* The U.S. Federal Reserve is expected to announce a fresh round of bond buying on Wednesday as part of its efforts to support a fragile economic recovery threatened by political wrangling over the government's budget.

* Negotiations to avert the "fiscal cliff" ahead of a year-end deadline intensified as President Barack Obama and U.S. House of Representatives Speaker John Boehner spoke by phone on Tuesday after exchanging new proposals.

* India's government announced an inquiry into lobbying practices by Wal-Mart Stores Inc. (WMT.N) on Wednesday after a report that the giant retailer had pressed U.S. lawmakers to help gain access to foreign markets.

* Costco Wholesale Corp (COST.O) posted a 30 percent rise in quarterly profit, beating expectations, as the largest U.S. warehouse club chain saw sales rise and got a lift from higher membership fees.

* Chesapeake Energy Corp (CHK.N) on Tuesday agreed to sell most of its remaining natural gas processing and gathering assets for $2.16 billion as it continues to sell assets to pay down its heavy debt load.

* Sprint Nextel Corp (S.N) is in talks with Intel Corp (INTC.O) and Comcast Corp (CMCSA.O) to buy out their stakes in the U.S. wireless provider Clearwire Corp (CLWR.O), two people familiar with the matter said on Tuesday.

* European shares steadied in early trade on Wednesday, keeping alive their sharp three-week rally as investors bet the Fed would deliver on stimulus.

* The Dow Jones industrial average .DJI closed up 78.56 points, or 0.60 percent, at 13,248.44 on Tuesday. The Standard & Poor's 500 Index .SPX was up 9.29 points, or 0.65 percent, at 1,427.84 - its highest since November elections. The Nasdaq Composite Index .IXIC was up 35.34 points, or 1.18 percent, at 3,022.30.

(Reporting by Atul Prakash; editing by Patrick Graham)

• A Permanent Economic Emergency