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Good morning.

From the newsroom of the Financial Times, today is Wednesday, December 19th, and this is your FTE news briefing. Today we'll be looking at what a cut in the full year outlook by FedEx means, an unexpected $180 million loss for Citigroup, and how lower oil production

might not be enough to stop a price fall.

Then the FT's Eric Platt will explain why market volatility is worrying credit investors.

I'm Eric Krupky and here's the news you need to start your day.

FedEx shares fell as much as 6% in after hours trading on Tuesday.

Investors watch FedEx results for clues about any economic slowdown.

This would show up in customers cutting back on shipping goods.

The company warned that slower global trade

and weakness in Europe would be a drag on full year earnings.

FedEx lowered the top end of the range of its expected full year earnings by about 7%.

The company said it would need to resort to cost cutting to deal with the lower forecast.

It plans to offer buyouts to eligible employees and reduce international capacity at FedEx Express.

Despite the revised outlook, the company did manage a 9.2% year-on-year rise in revenues for the quarter that ended in November.

Shares in the shipping company are down more than 26% since the start of the year.

The FT reports that Citigroup could lose as much as 180 million dollars on an Asian

hedge fund's bad currencies trade. According to a person familiar with the situation, the bank's potential losses are still dependent on negotiations with the hedge fund and the cost of unwinding the trade.

The potential losses were already included in a warning from city chief financial officer John Gersbach.

Mr. Gersbach warned that the bank would not meet a key financial target this year because of market conditions.

An oil prices fell. market conditions.

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