PRESS DIGEST - Wall Street Journal - May 29

Tue May 29, 2012 3:17am EDT

May 29 (Reuters) - The following were the top stories in The Wall Street Journal on Tuesday. Reuters has not verified these stories and does not vouch for their accuracy.

* The celebrated revival of U.S. manufacturing employment has been accompanied by a less-lauded fact: Wages for many workers aren't keeping up with inflation.

* Former Goldman Sachs Group director Rajat Gupta could make a compelling witness at his own criminal insider-trading trial, legal experts say. Or it could be too big a gamble.

* Facebook's IPO problems have left some small investors even more glum about the overall stock market.

* Oklahoma City leaders are fretting about potential consequences for the city now that Chesapeake Energy has run into financial straits, amid low gas prices and a web of loans that entangled CEO Aubrey McClendon.

* Former U.K. Prime Minister Tony Blair told a public inquiry that News Corp chief Rupert Murdoch wielded "substantial power" in Britain but denied aiding the company's interests in exchange for political support from his newspapers.

* Concerns about Spain's ability to shore up fiscal gaps and overhaul a feeble banking system sent Spanish borrowing costs to new highs Monday, prompting a new call from Prime Minister Mariano Rajoy for European Union action to help calm markets.

* A steep drop in arabica coffee futures this year is souring prospects for the next harvest of some of the world's most coveted beans.

Coffee producers from verdant highlands of the Andes to Mexico -- where much of the world's gourmet beans are grown --say low prices mean they will have less to invest in their high-maintenance plants. This is poised to lead to smaller, lower-quality crops and higher coffee prices later this year.

* Pakistan may have to return to the International Monetary Fund for financial assistance this year amid an unstable macroeconomic situation, the nation's central bank governor said on Monday.

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