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AP Business NewsBrief at 4:14 a.m. EST(AP Online Via Acquire Media NewsEdge) Source: Citi-gov't aid deal may come this weekNEW YORK (AP) _ Citigroup Inc.'s bid to boost its equity capital could result in the federal government raising its stake in the troubled bank this week to as much as 40 percent, a person familiar with the talks said. Citigroup already has received $45 billion in U.S. bailout money made up primarily of debt-like preferred shares, plus federal guarantees to cover losses on some $300 billion in risky investments. It also has transferred control of its Smith Barney brokerage to Morgan Stanley in return for $2.7 billion, and has prepared itself for more asset sales by splitting in two _ effectively undoing the merger that created Citigroup a decade ago. RBS posts huge loss; unveils restructuring programLONDON (AP) _ The Royal Bank of Scotland posted Thursday a record net loss of 24.14 billion pounds ($34.4 billion) for 2008 _ the biggest in British corporate history _ and unveiled a massive restructuring program that will hive off many of its international businesses. Britain's second largest bank, which has already been part-nationalized under bailout packages worth more than 20 billion pounds, also said it will offload 325 billion pounds of toxic assets into a government insurance program. Swiss bank UBS replaces CEO overnightZURICH (AP) _ Troubled Swiss bank UBS AG has switched chief executives in a sudden move. The bank says Oswald Gruebel is taking over immediately from Marcel Rohner who is resigning. Asia stocks fall amid doubts about US bank planHONG KONG (AP) _ Asian stocks retreated Thursday, with benchmarks Hong Kong and South Korea sinking about 1 percent, after an early rally faded amid doubts about a U.S. plan to stabilize banks and worsening prospects for global companies. Japanese shares, higher in the morning, closed little changed even as the weakening yen hovered near three-months lows against the dollar, easing pressure on exporters. China's markets took the day's biggest beating as enthusiasm for Beijing's stimulus measures runs low and the economic outlook remains grim. Big banks face 'stress tests' from regulatorsWASHINGTON (AP) _ The Obama administration hopes to restore confidence in the nation's ailing financial sector by subjecting 19 of the largest banks to "stress tests" that will gauge whether each institution has adequate capital to survive a severe downturn. Banks that need new funds will be given six months to obtain it from the private sector or, failing that, from the federal government's $700 billion bank rescue program, the Treasury Department said Wednesday. Old Navy's new ad campaign heavy on 'quirky'NEW YORK (AP) _ Clothing retailer Old Navy, the overtly quirky Gap Inc. offshoot, is launching a new ad campaign Thursday with a flier patterned like a celebrity magazine, a bevy of mock-models it is calling "Supermodelquins" and a renewed focus on its target market of young moms. The move is part of an effort to reverse slumping sales at the chain. As consumers cut back on discretionary spending and hunt for bargains, Old Navy, long known for its value offerings, seems well poised. But tough competition and an unfocused brand message have hurt its results. American Airlines plans furloughs on April 1FORT WORTH, Texas (AP) _ American Airlines Inc. is telling flight attendants that it intends to furlough up to 410 of them on April 1 if it does not have enough volunteers for early leaves, retirements and other programs. The Dallas Morning News reported in its online edition Wednesday that The Association of Professional Flight Attendants says the airline told the 410 most junior of its members that they were subject to furlough. Report: Toyota to cut annual output to 6.3 millionTOKYO (AP) _ Toyota Motor Corp. aims to make 6.3 million vehicles in the fiscal year starting in April, a 27 percent drop from its peak output last fiscal year, Kyodo news agency reported Thursday. Toyota said the news report is not based on official information released by the company. Amid a deepening global economic downturn, the automaker has not yet unveiled output goals for the upcoming business year, said spokeswoman Ririko Takeuchi. Lend Lease to cut 1,700 jobs after half-year lossSYDNEY (AP) _ Australia's largest property developer Lend Lease Corp. said Thursday it will cut 1,700 jobs _ or 14.5 percent of its global work force _ after it posted a loss of 596 million Australian dollars ($387 million) for the first half of the fiscal year. Following the announcement of the results of the six months ending Dec. 31, Lend Lease also said that its managing director Greg Clarke will step down after six years at the company's helm. Home sales sink unexpectedly, lowest since 1997WASHINGTON (AP) _ Sales of existing homes sank unexpectedly last month to the lowest level in nearly 12 years as potential buyers worried about their jobs and awaited details of President Barack Obama's plans to stabilize the housing market. But the banking industry's teetering fortunes and mounting job losses could stall any recovery. Falling prices and low mortgage rates don't make much of a difference for people who are out of work _ or fearful of losing their jobs. Copyright ? 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. |