THE NEWS WRAP: NAB chairman warns Australia faces modest economic outlook

The chairman of National Australia Bank, Michael Chaney, has painted a lukewarm outlook for the Australian economy, saying the country is faced with “at best” modest economic growth and rising unemployment.

“Business conditions are subdued and, unless economic reform and restructuring continue, are likely to remain so,” he told shareholders at the company’s annual general meeting.

“That is the challenge facing governments and all participants in the economy.”

Zuckerberg to sell shares in Facebook

Facebook chief executive Mark Zuckerberg is to sell a part of his stake in the company as part of a new share offering by the social media giant.

The company said in a regulatory filing it would sell 70 million shares in a follow-on offering to the huge initial public offering in May 2012.

Of that, Zuckerberg will sell around 41 million shares, mainly to satisfy his tax obligations, it said. The sale will have little impact on his control of the company, however.

The 27 million new shares at Facebook’s latest closing price of $US55.57 would raise some $US1.5 billion for the company “for working capital and other general corporate purposes,” the statement said.

Ksubi jeans placed in receivership

Australian jeans fashion label Ksubi has been placed in receivership, the ABC reports.

It says receivers have been appointed to find a buyer for the denim and street wear brand that’s been operating for 13 years.

The action follows other Australian fashion labels that have faced financial difficulty this year, including Lisa Ho and Collette Dinnigan.

Markets

The Dow Jones Industrial Average is up 0.1% at 16,177.47 points while the Australian dollars is up at 88.6 US cents.