The world's largest industrial takeover was in tatters after General Electric, the US conglomerate, refused to make more sacrifices to persuade the European Commission to approve its $42 billion bid for Honeywell.
The Commission said the remedies proposed by GE were insufficient to resolve competitive concerns.
Japan said it would not bow to Chinese demands to drop import curbs that have sparked a trade row.
China last month slapped 100 per cent punitive tariffs on imports of Japanese vehicles, mobile phones and air conditioners.
Beijing said it was in retaliation for Japan's imposition of emergency, temporary curbs on shiitake mushrooms, leeks ands rushes for traditional tatami mats.
British Telecoms equipment maker Marconi Plc announced a further 4,000 job cuts and said operating profits would halve this year as its financially stretched customers reined in orders.
It added that the first quarter had been tougher than it had anticipated less than two months ago.
Dow Chemicals, the world's largest chemical group, warned that second-quarter earnings would likely fall below its earlier expectations of 35-45 cents a share due to weakening global demand.
Nevertheless, earnings would still fall within earnings expectations and post significant improvement over the first quarter.
Gazprom, the Russian gas giant, returned to the black for the first time in three years with net profit of $9.9 bln under international accounting standards.
The figure was below some analysts' expectations and driven by a sharp rise in gas export prices and a one-off tax gain.
