LISBON, Oct 2- Portugal Telecom is to combine with Brazil's largest fixed-line telecoms group Oi to form a new company worth about 5.6 billion euros and with 100 million subscribers. The new company will have its headquarters in Brazil and be led by Zeinal Bava, the former CEO of Portugal Telecom, who took the helm at Oi in June.
TOKYO, Oct 2- Japan's ANA Holdings won the battle of Haneda on Wednesday, beating rival Japan Airlines to scoop up most of the new international landing slots at the world's fourth busiest airport in Tokyo and a victory for its Star Alliance group. A further four slots which are for destinations to the United States, have yet to be decided.
*Lukoil set to join other companies fleeing Venezuela. *Analysts say political risks in Venezuela are high. MOSCOW, Oct 2- Russia's No.2 crude oil producer Lukoil plans to leave a Russian consortium developing a large oil project in Venezuela, a source close to the company told Reuters on Wednesday after a report in Kommersant daily.
SAO PAULO/ BRASILIA, Oct 2- For tech companies in Brazil, the government's decision to target their operations in response to U.S. spying is about as smart as sending an angry email in the heat of an argument.
Oct 2- Applications for U.S. home loans dipped slightly in the latest week, as a drop in demand for purchase loans outweighed an increase in refinancing demand, data from an industry group showed on Wednesday.
*Gold rises after 3 percent fall on Tuesday. LONDON, Oct 2- Gold edged up on Wednesday after a three percent fall in the previous session to a three-month low, as investors focused on the first U.S. government shutdown in 17 years, which sent the dollar lower.
JAKARTA, Oct 2- Freeport-McMoRan Copper& Gold Inc reached a tentative agreement with Indonesian union workers on Wednesday over wages and pensions, a union official said, raising hopes that a strike will be averted with just two days left of talks.
*DFM shares soar 15 pct; Dubai's index hits 5- yr high. *J.P. Morgan, First Gulf Bank, Citigroup chosen as advisers. ABU DHABI/ DUBAI, Oct 2- Abu Dhabi and Dubai have hired banks to advise on a possible merger of their two main stock exchanges, a state-backed deal that could energise financial markets in the United Arab Emirates, sources familiar with the plan said.
*Liquidity thin with China away for holiday. LONDON, Oct 2- Copper steadied on Wednesday after hitting a one-week low, as worries about the wider impact of the first partial U.S. government shutdown in 17 years cut risk appetite, with a weaker dollar limiting losses.
WELLINGTON, Oct 2- New Zealand's Fonterra, the world's biggest dairy exporter, said it is in talks to resolve a dispute with Danone over a contamination scare involving a Fonterra ingredient used by the French food manufacturer.
*Tesco Q2 UK lfl sales, ex fuel and VAT, flat. LONDON, Oct 2- Tesco, Britain's biggest retailer, posted flat sales 18 months into a 1 billion pound recovery plan for its main home market, a lack of growth exposed by accelerating sales at rival J Sainsbury.
*Euro moves dictated by ECB meeting, Italy politics. "We do fear that as this discussion drags on, volatility in the market will continue to increase," said Patrick Moonen, senior equity strategist at ING Investment Management.
*J.P. Morgan, First Gulf Bank, Citigroup chosen as advisers. By Stanley Carvalho and Dinesh Nair. ABU DHABI/ DUBAI, Oct 2- Abu Dhabi and Dubai have hired banks to advise on a possible merger of their two main stock exchanges, a state-backed deal that could energise financial markets in the United Arab Emirates, sources familiar with the plan said.
FRANKFURT, Oct 2- The Ontario Teachers' Pension Plan has bought a 2 percent stake in Europe's biggest online fashion retailer Zalando, continuing a push into e-commerce investment for the fund.
Oil prices have tumbled over the past month as output has improved, with Libya ramping up production, while tensions over Syria and Iran have eased, dampening worries of any disruption to production from the giant Middle East oilfields.
*Euro moves dictated by ECB meeting, Italy confidence vote. *ECB decision at 1145 GMT, press conference at 1230 GMT. LONDON, Oct 2- Concerns over a U.S. government shutdown saw the dollar slip to a one month low against the yen on Wednesday, while expectations for a European Central Bank meeting and Italian government confidence vote kept the euro under pressure.
HONG KONG, Oct 2- Hong Kong shares rebounded off a three-week low on Wednesday, led by Hutchison Whampoa after local media reported the ports-to-telecoms conglomerate may spin off its Watsons health and beauty retail unit through an initial public offering. Hong Kong markets were shut on Tuesday for China's National Day holiday.
Tesco, which is the UK's biggest retailer and has a market capitalisation of 30 billion pounds, fell 3.5 percent in heavy volume after it said: "Challenging economic conditions overseas, particularly in Europe, have held back consumer confidence and spending, leading to a lower level of sales than expected."
SAN FRANCISCO, Oct 2- Software giant SAP AG said it is allocating more than $650 million to a new venture fund, SAP Ventures Fund II, showing the growing role that corporations are taking on in funding the world's youngest companies.
LONDON, Oct 2- Italian bonds firmed on Wednesday on expectations Prime Minister Enrico Letta will survive a possible confidence vote after senior centre-right figures showed support for his coalition. Tension rose in Italy after five ministers from former premier Silvio Berlusconi's party resigned at the weekend.