Business Highlights

AIG's Benmosche tells employees he plans to remain

NEW YORK (AP) — American International Group Inc.'s CEO Robert Benmosche said Wednesday he plans to stay in his job at the embattled insurer.

Benmosche announced his intentions in a letter to employees released by AIG following a report in The Wall Street Journal saying he was threatening to quit. The Journal said Benmosche has been frustrated by heavy government scrutiny and cumbersome restrictions on executive pay.

AIG is in the process of trying to sell assets, streamline its operations and improve profitability in an effort to repay the government after being bailed out last fall at the peak of the credit crisis.

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Geithner encouraged by moves in Japan, China

TOKYO (AP) — Treasury Secretary Timothy Geithner said Wednesday he's encouraged by efforts in Japan and China to spur domestic demand instead of relying so heavily on American consumers — a shift that will contribute to more stable global growth.

Geithner said he sees broad recognition among governments to create policies that will lead to more balanced, sustainable growth and avoid the kind of dangerous imbalances that contributed to the world recession.

Economic cooperation is expected to be a key agenda item during President Barack Obama's visit to Tokyo on Friday and Saturday that will also address security and climate change. Japan is Obama's first stop on an Asian tour that will take him to China and South Korea next week after attending the Asia-Pacific Economic Cooperation summit in Singapore this weekend.

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Stocks rise as traders bet on low rates, China

NEW YORK (AP) — More signs that interest rates will remain low and upbeat economic news from China gave investors more reason to keep buying stocks Wednesday.

Federal Reserve officials signaled in speeches late Tuesday that a recovery in the economy is likely to be weak. Investors took that as another sign that policymakers will hold interest rates low to help resuscitate growth. The Dow rose 44.29, or 0.4 percent, to 10,291.26.

Expectations of low rates weighed on the dollar and gave a boost to commodities. Oil and gold held their advances even after the dollar pulled off of a 15-month low.