PRESS DIGEST - Wall Street Journal - July 13

July 13 (Reuters) - The following were the top stories in The Wall Street Journal on Monday. Reuters has not verified these stories and does not vouch for their accuracy.

* CIT Group Inc (CIT.N) officials spent the weekend trying to hash out a plan that would help calm markets and convince customers and investors that it can work its way out of a deepening liquidity crunch.

* UBS AG (UBSN.VX) is in talks with the U.S. government to settle a tax-evasion case that could require the bank to release some, but not all, the names of account holders.

* Companies that sell basic products or services could remain attractive investments as the economy heads into what many see as a jobless recovery.

* Berkshire Hathway Inc's (BRKa.N) reinsurance business, a big profit center for the company, has pulled back from catastrophic property damage, a sign of risk aversion amid cash limits.

* The retail industry's biggest trade group is launching a broad attack against Wal-Mart Stores Inc (WMT.N) for supporting congressional proposals requiring employers to help pay for health insurance, an idea that has gained political currency thanks to the backing of the nation's largest private employer.

* Australian officials warned that China's handling of espionage allegations against employees of Rio Tinto PLC (RIO.L) could fuel broader concern among foreign businesses, highlighting the risks Beijing is taking by detaining four employees of the Anglo-Australian mining giant.

* Japan's Kirin Holdings Co (2503.T) and Suntory Holdings Ltd. are in merger talks, a person close to the matter said, in a development that could lead to the creation of a huge beverage company that would rival Coca-Cola Co. in terms of sales but not profits.

* Lennar Corp (LEN.N) has identified 400 homes in Florida that have confirmed problems with defective Chinese drywall, and it has set aside $39.8 million to repair the homes, the Miami-based home builder said in a securities filing.

* The recession, plunging travel demand and a tough lending environment are battering U.S. airlines, raising the prospect of a liquidity squeeze that could lead to bankruptcy filings by winter if conditions don't improve.

* The bidding for General Motors' GMGMQ.PK Adam Opel GmbH unit is taking on the timbre of a contest between the Chinese and the Russians.

* After months of delay, the Libyan government is close to deciding whether to allow the sale of a small Canadian oil exploration firm with operations in the country, resolving a drawn-out saga that has highlighted the reasons why Libya's oil sector hasn't blossomed since it reopened in 2005.

* Japanese Prime Minister Taro Aso is expected to call a general election for Aug. 30, Japanese media reported, a move that would give the party and its coalition partner a bit of time to prepare for the battle after suffering a major defeat in a Tokyo local election Sunday.

* New research has pinpointed a gene that could improve predictions of who will develop Alzheimer's and at what age.

* The U.S. biotech industry is moving closer to a victory in Congress that would protect lucrative drugs from generic-drug competition for a lengthy period, though the issue continues to rile up lawmakers and consumer advocates.

* The Obama administration says it has been on a "learning curve" with the economic-stimulus package but has now figured out how to spend some of the available billions more quickly.

* In the latest move in its quest to compete with Google Inc (GOOG.O), Microsoft Corp (MSFT.O) is pitching five advertising companies a deal to buy its digital ad agency Razorfish.

* The European Commission will propose this week rules to increase the European Union's preparedness for natural-gas shortages, as a potential crisis between Ukraine and Russia risks affecting European supplies in the winter.

* Deyaar Development DEYR.DU, one of Dubai's largest publicly traded real-estate companies, posted a 69 percent decline in second-quarter net profit as the downturn in the emirate's property market hit sales and project delivery.

* News Corp (NWSA.O) is planning to position its MySpace unit as a Web site for accessing entertainment and related information. The plans follow other recent moves by the media giant to try to reinvigorate the social networking site as it steadily loses ground to Facebook Inc.

* Federal stimulus funding is helping community health centers nationwide deal with an influx of newly uninsured patients.

* Goldman Sachs Group (GS.N) is once again expected to report stellar earnings this week, to the envy of some rivals. The bank is scheduled to release second-quarter results Tuesday, and analysts expect net income of $3.48 a share for the quarter ended June 30.