Bayer AG (BAYGn.DE) and Onyx Pharmaceuticals Inc's (ONXX.O) jointly produced drug failed its main goal to treat patients with a type of liver cancer in a late-stage trial, the companies said.

NRG Energy (NRG.N) struck a deal to buy rival GenOn Energy Inc (GEN.N) for $1.7 billion in stock, forming the largest U.S. independent power producer as the companies contend with sagging electricity prices.

Shares in U.S. power producer Calpine Corp (CPN.N) could rise as much as 50 percent if natural gas prices stay close to current depressed levels or fall further, the financial weekly Barron's said.

Major companies announcing results on Monday include McDonald's Corp (MCD.N), Texas Instruments (TXN.O), Hasbro (HAS.O) and Halliburton Company (HAL.N).

Eastman Kodak Co (EKDKQ.PK) has lost an appeal of a patent dispute over digital image preview technology with Apple Inc (AAPL.O) and Research In Motion Ltd (RIM.TO), which could set back the one-time photography giant's efforts to raise money in bankruptcy by selling patents.

Federal Reserve Bank of Chicago releases its Chicago Fed National Activity Index for June at 1230 GMT. The index read -0.45 in May.

Amazon.com Inc (AMZN.O) plans to expand its mobile platform and broaden its offering of devices beyond e-readers and the Kindle Fire tablet, analysts, developers and retail partners said ahead of results next week from the world's largest Internet retailer.

U.S. prosecutors and European regulators are close to arresting individual traders and charging them with colluding to manipulate global benchmark interest rates, according to people familiar with a sweeping investigation into the rigging scandal.

DreamWorks Animation SKG Inc (DWA.O) beat rival bidders to buy Classic Media for $155 million to strengthen its array of entertainment characters, which will now include "Casper" and "Rudolph the Red-Nosed Reindeer," the Wall Street Journal said.

European shares .FTEU3 fell 1.4 percent on Monday, led by euro zone banking stocks, after Spain's financial outlook took a fresh turn for the worse. The euro extended losses to hit a fresh two-year low against a broadly stronger dollar.

Tiny Murcia was on course on Sunday to be the second Spanish region to request help from the central government to keep it afloat, as media reported half a dozen local authorities were ready to follow in the footsteps of Valencia.

On Friday, the Dow Jones industrial average .DJI was down 120.79 points, or 0.93 percent, at 12,822.57. The Standard & Poor's 500 Index .SPX was down 13.85 points, or 1.01 percent, at 1,362.66. The Nasdaq Composite Index .IXIC was down 40.60 points, or 1.37 percent, at 2,925.30.

(Reporting by Atul Prakash; Editing by Ruth Pitchford)

• A Permanent Economic Emergency