Traders work on the floor of the New York Stock Exchange, July 10, 2012.

NEW YORK | Sat Sep 29, 2012 4:17am EDT

NEW YORK (Reuters) - Wall Street will open October with a busy week, highlighted by low expectations for global manufacturing data and the U.S. jobs report, but that could set the stage for positive surprises that help lift the market.

The S&P 500 .INX.SPX finished its third positive quarter in the last four on Friday, despite suffering its largest weekly percentage decline since June. For the past three months, the S&P 500 gained 5.9 percent - its best third quarter since 2010. In contrast, the index was down 1.3 percent for the week.

The benchmark S&P 500 earlier this month reached its highest level since late 2007. Yet uncertainty remains over whether stocks can hold their gains against the headwinds of a struggling economy. That explains, in part, the retreat over the last several days.

The S&P 500 hit a high of 1,474.51 in mid-September before pulling back by a bit more than 2 percent. A run at 1,500 seems possible, but the flurry of economic and world events ahead probably will prevent a major advance in the coming week.

Bulls are betting this week's Spanish budget proposals will be a preamble to a bailout request by Mariano Rajoy's government. The move would be seen as a first step to get the finances of the euro zone's fourth-largest economy in order and would clear some of the market uncertainty regarding the euro zone crisis.

Monetary policy is also on the list of market catalysts next week. Federal Reserve Chairman Ben Bernanke is scheduled to speak on Monday and the minutes of the latest FOMC meeting are set for release later in the week. The week's agenda includes meetings of the European Central Bank, the Bank of England and the Bank of Japan.

"I think we could see a rebound next week if we get some of the stars aligning and have Spain ask for a bailout, the ECB announcing favorable terms for that bailout, and if we see the Bank of Japan announce further monetary intervention," said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin.

"If Spain and the ECB don't deliver, we could set ourselves up for a further lateral move in the markets. A negative would be if Rajoy flat-out denies that they need a bailout."

The ECB and BOJ are set to meet on Thursday, with the Bank of Japan's meeting extending until Friday.

FACTORIES, JOBS AND THE DEBATES

Chinese factory and business conditions data will kick off a numbers-heavy calendar for markets. Manufacturing PMI, due on Monday, is expected to show a second straight month of contraction.

A snapshot of U.S. manufacturing activity will be provided on Monday when the Institute for Supply Management releases its September index. The September ISM reading is expected to show another month of contraction, but at a slightly slower pace than in August. On Wednesday, the ISM will release its U.S. services-sector Purchasing Managers' Index, which could show a slight deceleration in the pace of growth in the non-manufacturing sector.

"We have Chinese economic data over the weekend, and we'll see how markets react on Monday," said Wasif Latif, vice president of equity investments at San Antonio, Texas-based USAA Investment Management.

"It seems like the market is bracing for bad numbers, meaning if they're not as bad, it could be market-positive," Latif said.

Non-farm payrolls for September, due on Friday, are seen up 115,000, while the U.S. unemployment rate is seen ticking up 0.1 percent from August to 8.2 percent in September.

The jobs data will come on the heels of the first of three U.S. presidential debates, scheduled for Wednesday night. Recent poll numbers point to a strengthening lead by President Barack Obama, but a weak payrolls reading could give some hope to Republican challenger Mitt Romney.

"If Romney doesn't turn the ship with a very strong (debate)performance, the president is going to win," said Jack de Gan, chief investment officer at Harbor Advisory Corp in Portsmouth, New Hampshire.

He said the trend in the polls has taken away some of the market uncertainty regarding the presidential election. He added that an ECB- or Spain-related headline out of Europe on Thursday could overcome almost anything that would happen Wednesday night during the debate.

"I think the market is coming to terms with the fact the president is ahead, and unless something significant changes, (he) will prevail."

(Wall Street Week Ahead runs every Friday. Questions or comments on this column can be emailed to: rodrigo.campos(at)thomsonreuters.com)

(Editing by Jan Paschal)

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Rebel Wilson arrives for a premiere at the Sundance Film Festival in Park City, Utah, in this January 23, 2012 file photo.

LOS ANGELES | Fri Sep 28, 2012 3:06pm EDT

LOS ANGELES (Reuters) - Playing a character called Fat Amy is probably not the dream of most Hollywood actresses but Australian comedienne Rebel Wilson enjoys breaking the rules - and she's not about to stop eating dessert.

After several small but memorable roles in films such as "Bridesmaids" and "Bachelorette," the 27-year-old Wilson looks poised to make it big in the musical film "Pitch Perfect," which opens in U.S. movie theaters on Friday.

The film, about an all-girls college singing group competing against male rivals, has an ensemble cast that includes Anna Kendrick, Brittany Snow and R&B singer Ester Dean.

But it is Wilson who steals the show with wild antics and improvised one-liners as singer Fat Amy, a cardio-averse, over-confident member of acapella group The Bellas.

Variety's review said the "picture belongs to Wilson," adding that the actress "fearlessly steps into yet another part that pokes fun at her figure, and happily reveals an outsized singing voice and hilarious dance moves to match."

Boxoffice Magazine wrote that Fat Amy "is the role that will turn her into a star," pointing out that Wilson is "hilariously, thrillingly crude" and "could very easily gobble up the film if she weren't such a generous ensemble performer."

Wilson has no qualms about making fun of her own figure.

"In comedy, you've got to use what you've got," Wilson told Reuters. "I'm not a size two, so of course I'm going to use that physicality to my advantage."

Weight maybe be a factor in her newfound Hollywood career but she is conscious about staying healthy.

"You need to have a lot of stamina to do this (job,)" she points out. "I try to be healthy. I train three days a week with a trainer. But I do like to eat, clearly. And I do eat dessert every day. If I cut that out, yes, I would lose weight."

At the moment, however, she has no plans to cut anything out and is enjoying breaking down barriers.

She recently finished shooting action comedy "Pain and Gain" directed by Michael Bay, a filmmaker known for working with models and directing commercials for Victoria's Secret.

"Guess what I wear in the movie? Victoria's Secret underwear - that's all I'm dressed in," said Wilson.

"I know I'm not the physical body type that he usually casts, but for some reason he likes me and thinks I'm funny, so maybe I'm changing his mind," she said of the director.

HALLUCINATION

Wilson's physical stature was never something she thought would be a factor when it came to her career because she did not set out to be an actress.

She graduated from the University of New South Wales with a law degree and was a Rotary International youth ambassador for Australia, stationed in South Africa. While there, she contracted malaria, an event she called "life-changing."

"When I was in the hospital in intensive care, I had this hallucination that I was an actress and that I was really, really good, and that I won an Oscar," Wilson recalled.

She decided to make a career change. Unable to find acting work or an agent, she wrote and starred in her own play, "The Westie Monologues," which became a huge success in Sydney.

That led to professional work on Australian television shows and she eventually came to the United States. Last year's comedy hit "Bridesmaids" - in which she played Kristen Wiig's slacker, diary-reading roommate - put her instantly on the map.

"That really set the bar high," Wilson admitted. "I got a lot of movies off the back of that."

She'll soon be getting more exposure in the TV comedy "Super Fun Night," which was picked up by ABC this month. In yet another sign that she's not just another Hollywood actress, she wrote the script for herself to star in.

(Reporting By Zorianna Kit, editing by Jill Serjeant and Claudia Parsons)

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Traders work on the floor of the New York Stock Exchange, September 20, 2012.

NEW YORK | Thu Sep 27, 2012 4:44pm EDT

NEW YORK (Reuters) - The S&P 500 snapped a five-day string of declines in a broad-based rally on Thursday, as Spain's plans for economic reform eased some worries about one of the euro zone's most troubled countries.

The benchmark S&P 500 rose 1 percent, its biggest percentage gain since the Federal Reserve announced its plan for a third round of stimulus on September 13.

Spain announced a detailed timetable for economic reforms for the fiscally troubled nation and a tough 2013 budget based mostly on spending cuts.

"Any information that gives some understanding about what's going to happen is good for the market. It's small news, but more certainty is good," said Giri Cherukuri, head trader at OakBrook Investments LLC in Lisle, Illinois.

The EU's Economic and Monetary Affairs Commissioner, Olli Rehn, said Spain's detailed timetable for economic reforms goes beyond what the European Commission has asked of Spain. Rehn said it is an ambitious step forward.

Gold stocks ranked among the day's bigger gainers in the wake of Spain's news; the PHLX gold/silver index .XAU jumped 3 percent.

Adding to the rally was a last-minute push by investors to reposition portfolios ahead of the quarter's end, with the S&P 500 on track for a gain of 6.2 percent in the third quarter. Friday will be the quarter's last trading day.

"What we've seen is broadly a consolidation, but also an attempt by fund managers to position properly for the rest of the year, to be in the best sectors," said Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston.

The Dow Jones industrial average .DJI shot up 72.46 points, or 0.54 percent, to 13,485.97 at the close. The Standard & Poor's 500 Index .SPX rose 13.83 points, or 0.96 percent, to finish at 1,447.15. The Nasdaq Composite Index .IXIC gained 42.90 points, or 1.39 percent, to close at 3,136.60.

While the Nasdaq led Thursday's gains, it also led the market's declines earlier this week - its volatility possibly reflecting investors' nervousness about the U.S. economic outlook, analysts said.

Apple (AAPL.O), up 2.4 percent at $681.32, gave the biggest lift to the Nasdaq. The semiconductor index .SOX gained 2.3 percent, bolstering the Nasdaq 100 .NDX. Intel Corp (INTC.O) was up 1.9 percent at $23.09.

After the bell, U.S.-listed shares of Research In Motion (RIMM.O) surged 15 percent to $8.21 after the Canadian maker of the BlackBerry reported a smaller-than-expected quarterly loss.

On the deal-making front, Tempur-Pedic International Inc (TPX.N) agreed to buy rival mattress maker Sealy Corp (ZZ.N) for about $242 million and assume about $750 million in debt. Tempur-Pedic shares jumped 14.4 percent to $30.64, while Sealy's stock rose 2.3 percent to $2.19.

In the earnings realm, Discover Financial Services (DFS.N) reported third-quarter earnings that beat expectations - and its shares climbed 7.3 percent to $39.71.

Stocks were rising before Spain's announcement on hopes that China would take steps to spur its slowing economy.

China has severely underestimated this year's global economic slowdown, and further cuts to Chinese interest rates or bank reserve requirements will hinge on any new deterioration in the external environment, a central bank adviser said on Thursday.

U.S. economic data was mixed. A report showed initial jobless claims dropped by 23,000 to 359,000, sharply exceeding the decline of 4,000 that had been expected.

But the final read on second-quarter gross domestic product showed growth of just 1.3 percent, weaker than an expected 1.7 percent. And August durable goods orders tumbled 13.2 percent, much more than the expected drop of 5 percent.

Volume was below average at roughly 5.74 billion shares traded on the New York Stock Exchange, the Nasdaq and the Amex, compared with the year-to-date average daily closing volume of 6.53 billion.

Advancers outnumbered decliners on the NYSE by a ratio of slightly more than 3 to 1,and on the Nasdaq, about three stocks rose for every one that fell.

(Editing by Jan Paschal)

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A ''for sale'' sign is seen outside a home in New York June 19, 2012.

WASHINGTON | Thu Sep 27, 2012 10:09am EDT

WASHINGTON (Reuters) - Contracts to buy previously owned U.S. homes slipped in August due to a shortage of lower priced inventory in most of the country, an industry group said on Thursday.

The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in August, fell 2.6 percent to 99.2, but was 10.7 percent higher than last year.

July's reading was revised up to 101.9, the highest level since April 2010, when buyers were racing to use the home-buyer tax credit before the deadline, the group said.

"The performance in month-to-month contract signings has been uneven with ongoing shortages of lower priced inventory in much of the country," the association's chief economist, Lawrence Yun, said in a statement.

(Reporting by Rachelle Younglai; Editing by Neil Stempleman)

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1 of 5. A BAE Systems sign is seen outside the company's Warton site near Preston, northern England, in this file picture taken October 1, 2009.

PARIS | Thu Sep 27, 2012 5:58pm EDT

PARIS (Reuters) - Europe's EADS (EAD.PA) rejected calls on Thursday to allow extra time for negotiations over a $45 billion merger with BAE Systems (BAES.L), as brinkmanship looked set to play a key role in politically complex plans to create a new defense giant.

Fabrice Bregier, head of the Airbus planemaker unit and part of the inner circle running Franco-German-Spanish EADS, was quoted as saying it was crucial to stick to the date set by UK regulators under rules designed to protect investors.

"The importance is that opinions converge. The October 10 deadline may seem soon but it is absolutely necessary given the environment," Bregier told the French daily Les Echos in an interview to be published on Friday.

EADS (EAD.PA) and BAE are in talks to create what would be the world's largest defense company. But their efforts have become snagged on differences over control between France and Germany while there are also political concerns about jobs.

German Defence Minister Thomas de Maiziere joined France in pressing the companies to seek an extension of the UK deadline in order to give politicians more room to bridge differences.

"Perhaps we need more time. It depends on the answers for our questions and so I think we need more time," de Maiziere told reporters at a meeting in Cyprus.

France and Germany want to safeguard their influence over EADS while special arrangements will be needed to ringfence sensitive operations, including work BAE does in the United States and on Britain's nuclear submarines.

In the past two weeks, investors uncertain about the deal have stripped 4 billion euros from the value of EADS, illustrating the risk Chief Executive Tom Enders could face if he agrees to expose the stock to a further month of negotiation.

BAE shares have also shed their initial gains and analysts warn they may struggle to carry investors with them beyond October 10 if the talks show no signs of progress.

Yet with two weeks left, EADS and BAE have little incentive to seek an extension to the deadline.

Softening the deadline would ease pressure on Europe's politicians to come to an agreement acceptable to the companies while placating U.S. and UK fears of political interference.

For these reasons, experts say a bid for an immediate extension is unlikely unless there is progress. But if there is stalemate running up to the deadline, leaders of both companies could play hardball and decide to abandon the plan.

"It's normal that different points of view are expressed. Especially in an operation where states have strategic interests to preserve," Bregier told Les Echos.

"This kind of operation requires rapid decisions and it's not EADS or BAE management pushing, it's the markets and the clients, who want to know what the future of the group will be," he said adding that the current merger plan included guarantees to the United States covering its security concerns.

INFLUENCE AND TRADE-OFFS

The merger to create the world's biggest defense and aerospace company would dilute the influence of the French, German and Spanish governments in the company, prompting negotiations over their roles in the future.

German reservations include how to safeguard jobs and protect the merged firm from any future hostile takeover, a government document obtained by Reuters on Monday showed.

On Wednesday, a French government source said France would want to retain certain rights, as well.

EADS is standing firm, reiterating its "intention and current expectation" to provide further clarity by that date.

Technically, extensions to the UK stock market deadline are relatively simple and are usually granted, lawyers say.

Yet in classic European negotiating style, as seen on issues from farm subsidies to national bailouts, talks generally go down to the wire.

Raising the threat of a missed deadline, or demanding it be kept, is a tried and tested tactic in the brinkmanship so often seen among the 27 nations of the European Union.

De Maiziere called talks with his British and French counterparts on Wednesday evening "constructive".

"This is a complex situation, there are a lot of questions and conditions, nothing has (been) decided yet ... We will keep in contact," he said.

European governments all face severe spending pressures, but a stand-off between France and Germany over control of EADS is seen as the bigger roadblock, rekindling a climate of mistrust which set in during management rows from 2005 onwards.

France holds a 15 percent stake in EADS and wants to retain its right to influence group strategy. Spain owns 5 percent.

Germany is not a direct shareholder but sees the transaction as a chance to enlarge its influence. At the same time, EADS and BAE are pressing for less political influence.

Airbus's Bregier said he did not see the issue of German state participation being an issue in the talks and did not see any reason why measures could not be taken to ensure a balance with France, whose government would end up with a 9 percent share in the new group as plans stand today.

Signs of discord first emerged at the weekend when Reuters reported that France appeared to rebuff German proposals for a common position [ID:nL5E8KLN1G].

EADS and BAE have said they will offer the governments of France, Germany and Britain a "special share" in the new company, allowing them to block any future hostile takeover, but are determined to prevent any meddling in management decisions.

(Additional reporting by Michele Kambas, Adrian Croft, Rhys Jones, Gernot Heller, Mark John, Catherine Bremer; editing by Jason Neely, Bernard Orr)

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A photograph of the late singer Whitney Houston holding a Grammy Award is displayed next to one of her Grammys during a press preview of the new exhibit ''Whitney! Celebrating The Musical Legacy of Whitney Houston'', at The Grammy Museum in Los Angeles, California August 15, 2012.

LOS ANGELES | Thu Sep 27, 2012 2:53pm EDT

LOS ANGELES (Reuters) - Whitney Houston will be remembered in a star-studded Grammy televised concert as well the release of a greatest hits album and a television reality series following the singer's family as they cope with her sudden death.

Celine Dion, Usher and Jennifer Hudson were the first performers to be announced by The Recording Academy on Thursday for "We Will Always Love You: A Grammy Salute To Whitney Houston" on CBS on November 16.

The one-hour event will be taped in Los Angeles on October 11 and will also feature interviews and footage with the late singer, as well as artists sharing their memories of her.

Houston's death at age 48 from accidental drowning in a bathtub at a Beverly Hills hotel on the eve of the Grammy awards in February shocked the music world. Authorities deemed her death was also a result of heart disease and cocaine use.

The televised special will coincide with the November 13 release of a compilation album, "I Will Always Love You - The Best of Whitney Houston," featuring 16 of Houston's best-known hits and two previously unreleased songs, including a new duet of "I Look To You" with R. Kelly, her RCA record label said.

Lifetime television network will also be airing a new series starting on October 17, "The Houstons: On Our Own." It documents Houston's 19-year-old daughter Bobbi Kristina Brown, sister-in-law and former manager Pat Houston and mother Cissy, as they deal with life after the singer's death.

(Reporting By Piya Sinha-Roy. Editing by Jill Serjeant and Andre Grenon)

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1 of 9. Protesters shout slogans during a protest against cuts in public education in central Madrid September 27, 2012.

MADRID | Thu Sep 27, 2012 7:59pm EDT

MADRID (Reuters) - Spain announced a crisis budget for 2013 based mostly on spending cuts on Thursday in what many see as an effort to pre-empt the likely conditions of an international bailout.

Ministry budgets were slashed by 8.9 percent for next year and public sector wages frozen for a third year as Prime Minister Mariano Rajoy battles to trim one of the euro zone's biggest deficits.

"This is a crisis budget aimed at emerging from the crisis ... In this budget there is a larger adjustment of spending than revenue," Deputy Prime Minister Soraya Saenz de Santamaria told a news conference after a marathon six-hour cabinet meeting.

Beset by anti-austerity protests and threats of secession by the wealthy northwestern region of Catalonia, Rajoy is resisting market and diplomatic pressure to apply for a rescue, partly out of concern for national sovereignty but also because European Union paymaster Germany insists Spain doesn't need help.

The central government sees budget savings of 13 billion euros in 2013, with spending down 7.3 percent -- not including social security and interest payments -- and income rising 4 percent thanks to a 15 percent leap in value-added tax take.

The budget goes to parliament on Saturday and debates could last weeks. The country's 17 autonomous regions still must present budgets and find an additional 5 billion euros in adjustments to meet overall public deficit reduction goals.

Spain, the euro zone's fourth largest economy, is now at the center of the euro debt crisis. Investors fear Madrid cannot control its finances and question whether Rajoy has the political will to take all the necessary but unpopular measures.

Madrid is talking to EU authorities about the terms of a possible aid package that would trigger an European Central Bank bond-buying program and ease Spain's unsustainable funding costs.

Brussels has demanded an independent budget oversight body, which Economy Minister Luis de Guindos said on Thursday would be created to review budget execution. The government is still analyzing potential conditions for aid, he said.

The conservative government said tax revenue would be higher than originally budgeted in 2012 -- partly due to a hike in VAT -- allowing it to comfortably cut the public deficit to 6.3 percent from close to 9 percent last year.

Uncertainty over Spain's ability to control spending in regional governments -- which account for half of all public spending and could threaten the deficit goal -- has increased due to the Catalan demands for independence.

The autonomous region's parliament voted on Thursday to hold a referendum on independence, but Saenz de Santamaria said the region must consult the rest of the country first.

PENSIONS WILL BE REVIEWED

Pensions, earmarked by the European Commission as a key area for reform, will rise by 1 percent next year but Treasury Minister Cristobal Montoro would not be drawn on whether the government would pay an inflation catch-up which could be over 3 percent this year.

In a sign of how tight the budget is this year the government said it would use 3 billion euros from social security reserves to pay pensions in 2012.

Before the end of the year the government will announce a pension reform to restrict early retirement and to review sustainability of the pension system which could open the door to accelerating an increase in retirement age.

The deputy premier said the government would set out 43 new laws to reform the economy over the next six months and including reforms to the labor market, public administrations, energy services and telecommunications sectors.

The detailed timetable for economic reforms goes beyond what the European Commission has required and is an ambitious step forward, the EU's top economic official said on Thursday in response to the government announcements.

"The reforms are clearly targeted at some of the most pressing policy challenges," EU Economic and Monetary Affairs Commissioner Olli Rehn said in a statement.

Market reaction was cautious.

"The first impressions (of the announcements) are good, heading towards a major adjustment in spending rather than in revenues," said Jose Luis Martinez of Citigroup in Madrid.

"However, we see as too optimistic the macroeconomic assumption of 0.5 percent recession for the next year. We see a scenario with a deeper recession and if this were the case, further spending cuts will be needed."

De Guindos' statement that the 2012 budget deficit target would be met this year due to a solid increase in revenues will also be viewed with suspicion with many economists expecting the government to miss the objective.

Spending cuts continue to heap pressure on Spaniards and are likely to fuel further street protests, which have become increasingly violent as tensions rise and police use force to disperse crowds.

A quarter of all Spanish workers are unemployed and tens of thousands have been evicted from their homes since a housing bubble burst in 2008 and plummeting consumer and business sentiment tipped the country into a four-year economic slump.

The prime minister's image, both at home and abroad, has deteriorated rapidly since his party won an absolute parliamentary majority last November.

Newspaper pictures of Rajoy enjoying a cigar on Sixth Avenue in New York on Wednesday while protesters gathered in Madrid fuelled criticism of his detached attitude toward Spain's mounting problems.

(Additional reporting by Julien Toyer; Writing by Paul Day; Editing by Fiona Ortiz, Jeremy Gaunt, Paul Taylor and Giles Elgood)

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Professor Alessandro Vezzosi, Director of the Museo Ideale Leonardo da Vinci, points to details on a painting attributed to Leonardo da Vinci and representing Mona Lisa during a presentation in Geneva September 27, 2012.

GENEVA | Thu Sep 27, 2012 3:17pm EDT

GENEVA (Reuters) - A Swiss-based art foundation on Thursday unveiled what it argues is Leonardo da Vinci's original "Mona Lisa", backing its claim with evidence from a U.S. research physicist, a forensic imaging specialist and a top Italian expert on the artist.

Members of the group told a packed Geneva news conference that the portrait of a woman who appears to be some 10 years younger than the sitter in the famous painting in the Paris Louvre could only be the work of the Renaissance genius.

"The facts are overwhelming and clearly prove the authenticity of the masterpiece," said Swiss lawyer Markus Frey, president of the private Mona Lisa Foundation which insists it has no financial stake in the painting.

And Stanley Feldman, an art historian and member of the group, said that critics who have rejected any suggestion the "younger" version could be by Leonardo had never seen it. "We invite them to Geneva to study it themselves," he added.

"It is absolutely clear that neither this nor the Louvre version are copies," he said, in a clear response to British Leonardo authority Martin Kemp, who told a London newspaper last week "so much is wrong" with the foundation's painting, including that it is painted on canvas and not on wood, the artist's preferred medium.

In a luxurious 300-page publication devoted to research over 30 years on what has long been known as the "Isleworth Mona Lisa," the foundation argues that it was painted between 1503 and 1505 in Florence and never finished.

Alessandro Vezzosi, director of the Leonardo museum in the Renaissance giant's home town of Vinci in central Italy and a world-renowned expert on the artist, said he had long believed in the existence of two Mona Lisas.

The foundation's version -- which has been owned since 2008 by a private consortium -- seemed likely to be the one that was recorded in a recently discovered document from 1503 and which he had long been seeking, said Vezzosi.

SAME ENIGMATIC SMILE

Slightly larger than the Paris portrait, which is widely dubbed "the world's most famous painting," it shows a woman in an identical pose, the same enigmatic smile and with the same geometric proportions.

John Asmus, a former space scientist from the University of California who has developed digitization techniques to study art works and applied them to the Louvre Mona Lisa, said his studies indicated Leonardo also painted the "Isleworth" version.

And Joe Mullins, an FBI-trained forensic imaging specialist, showed how he had made a computerized version of the woman in the Paris portrait as she would have been 10 years earlier and found it almost identical to the newly unveiled version.

Neither Vezzosi, Asmus or Mullins are members of the foundation.

Documents prove the painting, known in French as "La Joconde" and in Italian "La Giaconda", was commissioned from Leonardo by Florentine nobleman Francesco del Giacondo as a portrait of his wife, Lisa Gherardini.

Leonardo -- also an architect, sculptor and engineer -- left Florence in 1506, apparently delivering the unfinished work to Giacondo before leaving, as documents record it was seen there some 30 years later.

According to backers of the "Younger" Mona Lisa, the Paris version was probably painted around 1516 when the painter left for France. Before he died in 1519 in a small chateau on the Loire he is known to have shown visitors a Mona Lisa.

After his death, it found its way into the collection of French King Francois 1, and from there to the Louvre.

The "younger" version first surfaced in 1913 when British art connaisseur and painter Hugh Blaker found it in a manor house in western England, recording that it had been hanging there for about 150 years.

For the next 20 years, it hung in his home in the London suburb of Isleworth, so gaining its name.

But efforts by Blaker, who died in 1936, and subsequent owners to convince the art world at large of its authenticity failed. "What we want now if for people to come and look at this with an open mind," Feldman told the news conference.

(Reporting by Robert Evans, editing by Paul Casciato)

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Ronnie Wood of the The Rolling Stones walks away after posing at the opening of the exhibition ''Rolling Stones: 50'' at Somerset House in London July 12, 2012.

LONDON | Wed Sep 26, 2012 2:17pm EDT

LONDON (Reuters) - Rolling Stones guitarist Ronnie Wood and his ex-wife Jo Wood disagreed on Wednesday over the ownership of some items due to be sold off in an art and memorabilia auction next month as well as over how the sale was billed.

Both issued statements claiming ownership of items reported to be included in an auction to be held at Julien's Auctions in Beverly Hills on October 27 that was described as a "joint sale". The two separated in 2008 and finalised their divorce in 2011.

"Ronnie was asked by Jo some time ago if he wished to add some items to an auction and he said he did not want to participate," an emailed statement from his spokesman said. "He is therefore shocked and disappointed that this auction is being misrepresented as a joint sale. This is not the case."

A spokeswoman for Jo Wood said the former model was given the items as part of the divorce settlement.

"This is Jo's auction, it includes all the items left to her following the divorce," a statement read out to Reuters over the telephone said. "She's had everything in storage for three years and can't keep it any longer. Ronnie has been kept in the loop of the sale."

Ronnie said he was "staggered" that some of the auction items were his personal belongings, which he said did not pass to Jo as part of the divorce proceedings.

"The Tour Clothes being offered belong to the Rolling Stones and are not hers to sell," the statement said.

"Ronnie feels saddened that Jo has taken this course of action and wants the public to know he has NOT teamed up with Jo on this outrageous sale."

Auctioneer Darren Julien, the owner of Julien's Auctions, has pegged the collection's initial value at $300,000 to $500,000 and said the sale would go ahead.

"It is their (Ronnie and Jo's) collection and it is part of their divorce settlement," Julien told Reuters in Los Angeles on Wednesday.

"What we are doing is selling items that have shared ownership. These are items that are clearly owned by both Jo and Ronnie," he added.

DIVORCE

The rocker, 65, and Jo, 57, separated after his widely reported relationship with a young cocktail waitress named Ekaterina Ivanova. Their divorce was finalised in February 2011.

The sale takes place ahead of the release next February of Jo Wood's memoirs that promise to reveal her tales of life as the wife of a Rolling Stone.

Part of the proceeds will go to MusiCares, the Grammys charity that offers help to people in the music industry, the auction company said in a statement.

The collection features memorabilia spanning four decades from the guitarist's work with the Rolling Stones and his earlier association with the band Faces, as well as his solo career.

Items include tour clothing, backstage passes and ephemera from various Rolling Stones tours, such as worn leather jackets and custom painted Fender Stratocasters, one depicting a Rolling Stones recording session, valued at $4,000 to $8,000, Julien's said in a statement.

Portraits of Keith Richards, Eric Clapton, and Bob Dylan, valued at $800 to $1,200 each, are also among the artwork offered by Ronnie Wood, a celebrated visual artist and painter, it said.

Wood has recently been focusing on his visual art career and in April opened a New York City art show entitled, "Faces, Time and Places", featuring portraits of Mick Jagger, Richards, Charlie Watts and other celebrities.

But he is still best known for his music and in April was inducted for a second time into the Rock and Roll Hall of Fame, with other members of Faces, including Rod Stewart and Kenney Jones.

The Rolling Stones, which Wood joined in 1975 after Mick Taylor left the band, were inducted into the Hall of Fame in 1989 and this year are celebrating their 50th anniversary.

Also up for sale at the auction are antiques, furniture and art from the Surrey, England countryside estate once shared by the couple, including an Erard harp, pegged at $4,000 to $5,000, and a bronze jockey statue by Dame Elisabeth Frink valued at $65,000 to $85,000, Julien's said on Tuesday.

(Reporting by Paul Casciato; Editing by Andrew Osborn)

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n">(Reuters) - U.S. money managers cut their equity holdings to the lowest in three months in September despite a strong rally in U.S. stock markets, increasing their allocation in bonds to the highest in four, a Reuters poll found on Thursday.

The poll of 15 U.S. fund managers taken Sept 14-26, showed a drop in the average equity allocation in a global balanced portfolio to 62.6 percent, the lowest since June, from 64.6 percent in August.

That came despite a nearly 2 percent rally in the benchmark S&P 500 so far this month and a 16 percent rally since a recent trough in June. The MSCI world stock index is also up about 2 percent this month.

Investors in the asset allocation poll, as well as strategists the Reuters global stock market poll published on Wednesday, said that the "fiscal cliff" of tax increases and spending cuts at the start of the new year have made many investors cautious.

"We feel that (the S&P 500) is more likely to see modest moves upward in the near term, potentially declining as concerns surrounding the fiscal cliff come to bear near the end of the year," said Douglas Gordon, senior investment strategist at Russell Investments.

At the same time, the average bond allocation rose to 30.1 percent in September from 27.6 percent last month.

A chunk of that came from a rise in allocations to euro zone bonds, which followed the European Central Bank's announcement on September 6 that it intended to buy peripheral euro zone bonds in an attempt to bring down yields.

"We feel that this partially mitigates downside risks but certainly doesn't remove them. Questions remain surrounding longer term structural issues in Europe," said Gordon.

But it has become clear over recent days that Spain is very close to asking for a full international bailout. Allocations to euro zone equities by U.S. fund managers slipped slightly in September.

On the whole, government bonds attracted an average 39.7 percent of the firms' model allocation, up from 38.6 percent previous month. Firms allocated 10.9 percent of their global bond investments to the euro zone, up from 9.5 percent.

Stock markets broadly have rallied over the past few months in anticipation of a third round of bond purchases from the U.S. Federal Reserve.

On September 13, the Fed announced $40 billion purchases per month of agency mortgage-backed securities, pledging it would continuing buying bonds until there was a meaningful improvement in the moribund U.S. job market.

But allocations to U.S. and Canadian stocks fell in the latest Reuters asset allocation poll, together attracting 65.1 percent of the firms' overall stock exposure, down from 66 percent in August, and the lowest since June.

Apart from the threat of the "fiscal cliff" in the U.S., slowing growth in China, Latin America, and Europe have weighed on market sentiment, said David Goerz, chief investment officer of HighMark Capital Management.

Investors also allocated more to alternate forms of credit ranging from credit default swaps to agency mortgage backed-securities, which the Fed targeted in massive quantities in its latest stimulus plan.

Such credit accounted for 16.2 percent of bond investments, up from 15.3 percent last month.

(Reporting by Sam Forgione, Rahul Karunakar, Ruby Cherian, Deepti Govind; Editing by John Stonestreet)

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