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Morgan Stanley will purchase Citi’s interest in Smith Barney in stages, starting with a 14 percent stake for $1.89 billion. It will buy the rest by June 1, 2015.

The deal values Smith Barney at $13.5 billion.


McDonald’s sales bounce back on value deals

NEW YORK — McDonald’s said a key sales figure climbed 3.7 percent in August as the fast-food chain emphasized the value of its menu offerings amid the challenging global economy.

The world’s biggest hamburger chain said Tuesday that its breakfast menu and value items pushed up sales by 3 percent in the U.S. Last month, the figure had dipped 0.1 percent in the region after the company said its promotions had failed to drive growth.

McDonald’s has been intensifying its “messaging around value,” noted Andrew M. Barish, a Jefferies Group Inc. analyst. For example, he noted that the company ran promotions for its breakfast Dollar Menu in mid-August.


New iPhone app offered to fill looming void

SAN FRANCISCO — YouTube is being reprogrammed for the iPhone and iPad amid the latest fallout from the growing hostility between Apple and the video service’s owner, Google.

The new format debuted Tuesday with the release of a new YouTube application that will introduce more advertising and more videos on Apple’s trend-setting devices.

The changes are being made because Google Inc. and Apple Inc. didn’t renew a five-year licensing agreement that established YouTube as one of the built-in applications in the operating system that runs the iPhone and iPad.

From wire dispatches and staff reports