Charles H. Keating Jr., whose bail was set at $5 million when he was jailed Tuesday on a grand jury indictment alleging illegal investment practices at Lincoln Savings and Loan Association, is broke and not a flight risk, his lawyers said in arguing for bail reduction. The Superior Court hearing in Los Angeles was scheduled to resume today after recessing without a ruling.

A majority of top-ranking executives in the Chicago area, 87 percent, say the United States either is headed for or already is in a recession, according to a new survey by Ernst & Young. Meanwhile, business expectations for higher sales and profits have fallen to the lowest point since the end of the 1982 recession, Dun & Bradstreet said in its latest quarterly survey.

China was told by trade negotiators that it must prove it is committed to market reforms before talks can progress on its application to join the General Agreement on Tariffs and Trade.

AT&T has received a $130 million contract to help wire Mexico with 8,000 miles of fiber optic cable and transmission equipment for long-distance calling. The network will link 54 locations in the country.

Donald Trump has failed to make a $1.1 million loan payment for the Trump Shuttle and is seeking to reschedule $245 million in loans on the airline, a top aide said.

Executives, salaried and non-union hourly workers received average base salary increases of 5.5 percent this year and can expect about the same in 1991, a survey of nearly 1,500 U.S. employers showed.