Among the business news stories for Wednesday from the Associated Press:
TOP STORIES
ECONOMY-GRIM OUTLOOK
WASHINGTON — Shoppers won’t shop. Companies won’t hire. The government won’t spend on economic stimulus; it’s cutting instead. With no clear sign of what will invigorate growth, there is mounting fear on Wall Street that the U.S. risks sliding into a long-term economic coma. By Economics Writer Paul Wiseman.
MARKETS & ECONOMY
ECONOMY-SERVICES
WASHINGTON — The U.S. service firms, which employ nearly 90 percent of the country’s work force, experienced their weakest growth in 17 months in July. The report confirms other data that show the economy is struggling two years after the recession ended. By Chris Rugaber.
FACTORY ORDERS
WASHINGTON — Businesses cut back on orders for airplanes, autos and heavy machinery in June, lowering demand for factory goods for the second time in three months. High energy prices and supply disruptions caused by Japan crisis slowed manufacturing this spring, along with the broader economy. By Martin Crutsinger.
— CHINA-US-DEBT — China’s central bank governor urged Washington to handle its debt responsibly, warning that uncertainty in the market for Treasury debt might harm a global economic recovery.
WALL STREET
NEW YORK — Stocks continued a sell-off that has turned the S&P 500 negative for the year. A report showing that the service sector grew at the weakest pace in 17 months added to investors concerns about the economy. By David K. Randall.
— OIL PRICES — Oil prices fell below $93 a barrel as investor pessimism about the U.S. economy dragged down global markets.
RETAIL
EARNS-DUNKIN’ BRANDS
CANTON, Mass. — Dunkin’ Brands Group, which went public last month, said its second-quarter earnings were nearly flat as the company focused on its U.S. expansion efforts and aggressive growth overseas.
AP Photo.
EARNS-CLOROX
Consumer products maker Clorox says its fiscal fourth-quarter net income dipped 1 percent as rising commodity costs took a toll. By Christina Rexrode.
— SINGAPORE-P&G-ECONOMY — Procter & Gamble Chief Executive Robert McDonald says his company is preparing for a period of little or no economic growth in developed countries. P&G is scheduled to announce its April-June earnings Friday.
INDUSTRY
AIRLINES-PROFITS
GENEVA — Sky-high fuel prices have shrunk the profits of the world’s airlines, the industry’s main lobby group said. The International Air Transport Association expects $1.04 billion in profit for the second quarter of 2011, less than half of the $2.88 billion in profit posted in the same period last year. John Heilprin.
EARNS-MASTERCARD
NEW YORK — MasterCard says its second-quarter profit rose 33 percent, as cardholders used their plastic more during the spring months and the company added a few new banks to its list of issuers. By Eileen AJ Connelly.
TECHNOLOGY & MEDIA
HACKING CONFERENCE-CHINA
LAS VEGAS — HACKERS- CYBERATTACKS
UNDATED — Hackers stole data from governments and U. S. corporations in an orchestrated series of global cyberattacks that lasted for more than five years, according to a report released today by a computer security firm. By Jordan Robertson and Barbara Ortutay.
EARNS-TIME WARNER
NEW YORK — Media conglomerate Time Warner says its second-quarter profit grew almost 14 percent, thanks to higher revenue from its TV channel business and movies such as “The Hangover Part II.” By Ryan Nakashima and Barbara Ortutay.
EARNS-COMCAST
NEW YORK — Comcast, the country’s largest cable TV company, is bucking the trend among cable companies by making more money from its TV subscribers. By Peter Svensson.
RIM-NEW BLACKBERRYS
NEW YORK — Research In Motion unveiled five new BlackBerrys with touchscreens, as it hopes to revive the line’s dwindling appeal in the face of competition from the iPhone and Android smartphones. By Technology Writer Peter Svensson.
DIGITAL LIFE-TECH TEST-LIVING-ROOM PC
Flat-panel TVs and PCs go great together — one is a humungous PC screen, the other gives the TV access to tons of online video. But putting a PC in the living room and controlling it from the couch has been daunting, particularly because PC makers haven’t shown much interest in making PCs for this purpose. Acer gives it a shot with the Revo, a slim, quiet model with a pop-out wireless keyboard. By Technology Writer Peter Svensson.
INTERNATIONAL
EUROPE-FINANCIAL CRISIS
MILAN — Italy’s borrowing rates touched a new euro-era high as a global market sell-off reignited fears that the debt crisis will engulf the eurozone’s third-largest economy. Spain was also under the market spotlight. By Business Writer Colleen Barry.
— JAPAN-TOYOTA — Toyota told its suppliers in Japan to prepare for ramped up production starting in 2012, signaling that the automaker is confident it’s back on a growth track.
— SWITZERLAND-INTEREST RATES — Switzerland’s central bank is taking steps to lower the franc’s exchange rate, saying the currency is “massively overvalued” and threatening the Swiss economy.
— PORTUGAL-FINANCIAL CRISIS — Portugal raised $1 billion in a short-term debt auction, and its borrowing rate dipped slightly, despite market fears that Spain or Italy may be next in line for a European bailout.
— EUROPE-ECONOMY — Retail sales in the 17 countries that use the euro rose by more than anticipated in June.
— JAPAN-KIRIN-BRAZIL — A $2.53 billion bid by Japan’s Kirin Holdings Co. for a controlling stake in Brazilian brewer Schincariol Group is failing to win over investors in either company.