Business

GM invests - szczesny
General Motors Ventures LLC has invested $7.5 million in Sunlogics PLC, a provider specializing in solar projectsthat has shifted its headquarters to Michigan and is in the process of creating 200 new jobs in Rochester Hills. photo, video

Pulte earnings - szczesny
PulteGroup Inc. of Bloomfield Hills has reported a net loss of $55 million or 15 cents per share and a 29 percent drop in revenue from home building as the company continued to suffer from the U.S.’ lengthening housing slump.

federal Mogul, BorgWarner earnings - szczesny
Two local automotive suppliers, Federal Mogul and BorgWarner, posted solid earnings for the second quarter.

EARNS-KELLOGG — Kellogg Co.’s second-quarter net income rose 14 percent on higher prices and stronger sales. The world’s biggest cereal maker raised prices to offset higher costs and is starting to see the benefit of those adjustments.AP Photos ARDJ202, 204.



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PERSONAL FINANCE:
OF MUTUAL INTEREST-MID-CAP MENTALITY
BOSTON — Stocks of smaller companies usually lead the pack in a rising market, while larger companies offer more protection when stocks are falling. Where to go when the market wavers between optimism and pessimism, as it has the past five months? Mid-cap stocks often have the resiliency to help mutual fund investors sail through the market’s back-and-forth periods. Indeed, they’re leading the market this year. Yet many ignore mid-caps when they build portfolios. We’ll discuss opportunities and risks with top fund managers. By Personal Finance Writer Mark Jewell. AP Photos.
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CEO INTERVIEW-BUFFALO WILD WINGS
Sally Smith joined Buffalo Wild Wings when it was a fledgling restaurant with about 30 locations and no procedures for how to manage its leases, franchisees, or other processes. She was named CEO a couple of years later, when the founder left to run a figure skating association and his replacement failed to show up for work. Today, Smith’s chain has grown to more than 750 restaurants and just opened its first international location, in Canada. In a recent interview she talks about how to run a sports bar, the best time to buy chicken wings, and the question she always asks job applicants. By Business Writer Christina Rexrode. AP Photo.
SMART SPENDING-KIDS BACK-TO-SCHOOL
NEW YORK — Prices on everything from socks to notebooks are rising 10 percent on average this fall, just in time for back-to-school shopping. But there are deals aplenty, and stores and manufacturers are redesigning their websites and planning new promotions to get consumers to spend more than last year. Here are five tips. By Retail Writer Anne D’Innocenzio. AP Photos.
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Business
TOP STORIES:
DEBT SHOWDOWN-ECONOMY
WASHINGTON — No matter how the debt crisis ends, it will probably be bad news for the economy. Failure to raise the federal borrowing limit could cause a default, pushing interest rates higher and maybe tipping the United States back into a recession. And even if there’s a deal, it will probably include spending cuts that could weaken the economy. “Pick your poison,” one economist says. By Paul Wiseman and Christopher S. Rugaber.
With:
DEBT SHOWDOWN- WIRELESS AUCTION
WASHINGTON —The debt ceiling battle could produce an unlikely winner: smartphone users. Senate Majority Leader Harry Reid’s plan would give the Federal Communications Commission authority to auction off highly valuable radio spectrum. The proposal would be a win for the nation’s big wireless carriers, which are struggling to keep up with the exploding use of smartphones and other devices on their networks. Reid’s proposal would raise more than $13 billion for deficit reduction. By Joelle Tessler
Also:
DEBT SHOWDOWN
WASHINGTON — House Republicans press ahead with a vote on a newly modified plan to stave off an unprecedented government default next week even though the legislation faces a White House veto threat and unanimous opposition among Senate Democrats. By Andrew Taylor.
FORD-FOCUS SHORTAGE
DETROIT — Ford Motor Co. can’t build as many hot-selling Focus compacts as it wants to because of equipment problems at a parts factory, say two people familiar with the matter. The problem has left dealers short of the cars and forced customers onto waiting lists. The Focus was Ford’s top-selling passenger car last month. By Auto Writer Tom Krisher.
MARKETS & ECONOMY:
UNEMPLOYMENT BENEFITS
WASHINGTON — The number of people seeking unemployment benefits dropped last week to the lowest level since early April, a sign the job market may be healing after a recent slump. The Labor Department says weekly applications fell 24,000 to a seasonally adjusted 398,000. That’s the first time applications have fallen below 400,000 in 16 weeks. By Christopher S. Rugaber.
PENDING HOME SALES
WASHINGTON — The number of people who signed contracts to buy homes rose for a second month in June. But the gain was not enough to signal a rebound in the weak housing market. By Economics Writer Martin Crutsinger.
AP Photos.
— MORTGAGE RATES — Fixed mortgage rates were mostly unchanged this week as credit markets showed little reaction to Washington’s impasse over raising the federal government’s borrowing limit.
— FORECLOSURE RATES — Most of the nation’s largest metropolitan areas are seeing a sharp drop in foreclosure activity as banks take longer to move against homeowners who are behind on their mortgage payments.
— WALL STREET — An unexpectedly strong report on jobs is sending stocks higher even as a stalemate continues over the U.S. debt limit.
— OIL PRICES — Oil prices held steady above $97 a barrel a day after they tumbled over $2 following confirmation that the U.S. has released emergency crude reserves.
ALABAMA COUNTY BANKRUPTCY
BIRMINGHAM, Ala. — Leaders in Alabama’s most populous county say it’s time to resolve a multi-billion dollar debt left by questionable sewer financing. The Jefferson County commission meets to consider filing what would be the largest municipal bankruptcy in U.S. history. Officials say the total value of the bankruptcy would exceed $4.1 billion. By Jay Reeves.
EARNINGS:
EARNS-OIL
NEW YORK — Soaring fuel prices led to big gains in second-quarter earnings for oil giants Exxon, Shell and BP. As they announced their windfall, oil executives said they’ll devote billions of dollars more to finding new deposits of crude oil that will eventually bring more supply to the market. A lot of their attention will be focused on the United States. By Chris Kahn. Incorporates BC-US--Earns-Exxon, BC-EU--Netherlands-Earns-Shell.
EARNS-STARBUCKS
Starbucks Corp. reports quarterly financial results after the market close. By Sarah Skidmore.
EARNS-DUPONT
NEW YORK — DuPont’s second-quarter earnings rose 5 percent as the impact of surging revenue was partly offset by acquisition costs. The chemical maker also raised its outlook for the year. By Samantha Bomkamp.
EARNS-COLGATE-PALMOLIVE
NEW YORK — Colgate-Palmolive’s second-quarter net income climbs 3 percent thanks to higher pricing, strong sales overseas and a growing market share for its toothpaste and toothbrushes. By Christina Rexrode.
— EARNS-KELLOGG — Kellogg’s third-quarter net income rose 14 percent on higher prices and stronger sales. The world’s biggest cereal maker raised prices to offset higher costs and is starting to see the benefit of those adjustments. By Sarah Skidmore.
— EARNS-STARWOOD — Starwood Hotels & Resorts Worldwide Inc.’s second-quarter net income climbs 15 percent on improving demand among business and leisure travelers. The company, whose brands include St. Regis and Sheraton, also raised its full-year earnings forecast. By Michelle Chapman.
— EARNS-AVON PRODUCTS — Cosmetics seller Avon Products Inc.’s second-quarter net income rose 23 percent, helped by higher revenue in Latin America, its largest region.
HEALTH CARE:
NATION’S HEALTH TAB
WASHINGTON — The nation’s health care tab is on track to hit $4.6 trillion in 2020, accounting for about $1 of every $5 in the economy, government number crunchers estimate. By Ricardo Alonso-Zaldivar.
EARNS-BOSTON SCIENTIFIC
Medical device maker Boston Scientific reports a nearly 50 percent increase in second-quarter profit and says it will cut up to 1,400 employees, or 5 to 6 percent of its staff, to streamline operations. By Matthew Perrone.
EARNS-BRISTOL-MYERS SQUIBB
TRENTON, N.J. — Drugmaker Bristol-Myers Squibb Co.’s second-quarter profit fell nearly 3 percent because of higher taxes and increased costs for production, marketing and administration. Sales rose 14 percent. By Linda Johnson.
— FRANCE-EARNS-SANOFI-AVENTIS — Sanofi saw its earnings slump 41 percent in the second quarter as growing competition from generic alternatives ate into sales of its more expensive drugs and offset gains from the recent acquisition of U.S. biotechnology firm Genzyme.
— BRITAIN-EARNS-ASTRAZENECA — Anglo-Swedish drug marker AstraZeneca PLC on reported nearly unchanged profit for the second quarter as it weathered a hit to sales revenue from generic competition.
— GERMANY-EARNS-BAYER — Pharmaceutical and chemical company Bayer AG says strong growth in the crop science division helped second-quarter profits rise more than 40 percent.
INDUSTRY:
SWITZERLAND-EARNS-CREDIT SUISSE
GENEVA — Credit Suisse Group said it will cut more than 2,000 jobs after its second-quarter profit dropped by half, more than expected, due to a strong Swiss franc and a plunge in trading and investment banking earnings.
— JETBLUE-UNLIMITED FLIGHTS — JetBlue introduced several new three-month, unlimited flight plans in an attempt to snare more higher-paying business travelers.
— GERMANY-EARNS-SIEMENS — Industrial machinery maker Siemens saw quarterly profits fall sharply as it took hefty hits from pulling out of a nuclear joint venture and a new cancer treatment technology failed to match hopes.
AUTOS:
EARNS-GOODYEAR
CLEVELAND — Goodyear Tire & Rubber Co., the biggest tire maker in North America, said second-quarter earnings surged 43 percent, helped by a 24 percent sales increase. By Tom Sheeran.
— GERMANY-EARNS-VOLKSWAGEN — Carmaker Volkswagen AG says net profit more than tripled in the second quarter on stronger sales in emerging markets and the United States, but its shares slumped after it warned of challenges in coming months.
— FRANCE-EARNS-RENAULT — French carmaker Renault SA said its earnings rose in the first half as higher international growth helped offset a squeeze on profitability after the disaster in Japan choked off supply chains.
— SKOREA-EARNS-HYUNDAI — Hyundai Motor’s net profit rose 37 percent in the second quarter amid record global vehicle sales, disrupted auto production in Japan and the popularity of new models in the South Korean market.
TECHNOLOGY AND MEDIA:
EARNS-SPRINT NEXTEL
NEW YORK — Sprint Nextel’s loss widened in the second quarter as it spent more to attract and keep customers, in the face of competition from AT&T and Verizon. The extra spending meant that Sprint kept adding subscribers, continuing a fragile turnaround, but investors disliked a decline in operating income and sent the stock down sharply. The country’s No. 3 wireless carrier also announced that it will be building and operating the national wireless broadband network for LightSquared, a startup financed by a hedge fund. By Peter Svensson.
EARNS-MOTOROLA MOBILITY
Motorola Mobility Holdings Inc. reports quarterly financial results after the market closes. By Peter Svensson.
— JAPAN-EARNS-SONY — Sony Corp. sank to a 15.5 billion yen ($199 million) quarterly loss, hurt by the disasters in northeastern Japan, a massive online security breach and plunging TV prices.
— JAPAN-EARNS-NINTENDO — Nintendo Co. stayed deep in the red in the latest quarter, forcing the Japanese video game giant to cut its full-year forecasts and slash prices on its new 3DS handheld device.
— EARNS-TIME WARNER CABLE — Time Warner Cable Inc. said its second-quarter profit rose 23 percent, boosted by strong results in its business services and higher revenue from residential users. By Barbara Ortutay.
— JAPAN-EARNS-PANASONIC — Panasonic slumped to a 30.4 billion yen ($389 million) quarterly loss, hit by lower sales after the earthquake in northeastern Japan, and announced the sale of part of its refrigerator and washing machine business to Chinese rival Haier.
— FRANCE-EARNS-ALCATEL-LUCENT — Alcatel-Lucent SA said it made a small profit in the second quarter and expects to hit its full-year earnings targets, but its stock slumped as revenues missed analyst forecasts.
— EARNS-MCCLATCHY — Newspaper publisher McClatchy’s second-quarter earnings fell 32 percent as advertising declined.
— EARNS-THOMSON REUTERS — News and information provider Thomson Reuters Corp. said its second-quarter net income nearly doubled thanks to growth in its professional division.
— SPAIN-EARNS-TELEFONICA — Spanish telecommunications company Telefonica says net profit slumped 27 percent in the second-quarter with falling revenue in Spain marring strong growth in Latin America.
— BRITAIN-PHONE HACKING — A senior judge opens an inquiry into Britain’s phone-hacking scandal that will start by looking at whether the country needs tougher media regulation.
INTERNATIONAL:
EUROPE-FINANCIAL CRISIS
PARIS — The French Finance Ministry says that French banks and insurers have promised to give Greece easier lending terms on (euro) 15 billion ($21 billion) in bonds they hold. The contribution of the private sector — estimated at (euro) 106 billion by 2020 — is a central part of a second rescue package for Greece, and will be supplemented by (euro) 109 billion in new loans from the eurozone and the IMF.
— ITALY-FINANCIAL CRISIS — Italy raised (euro) 8 billion ($11.4 billion) from bond markets at sharply higher interest rates as investors worry about the debt crisis reaching the eurozone’s third-largest economy.
— ASIA-ECONOMY — Surging inflation, a weak post-tsunami economic recovery in Japan and debt woes in the U.S. and Europe threaten East Asia’s economic outlook, the Asian Development Bank said.
— GERMANY-ECONOMY — Summer vacations drove Germany’s unemployment rate up to 7 percent in July, but officials said demand for skilled workers remained high.
— SKOREA-CYBERATTACK — The personal information of about 35 million Internet users in South Korea was stolen in an alleged hacking attack that originated in China.
— GERMANY-EARNS-BASF — Chemical company BASF said its ability to raise prices helped boost net profits 22 percent in the second quarter, but that its sales growth would slow in the second half of the year.
— SPAIN-EARNS-REPSOL — Spanish energy company Repsol YPF SA said second quarter profit fell 7.3 percent, less than analysts had expected, as production was hurt by Libya’s civil war and strikes in Argentina.
— NORWAY-EARNS-STATOIL — Higher oil and gas prices and the sale of a stake in a Brazilian oil field helped Norwegian oil company Statoil ASA post record profits in the second quarter of the year.
— SPAIN-EARNS-BBVA — Spanish bank BBVA said second-quarter net profit fell 7.6 percent from a year earlier as a weak domestic market offset gains in South America.