credit standing to the fourth quarter from the end of July, giving the new centre-right government more time to implement austerity under an EU/IMF bailout plan. But it warned in a report on Thursday that the rating remains under pressure and failure to meet fiscal targets or