Citigroup aims to shed $400 billion of assets

NEW YORK (Reuters) - Citigroup Inc said on Friday it plans to shed $400 billion of assets within three years and boost revenue by up to 10 percent annually, in a bid to restore profitability after huge losses tied to flagging mortgage and credit markets. Vikram Pandit, who became chief executive of the largest U.S. bank in December, revealed the plans at a much-anticipated presentation to investors and analysts. He has faced growing demands to slash costs, shed poor-performing businesses, and reinvigorate a stock price down by more than half in the last year.

AIG's loss and record oil sour mood on Wall St

NEW YORK (Reuters) - Stocks fell on Friday as the price of oil set another record and concerns about the financial sector flared up again after American International Group Inc reported a massive loss. AIG's dismal results raised doubts that the end of the credit crisis was near. The world's largest insurer wrote down assets linked to subprime mortgages and said it would need to raise $12.5 billion to boost its balance sheet. Its shares fell almost 9 percent.

AIG sees no signs of mortgage asset market rebound yet

NEW YORK (Reuters) - American International Group , after disappointing with a worse-than-expected loss on Thursday, did little to buoy investor spirits on Friday, telling shareholders it does not yet see signs of a rebound in the market for mortgage assets, which have cost it dearly over the past two quarters. AIG posted a $7.8 billion first-quarter loss, surpassing the then-record $5.3 billion loss it posted in the fourth quarter, largely stemming from a decline in the value of assets linked to subprime mortgages. On Friday, shares fell more than 8 percent.

Oil hits record $126 on supply worry

NEW YORK (Reuters) - Oil jumped to a record above $126 a barrel on Friday, extending gains to more than 11 percent since the start of the month on fuel supply concerns and a rush of speculator buying. U.S. crude settled up $2.27 at $125.96 a barrel before rising to a record $126.25 in late post-settlement trade. London Brent crude gained $2.56 to settle at $125.40 a barrel, off the earlier high of $125.90.

Countrywide falls on worry over B of A merger

NEW YORK (Reuters) - Countrywide Financial Corp shares fell nearly 6 percent on Friday on renewed speculation that Bank of America Corp will renegotiate or cancel its agreement to buy the largest U.S. mortgage lender. The second-largest U.S. bank agreed in January to pay $4 billion for Countrywide, swapping 0.1822 of a share for each Countrywide share.

JVC, Kenwood to form holding company: sources

TOKYO (Reuters) - Japanese mid-sized electronics makers JVC and Kenwood Corp have agreed to integrate their businesses under a holding company in October, sources close to the matter said on Saturday. Kenwood and asset manager Sparx Group acquired a combined 30 percent stake in loss-making JVC for 35 billion yen ($340 million) last year, and Kenwood and JVC have been in talks with eyes on merging their operations under a holding company.

FedEx cuts profit forecast on fuel costs

BOSTON (Reuters) - Package delivery company FedEx Corp slashed its quarterly earnings forecast on Friday, blaming surging fuel prices and a drop in demand caused by the weak economy, sending its shares down 3 percent. Quarterly fuel costs for FedEx's fleets of purple-and-orange trucks and planes rose by more than 7 percent, or $100 million, since it set financial targets in March, moving so quickly that the company could not raise fuel surcharges fast enough to keep pace.

Mortgage credit losses could total $500 bln: Goldman

NEW YORK (Reuters) - Goldman Sachs economists expect a total of $500 billion in residential mortgage credit losses, a renewed slowdown in economic activity after the near-term boost from fiscal stimulus, and no monetary policy tightening in 2008 or 2009, according to a research note from the firm. Despite a setback in recent days, many financial market indicators have recovered substantially since the Bear Stearns/JPMorgan Chase & Co deal in mid-March, Goldman Sachs chief U.S. economist Jan Hatzius said.

March trade gap narrows on record import drop

WASHINGTON (Reuters) - A record drop in U.S. imports because of slowing domestic demand took a big bite out of the U.S. trade deficit in March despite record high oil prices. The trade gap shrank 5.7 percent in March to $58.2 billion, the Commerce Department reported on Friday, much smaller than expected. The decline reflected another strong month of U.S. exports and a record $6.1 billion drop in imports to $206.7 billion, which showed the U.S. slowdown has taken a toll on consumer and business demand for foreign goods.

Clear Channel posts weaker-than-expected profit

NEW YORK (Reuters) - Clear Channel Communications Inc posted a weaker-than-expected quarterly profit on Friday and the U.S. radio station operator said it was unclear whether a proposed buyout would be completed. Last year, at the peak of the private equity boom, Clear Channel struck a $20 billion buyout deal with private equity firms Thomas H. Lee Partners and Bain Capital.

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