By Daniela Silberstein Dec. 18 (Bloomberg) -- U.S. stock-index futures advanced as investors speculated President-elect Barack Obama and Treasury Secretary Henry Paulson will step up efforts to prevent the recession from deepening. General Electric Co. rose 1.6 percent in Germany after an adviser said Obama may ask Congress next year to approve a stimulus plan of around $850 billion and people familiar with the deliberations said Paulson may push for the second half of a $700 billion bank rescue program. Exxon Mobil Corp. gained 1.8 percent as crude oil rebounded from its lowest level in more than four years. The Standard & Poor’s 500 Index has posted its biggest drop since 1937 this year as credit losses and writedowns at the world’s largest banks surpassed $1 trillion and the U.S., Europe, and Japan entered the first simultaneous recessions since World War II. Reports today may show the U.S. economic outlook dimmed and manufacturing in the Philadelphia region contracted, according to economists surveyed by Bloomberg. Futures on the S&P 500 expiring in March rose 0.1 percent to 904.3 at 12:15 p.m. in London. Dow Jones Industrial Average futures added 0.3 percent to 8,805. “Government interventions to support the economy are starting to make an impact,” said Andreas Nigg, who helps oversee $39 billion as a fund manager at Vontobel Asset Management in Zurich. “We may still see a Christmas rally.” Europe, Asia European stocks swung between gains and losses as lower forecasts from ASML Holding NV and Carrefour SA offset speculation that Obama’s plan will boost the global economy. The MSCI Asia Pacific Index advanced to a six-week high, led by financial companies, on speculation lower interest rates will help revive economic growth. Obama may ask Congress next year to approve a stimulus plan of around $850 billion, an amount that has grown as the U.S. economy sinks deeper into recession, an adviser to the president-elect said. Obama’s transition team believes that the amount is necessary to reverse rising unemployment, said the adviser, who spoke on condition of anonymity. Paulson could soon exhaust the first $350 billion with the bailout that President George W. Bush’s administration has pledged for General Motors Corp. and Chrysler LLC. The Treasury chief is discussing with aides strategies to seek congressional approval for the rest of the Troubled Asset Relief Program, people familiar with the deliberations said. GE, Exxon GE, the world’s biggest maker of power-generation equipment, advanced 1.6 percent to $17.66. Exxon, the world’s largest publicly traded oil company, increased 1.8 percent to $82.52. ConocoPhillips gained 0.9 percent to $53.91. Crude oil for January delivery rose as much as 2.1 percent to $40.90 a barrel in New York on speculation Obama’s stimulus package will boost energy demand as OPEC cuts supply. GM added 0.2 percent to $4.38. The biggest U.S. automaker, Chrysler and Ford Motor Co. will shutter about 59 factories over the next month as they struggle to adapt to the worst sales in 26 years and await a verdict on a U.S. rescue of the industry. Without $14 billion in federal aid, they will be out of money by early 2009, the carmakers say. The Conference Board’s index of leading indicators, a measure of the economy’s direction over the next three to six months, fell 0.4 percent in November, after a 0.8 percent decline in October, according to the median forecast in a Bloomberg survey. Philadelphia Fed The Philadelphia Federal Reserve’s gauge of manufacturing probably declined to minus 40.5 in December, the lowest since October 1990. The two reports will be released at 10 a.m. New York time. A Labor Department report at 8:30 a.m. may show 558,000 workers filed first-time claims for unemployment insurance benefits last week. The number of applications jumped to a 26- year high of 573,000 the prior week. Take-Two Interactive Software Inc. tumbled 15 percent to $10.31 after the publisher of the “Grand Theft Auto” video games unexpectedly projected a first-quarter loss and a profit shortfall for fiscal 2009. MEMC Electronics Materials Inc. fell 3.9 percent to $16.01. The maker of silicon wafers for the solar industry reduced its sales forecast, saying revenue will be as much as $425 million in the fourth quarter. That trailed the average estimate of $485 million from analysts in a Bloomberg survey. To contact the reporter on this story: Daniela Silberstein in Zurich at dsilberstei2@bloomberg.net.

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