PRESS DIGEST - Wall Street Journal - Aug 27

Aug 27 (Reuters) - The following were the top stories in The Wall Street Journal on Thursday. Reuters has not verified these stories and does not vouch for their accuracy.

* Apple Inc (AAPL.O) is closer to launching the iPhone in China, putting the hit device into one of its biggest untapped markets.

* Tribune Co TRBCQ.PK bondholders have asked a U.S. bankruptcy judge to let them investigate Sam Zell's 2007 buyout in an effort to derail a plan that would hand the company over to its banks.

* The FDIC approved softened guidelines for private-equity firms seeking to buy failed banks, in a bid to tap a new source of capital.

* Massachusetts' chief financial regulator subpoenaed Goldman Sachs Group Inc (GS.N), demanding information on the firm's weekly trading huddles.

* New data suggest the decline in world trade flows could be bottoming out, a key condition for the global economy to emerge from recession.

* Cable-television provider Time Warner Cable Inc (TWC.N) has signed up at least seven major media companies in a test that will put television programs on the Web for paying subscribers, according to people familiar with the matter.

* Nearly 700,000 minivans, trucks and sport-utility vehicles were swapped for more fuel-efficient options under the federal government's $3 billion cash-for-clunkers program, the U.S. Department of Transportation said.

* The Obama administration's pay czar is expected to formally approve the $10.5 million pay package for American International Group Inc's (AIG.N) new chief executive as early as next week, according to people familiar with the matter.

* Taiwan said it approved a request for the Dalai Lama to visit -- an unexpected move that could disrupt a recent detente in the island's relations with China.

* The U.S. and its allies are planning to reinforce Afghan police and army units guarding Kandahar with American and Canadian troops.

* The Wall Street will be looking for evidence of a broader corporate-spending recovery when Dell Inc (DELL.O) reports earnings Thursday.

* Sirius XM Satellite Radio Inc (SIRI.O) is introducing a $120 dock that essentially turns iPhones into satellite radios, allowing the company to tap into one of the fastest-growing consumer products on the marketplace.

* Casino operator Crown Ltd (CWN.AX) has booked deep write downs on its U.S. operations, resulting in a headline net loss of A$1.2 billion ($995 million) for the year ended June 30.