:00:00. > :00:00.Those are the latest headlines from BBC World News. Now for the latest
:00:00. > :00:20.financial news with Sally. A blow for banking giant Citigroup
:00:21. > :00:27.as it fails a stress test by the Federal Reserve.
:00:28. > :00:28.Plus the rise and rise of Etihad. How Abu Dhabi's booming airline is
:00:29. > :00:41.muscling in on the European market. Welcome to World Business Report.
:00:42. > :00:43.I'm Sally Bundock. Also in the programme: what can Malaysian
:00:44. > :00:50.Airlines do to rebuild its reputation. We get expert advice.
:00:51. > :00:53.We start with global banking giant Citigroup which once again faces
:00:54. > :00:59.questions about how it is run and the risks it takes. Citi has failed
:01:00. > :01:03.an annual "stress test" by the US Federal Reserve, designed to stop a
:01:04. > :01:06.repeat of the 2008 crisis. The Fed pointed to "multiple deficiencies"
:01:07. > :01:11.in the bank's financial planning practices. And it has vetoed Citi's
:01:12. > :01:13.plans to hand money back to shareholders this year by raising
:01:14. > :01:17.its dividend and buying back shares. That's a big blow to the bank's
:01:18. > :01:22.drive to win back the confidence of investors. The Fed's announcement
:01:23. > :01:25.came after the closing bell on Wall Street but Citi's shares were down
:01:26. > :01:28.more than 5% in after`hours trading wiping around $8 billion off the
:01:29. > :01:38.value of the company and signalling a rocky days trading ahead today.
:01:39. > :01:51.Citi was not the only organisation singled out but was by far the
:01:52. > :01:54.biggest as Michelle Fleury explains. The good news is the Federal Reserve
:01:55. > :01:58.has approved the plans of 25 of America's largest financial
:01:59. > :02:02.institutions. The bad news is that Citigroup was among the five that
:02:03. > :02:15.failed. The Fed said it had followed the track fallen short. Citigroup
:02:16. > :02:21.boss said the company was deeply disappointed. The problem is, this
:02:22. > :02:28.is not the first time the bank has fallen short. The last time was two
:02:29. > :02:31.years ago and then it hastened the departure of the chief executive at
:02:32. > :02:37.the time. Today, Citigroup is the largest US lender to fail the stress
:02:38. > :02:44.test but it was not the only one. The US arm of HSBC and Royal Bank of
:02:45. > :02:50.Scotland. So what have we learnt from the results of these stress
:02:51. > :02:52.test? With some notable exceptions, America's largest financial
:02:53. > :02:58.institutions are in better shape today than they were going into the
:02:59. > :03:04.Pennetta crisis. `` financial crisis. We're also looking today at
:03:05. > :03:07.the rise of Etihad Airways. The Abu Dhabi`based airline could be
:03:08. > :03:11.poised to take control of European budget carrier Air Berlin which it
:03:12. > :03:14.already has a major stake in. We may get news of that along with Air
:03:15. > :03:17.Berlin's annual results, which are out shortly. It would be the latest
:03:18. > :03:18.aggressive move by the Gulf airline into the European market, a trend
:03:19. > :03:31.that has European rivals worried. Air Berlin is a troubled airline. A
:03:32. > :03:36.low`cost carrier, it has been outcompeted in Europe by other
:03:37. > :03:40.airlines and has been running at a loss. Etihad currently owns a stake
:03:41. > :03:46.in it and according to reports in the German media, the Abu Dhabi
:03:47. > :03:50.carrier is repairing to increase its stake. This would make Etihad the
:03:51. > :03:56.single biggest shareholder. What does he had wanted with Air Berlin?
:03:57. > :04:00.Etihad is getting inside the European market. It can use this
:04:01. > :04:05.market to feed into international services. From there it can take
:04:06. > :04:10.passengers into the far east and Austral Asia. Etihad has taken
:04:11. > :04:22.stakes in other airlines. It bought a four to% share of Air Serbia. It
:04:23. > :04:26.says it could soon take a big stake in an Italian airline which would
:04:27. > :04:32.please the carrier very much because it would provide the cash it needs
:04:33. > :04:36.to play down its debt pile. But other European carriers would like
:04:37. > :04:46.to stop Etihad from muscling in on their market. It is primarily Times
:04:47. > :04:51.who is raising this argument. They believe it is circumventing law by
:04:52. > :04:58.bypassing government funding. It is using government funding from an
:04:59. > :05:03.entity outside of the EU and they are not sure if that complies with
:05:04. > :05:08.the letter of the EU law. Etihad will need the approval of the EU if
:05:09. > :05:14.it is to extend its stake in Air Berlin all by a stake in the Italian
:05:15. > :05:18.airline. But regulators seem to have a stark choice. Either to except
:05:19. > :05:24.Etihad's increasing ownership of European airlines or risk seeing
:05:25. > :05:27.troubled airlines going to the wall. Let's stay with the airline industry
:05:28. > :05:30.and turn to one of our top stories here on BBC World News ` which is
:05:31. > :05:35.the search for Malaysian Airlines flight 370. On Wednesday US lawyers
:05:36. > :05:41.filed preliminary papers for lawsuits against both the airline
:05:42. > :05:44.and plane maker Boeing. Whoever is found to be liable ` the damage to
:05:45. > :05:50.the reputation of Malaysian Airlines is already huge. So what can they do
:05:51. > :06:00.to try and rebuild it? Ian Henderson is from AML Group which specialises
:06:01. > :06:04.in brand management. We are all still extremely concerned and
:06:05. > :06:12.worried and feeling for those families who are waiting for news.
:06:13. > :06:16.But in terms of how Malaysian airlines have handled this
:06:17. > :06:21.situation, what is your take on that? This is an impossible
:06:22. > :06:28.communications task because the families want information. The
:06:29. > :06:34.textbook approach of being transparent and open is difficult to
:06:35. > :06:38.work. They have done a lot of things right. They have taken the colour
:06:39. > :06:49.out of their logos and social media feeds. It is small but respectful.
:06:50. > :06:54.They have done something is badly. On the whole, they have done it
:06:55. > :06:58.pretty well. It is interesting because here at the BBC we have been
:06:59. > :07:10.covering this from day one and a lock of the coverage has been about
:07:11. > :07:14.the frustration. Families and those protesting field the airline could
:07:15. > :07:17.have handled it better. Of course. They need somewhere to vent that
:07:18. > :07:22.frustration and that is understandable. If we were advising
:07:23. > :07:28.the airline it would be... They are a victim too. To stand alongside the
:07:29. > :07:34.families instead of in opposition. To make it clear that they have lost
:07:35. > :07:39.people as well. They are a victim. I think that is a very sensible and
:07:40. > :07:45.strong and tenable position to take. Hopefully in the new future we will
:07:46. > :07:50.find MH370 but once this has moved on as a story and there are answers
:07:51. > :07:55.out what has happened, in the long`term how does Malaysian
:07:56. > :08:00.airlines rebuild its reputation? When it comes to an airline, trust
:08:01. > :08:06.is a key issue for passengers. Safety is the big unspoken in
:08:07. > :08:10.airline brand management. In a way, if they are seen as victims, that
:08:11. > :08:14.helps the long`term damage to the brand. Airline brands are about
:08:15. > :08:20.looking after people. About caring for people. The more that they can
:08:21. > :08:25.be seen to be doing that, helping the families, as I think they are
:08:26. > :08:30.doing to a great extent, it is almost an opportunity to show how
:08:31. > :08:33.much they care. To show how much they can do for people which is what
:08:34. > :08:39.airline brands are all about. And give very much. Here on the BBC we
:08:40. > :08:43.will keep you up`to`date with the news as we get it on that story.
:08:44. > :08:47.In other news. The IMF could announce a bailout for Ukraine as
:08:48. > :08:50.early as today. Talks between the two sides concluded on Wednesday as
:08:51. > :08:53.Ukraine announced it would increase gas prices for domestic customers by
:08:54. > :08:56.50%, bowing to IMF pressure to remove subsidies. Ukraine says it
:08:57. > :09:00.needs a bailout of between 15 and 20 billion dollars amid fears it will
:09:01. > :09:04.default on its debts. The maker of the hit mobile phone
:09:05. > :09:14.game Candy Crush Saga saw it shares tumble on their debut on the New
:09:15. > :09:18.York Stock Exchange. King Digital shares ended down almost 16%. Candy
:09:19. > :09:22.Crush was the most downloaded free mobile app last year but investors
:09:23. > :09:24.are concerned it could be a "one hit wonder".
:09:25. > :09:26.The global launch of Samsung's latest smartphone is being upstaged
:09:27. > :09:29.by South Korean mobile network companies. SK Telecom, South Korea's
:09:30. > :09:32.largest mobile carrier, will start selling the Galaxy S5 today. That's
:09:33. > :09:34.two weeks before the scheduled sales launch on April 11. Two rival
:09:35. > :09:38.operators are also releasing the phone early. The move is a bid to
:09:39. > :09:40.get around 45`day bans on signing up new customers ` imposed by
:09:41. > :09:52.regulators for breaking competition rules ` which coincide with the S5's
:09:53. > :09:55.official launch. Many of the stocks are sliding in
:09:56. > :09:59.Asia today, Tencent is among them. A lot of that is to do with the
:10:00. > :10:04.sentiment about Candy Crush. Facebook shares were hit hard on
:10:05. > :10:09.Wall Street as well. The yen is at a one week high against the dollar.
:10:10. > :10:17.You can see in the US, we saw falls across the board. Today we will get
:10:18. > :10:18.the final reading on US GDP. I will see you soon to review the papers in
:10:19. > :10:33.a few minutes. We will get her papers in a while
:10:34. > :10:36.but first Nick Clegg and Nigel Farage have gone head`to`head in the
:10:37. > :10:40.first of two broadcast debates about Britain's future in the European
:10:41. > :10:44.Union. The Liberal Democrat leader insisted Britain was better off in
:10:45. > :10:50.Europe. But the UKIP leader accused Mr Clegg of being part of a tired
:10:51. > :10:51.status quo defending a crumbling EU. Garnier's report contains flash