Among the business news stories for Friday from the Associated Press:

TOP STORIES:
WALL STREET
NEW YORK — Stocks are falling again on more fears of economic weakness in the U.S. and Europe’s debt crisis. A U.S government report that hiring improved in July sent stocks sharply higher just after the market opened. The rally lasted less than a half-hour. By Daniel Wagner.
ECONOMY
WASHINGTON — Hiring picked up slightly in July and the unemployment rate dipped to 9.1 percent. The modest improvement may quiet fears of another recession.
With:
— GLANCE — By the numbers that exams the data.
Also:
— OBAMA-UNEMPLOYED VETERANS — President Barack Obama is asking Congress to approve new initiatives to help some of America’s 1 million unemployed military veterans find work, including tax credits for companies that hire out-of-work vets.
MARKETS & ECONOMY:
— OIL PRICES —Oil prices fell slightly amid fears that a slowing global economy will weaken demand for crude. They recovered from earlier lows on reports of an explosion at a pipeline in Iran.
EARNINGS:
EARNS-PROCTER & GAMBLE
CINCINNATI — Procter & Gamble’s fourth-quarter revenue and net income jumped by double digits on strong sales in emerging markets such as China and India. But the world’s largest consumer products company sees things slowing down this quarter as the U.S. and other developed economies struggle. By Dan Sewell.
EARNS-FANNIE MAE
WASHINGTON — Government-controlled mortgage company Fannie Mae says its second-quarter loss widened as it continues to seek out loan modifications to help lower defaults amid the ongoing difficulties in the housing and mortgage markets. By Michelle Chapman.
EARNS-BERKSHIRE HATHAWAY
Berkshire Hathaway Inc. reports quarterly financial results after the market close.
INDUSTRY:
FDA-TOBACCO-KESSLER-Q&A
More than 15 years have passed since David Kessler first worked to regulate the tobacco industry as a Food and Drug Administration commissioner, and much has changed. The federal agency can now ban some ingredients and limit marketing, and the largest tobacco companies pay states billions of dollars a year toward health care and smoking cessation. Then again, much has stayed the same. More than 20 percent of Americans — or 46 million people — still smoke, and the rate seems to have stopped dropping. Kessler, a doctor and professor, spoke recently with The Associated Press about the challenge of tobacco control in the United States. By Michael Felberbaum.
MATTEL-BRATZ
SANTA ANA, Calif. — The first salvo was fired years ago when toy giant Mattel Inc. sued MGA Entertainment Inc. over ownership of the hugely popular Bratz fashion doll line. The turbulent legal chapter has now ended with a federal judge ordering Mattel to pay its rival more than $309 million. Mattel said it was disappointed with the decision Thursday and was evaluating its next steps. The El Segundo-based toy maker can appeal. By Gillian Flaccus.
SHELL-ARCTIC DRILLING
JUNEAU, Alaska — A federal agency’s decision allowing Shell Oil Co. to move a step closer to drilling in Arctic waters off Alaska has drawn criticism from conservationists, expressing concern over how any potential oil spill would be handled. By Becky Bohrer.
TECHNOLOGY & MEDIA
EARNS-VIACOM
NEW YORK — Viacom’s net income rose 37 percent in the third quarter. The owner of MTV, Comedy Central and Paramount Pictures benefitted from growing advertising sales and higher fees from cable TV and other companies that carry its channels. By Barbara Ortutay.
— BRITAIN-PHONE HACKING — A lawyer for several alleged victims of tabloid phone hacking says lawsuits will soon be filed against a second newspaper group, Trinity Mirror PLC.
INTERNATIONAL
EUROPE-FINANCIAL CRISIS
FRANKFURT, Germany — The eurozone’s debt crisis battered markets once again, challenging vacationing European leaders to find a way to keep the turmoil from pushing Spain and Italy to a financial collapse that would hit an already-waning global recovery.
— ITALY-FINANCIAL CRISIS — Official figures show the Italian economy grew by only 0.3 percent in the second quarter from the previous three-month period, providing further evidence that the recovery is running out of steam at a time when financial markets are fretting over its ability to pay down its debts.
— SPAIN-FINANCIAL CRISIS — Spain’s central bank says the country’s economy rose 0.2 percent in the second quarter, down modestly from the 0.3 percent growth recorded in the previous three month period.
— GERMANY-ECONOMY — German government data show that industrial production in Europe’s biggest economy declined by 1.1 percent in June compared with the previous month.
— EARNS-ALLIANZ — German insurer Allianz SE says net profit slipped 7.4 percent in the second quarter as the company took a loss of $460 million on its holdings of Greek bonds.
— BRITAIN-RBS — Royal Bank of Scotland Group PLC swung to a second-quarter loss as it wrote down the value of its Greek bond holdings by a massive $842 million.

Nation World late morning
NEW & DEVELOPING
— OBAMA-UNEMPLOYED VETERANS — Obama is calling on Congress to pass tax credits for companies that hire unemployed military veterans. Obama to speak late morning
ADDS:
— WALL STREET
— EAST AFRICA-FAMINE
TOP STORIES
WALL STREET
Even a good jobs report isn’t good enough to calm financial markets. The Dow Jones industrial average turns lower as traders focused on Europe’s latest efforts to contain the region’s debt crisis. The Dow had jumped as many as 171 points shortly after the opening bell on report that U.S. hiring picked up last month. By midmorning it was down 42 points. By Daniel Wagner.
AP photos.
ECONOMY
WASHINGTON — Hiring picked up slightly in July and the unemployment rate dipped to 9.1 percent. The modest improvement may quiet fears of another recession a day after Wall Street posted its worst losses in nearly three years. Employers added 117,000 jobs last month, better than the past two months, which were also revised higher. By Economics Writer Christopher S. Rugaber.
AP photos, video.
SYRIA
BEIRUT — Security forces open fire on protesters, killing at least 10, as tens of thousands poured into streets across Syria, chanting for the fall of President Bashar Assad and defying a fierce military siege of Hama, where tanks shelled residential districts around dawn. By Bassem Mroue.
AP photos, video.
AVIATION SHUTDOWN
WASHINGTON — The Senate approves legislation ending a two-week partial shutdown of the Federal Aviation Administration, clearing the way for thousands of employees to return to work and hundreds of airport construction projects to resume. The shutdown has cost the government about $400 million in uncollected airline ticket taxes. By Joan Lowy.
AP photos, video.
EAST AFRICA-FAMINE
MOGADISHU, Somalia — Somali government troops open fire on hungry civilians, killing at least seven people, as both groups made a grab for food at a U.N. distribution site in the capital of this famine-stricken country, witnesses say. Witnesses accused government soldiers of starting the chaos by trying to steal some of the 290 tons of dry rations as the aid workers tried to hand them out in the biggest camp in Mogadishu for famine refugees. By Abdi Guled and Katharine Houreld.
AP photos.
DEBT SHOWDOWN-DEFENSE
WASHINGTON — U.S. troops and their families are directly affected by the prospect of deep cuts in the Pentagon’s budget, which surely will shrink over the coming decade as the military closes out two wars, trims its ranks and possibly chops some budget-busting weapons systems. By Kimberly Hefling.
POLYGAMIST LEADER
SAN ANGELO, Texas — As a prophet for his polygamist sect, Warren Jeffs documented everything he did, keeping track of every marriage he performed, every young woman he wed, even recording his most intimate moments. Those meticulous records helped authorities secure two child sex assault convictions against Jeffs, and now prosecutors hope they will help them secure a life prison sentence for him. By Will Weissert.
AP photos, video.
LIBYA
BENGHAZI, Libya — Libyan rebel forces say they have unconfirmed reports that Moammar Gadhafi’s youngest son is dead in a NATO air strike on the western town of Zlitan. Khamis Gadhafi is in charge of the brigade that has been fighting around Zlitan, where Friday’s bombardment took place.
MEXICO-LIFE AFTER DEPORTATION
TIJUANA, Mexico — After 15 years of installing marble in homes in California, Porfirio Perez was caught without a driver’s license during a February traffic stop and deported. Now the 42-year-old just tries to survive in this sprawling border city, unable to get to his central Mexico hometown. He is among hundreds of deportees stuck in Tijuana because they don’t have the Mexican documents required and need permanent addresses to get them. By Omar Millan.
AP photos.
TEACHERS ON FACEBOOK
COLUMBIA, Mo. — As they prepare lesson plans for fall, teachers across Missouri have an extra chore: purging their Facebook friend lists to comply with a new state law that limits their contact with students on social networks. The law was proposed after an AP investigation found 87 Missouri teachers had lost their licenses between 2001 and 2005 because of sexual misconduct, some of which involved explicit online messages with students. By Alan Scher Zagier.
AP photo.
WEST COAST REPUBLICANS
WASHINGTON — Conservative Republicans flexed their newfound muscle in Capitol Hill’s chaotic debt showdown, but in left-leaning California, moderates are trying to push the party toward the center on immigration, guns and gay rights as the 2012 elections come into view. By Michael R. Blood.
GETTING ATTENTION
— NORWAY-POLAR BEAR ATTACK — Polar bear in Norway’s Arctic kills 1 British camper, injures 4, before being shot dead.
— BRITAIN-MR. BEAN — Reports: Mr. Bean actor Rowan Atkinson recovering in hospital after crashing supercar in UK/
— SCHWARZENEGGER-COMEBACK — With LA speech, Arnold Schwarzenegger continues a slow comeback after confirming his out-of-wedlock child.
— ARGENTINA-TWILIGHT FILM LAWSUIT — Argentine says she found unfinished scenes of the “Twilight” finale on the Internet; denies leaking them.
— FOOD AND FARM-RAW MILK — Regulations on raw milk tighten as local food movement spurs demand.
— EMIRATES-SELLING LINGERIE AND MORE — Risque offerings from Frederick’s of Hollywood offer window into Emirates’ retail appeal. AP photos.

nation/world
DEVELOPING
—Adds AVIATION SHUTDOWN
Has moved:
— POLYGAMIST LEADER — Polygamist leader Warren Jeffs convicted of child sexual assault charges. AP photos.
— TROPICAL WEATHER — Tropical Storm Emily breaks up after bringing heavy rain, isolated flooding to Haiti. AP photos, graphic.
TOP STORIES
WALL STREET
Fear that the American economy is headed back into recession grips the financial markets and drives the Dow Jones industrials to a decline of more than 500 points — their steepest since the 2008 financial crisis. The day is marked by wild swings: Gold prices touch a record high, oil falls an extraordinary $5, and investors are so desperate to get into safe government bonds that they’re willing to accept almost no return. By David K. Randall.
AP photos, graphics, interactive.
— WALL STREET PHOTO PACKAGE: Photographer Jin Lee has taken a series of powerful images for AP that capture the reactions and emotions on the floor of the New York Stock Exchange as the Dow slumps. Some of the best are AP photos NYJL114, 117, 113, 106, 112, 156, 158, 153, 137, 134-135.
— A separate package advisory detailing the AP’s coverage of Wall Street has moved.
DEBT SHOWDOWN-DEFENSE
WASHINGTON — The Pentagon got nearly everything it asked for during a decade of war shadowed by the Sept. 11 attacks and the rise of al-Qaida. No more. The debt deal approved by Congress opens the possibility of cutting up to $800 billion over the next decade, and new Defense Secretary Leon Panetta warns it will be painful. Among the places to look for cuts: a troubled new fighter jet, plans to upgrade the nuclear arsenal and perhaps some of the gold-plated benefits now guaranteed to military retirees. By Lolita C. Baldor and Donna Cassata.
AP photos.
TAINTED GROUND TURKEY
WASHINGTON — The first signs of the outbreak appeared in May. But it wasn’t until July that investigators were able to definitively link ground turkey to one death and 77 illnesses. And it wasn’t until this week that the public was notified and the turkey recalled. Health officials defend the lag time, saying a thorough investigation led to the nation’s third largest meat recall. By Mary Clare Jalonick.
AP photos by Danny Johnston.
AVIATION SHUTDOWN
WASHINGTON — Congress reaches a bipartisan compromise to end the two-week partial shutdown of the Federal Aviation Administration that has idled 74,000 federal employees and construction workers and cost the government about $30 million a day in uncollected airline ticket taxes, Senate Democratic leader Harry Reid says. By Joan Lowy.
AP photos.
VIRGINIA TECH-GUNMAN
BLACKSBURG, Va. — A report of a possible gunman at Virginia Tech set off the longest, most extensive lockdown and search on campus since the bloodbath four years ago that led the university to overhaul its emergency procedures. By Zinie Chen Sampson.
EGYPT-THE MUBARAK EFFECT-ANALYSIS
CAIRO — Facing tenacious uprisings, the leaders of Syria, Libya and Yemen could only have thought of their own possible fates when they saw Hosni Mubarak in a defendants’ cage facing charges that could carry a death sentence. For the three authoritarian Arab leaders, the choices are limited: Cling to power at any cost, negotiate immunity or find a foreign haven. And those options make it hard to resolve their countries’ turmoil. An AP News Analysis by Hamza Hendawi.
AP photos.
— EGYPT-MUBARAK TRIAL — Seven of Hosni Mubarak’s co-defendants return to court as boxes of evidence are opened, including weapons, ammunition and the blood-soaked jacket of a dead protester. AP photos.
WASHINGTON
DEBT SHOWDOWN-NO HAMMER
WASHINGTON — Speaker John Boehner was desperate in his search for votes from his party to prevent a first-ever government default. But despite what a GOP freshman called “hour by hour by hour” pressure from the Ohio Republican leader and his lieutenants, rank-and-file holdouts said they were neither offered carrots nor threatened with sticks to change their minds. That’s a major transformation from the not too distant past. By Larry Margasak.
AP photos.
INTERNATIONAL
SYRIA
BEIRUT — The flashpoint Syrian city of Hama endures a fifth day under military siege, with a resident saying people were being “slaughtered like sheep” in the streets and families were burying their dead in home gardens or roadsides rather than risk a trip to a cemetery. By Zeina Karam.
AP photos.
— SYRIA-DIPLOMACY — Russian President Medvedev says Syria’s leader will face a “sad fate” if he fails to talk with his opponents.
— US-SYRIA SANCTIONS — Clinton says more than 2,000 killed in brutal Syrian crackdown as US expands sanctions
NORWAY MASSACRE-RETHINKING SECURITY
OSLO, Norway — If a man buys three boxes of aspirin, there is no reason to take notice. But Anders Behring Breivik went to 20 drug stores a day for four days and bought three packages of aspirin at each stop — then ordered six tons of fertilizer, chemicals and a semiautomatic rifle — and largely escaped attention. Breivik’s massacre of 77 people forces Norwegian authorities to look at what they could have done to identify his purchases and other suspect behavior. By Adam Geller and Ian MacDougall.
AP photos, video.
EAST AFRICA-FAMINE
MOGADISHU, Somalia — Kaltum Mohamed sits beside a small mound of earth, alone with her thoughts. It is her child’s grave — and there are three others like it. The famine has killed an estimated 29,000 children under age 5 in the last 90 days in southern Somalia. It devastated Mohamed’s family. She watched four of her five children die as the family trekked from the parched south to Mogadishu. By Mohamed Sheikh Noor and Jason Straziuso.
AP photos by Schalk van Zuydam and Mohamed Sheikh Nor. AP video.
NATIONAL
TEXAS DROUGHT
SAN ANTONIO — The drought that has turned Texas and parts of the Plains into a parched moonscape of cracked earth could persist into next year, prolonging the misery of farmers and ranchers who have endured a dry spell that is now expected to be the state’s worst since the 1950s. By Paul Weber.
AP photos.
GETTING ATTENTION
— OBAMA — President celebrates his 50th birthday.
— NEW ZEALAND-EMPEROR PENGUIN — Lost Antarctic penguin finds a following on the Internet, likely to grow when he’s freed soon. AP Photos TOK801, TOK805.
— BRITAIN-AMY WINEHOUSE — Amy Winehouse, Tony Bennett duet on “Body and Soul” to be released as charity single. AP photo.
— MILES ARRESTED — Former NBA player Darius Miles arrested for carrying loaded gun at St. Louis airport. AP photo.
— REMAINS IN COOLER — Pennsylvania woman pleads guilty to murder in the deaths of five newborns whose remains were found in her home.
— JERRY LEWIS-MDA — Muscular Dystrophy Association says Jerry Lewis no longer national chairman, won’t appear on next Labor Day telethon.

FRIDAY, Aug. 5
A1 PROPOSALS

GM EARNINGS UP 89 PERCENT
@ With a lower cost structure and higher prices for new models, General Motors Co. reported net income increased 89 percent to $2.5 billion, or $1.54 per fully diluted share, marking the company’s sixth consecutive profitable quarter as the company continued to recover from its bankruptcy two years ago.
“GM’s investments in fuel economy, design and quality are paying off around the world as our global market share growth and financial results bear out,” chairman and chief executive officer Dan Akerson said Thursday. In the second quarter of 2010, GM’s net income attributable had earned $1.3 billion, or 85 cents per fully-diluted share.

MAN TO STAND TRIAL FOR DAUGHTER’S DEATH
@ An Oxford police officer testified Thursday that Robert Kelly walked into the station the morning of May 9 to report an assault. When asked who committed it, Kelly told the officer, “I did.”
A judge ordered Kelly, 52, to stand trial on one charge of first-degree, premeditated murder for the death of his 20-year-old daughter, Megan Roberts. Investigators contend Roberts was asleep in her bed when Kelly entered her room and beat her in the face and head with an aluminum baseball bat.
ZANIEWSKI VIDEO & SCREEN GRAB
TRIAL OPENS FOR MAN ACCUSED OF GAS STATION SHOOTING
@ 8:30 Hayes Bacall, a 50-year-old Farmington Hills resident, trial begins, charged in shooting death of Saif Jameel, a 33-year-old resident of Sylvan Lake.
HOPKINS PHOTO

NOVI
@ The real origin of Novi w/VID - Popular lore says Novi's name comes from its history as stage coach stop No. 6 along Grand River Avenue. It's a great story, says lifelong Novi resident and county Commissioner Kathy Crawford. But it's also not true.
CRUMM PHOTO & VIDEO



MUST RUNS

PONTIAC TRANSPORTATION CENTER TO OPEN
@ A grand opening is being held for the $1.4 million Pontiac Transportation Center on Woodward Avenue.
The ribbon cutting will be at 1:30 p.m. Monday, Aug. 8, at the center, which is located at 51000 Woodward Ave., just north of Orchard Lake Road.
BYRON PHOTO & VIDEO



SYLVAN LAKE Nudity?
Nudity or not? A reader wrote to The Oakland Press asking if anyone was upset over public nudity that he said occurred during the Sylvan Lake Summer Splash party held July 30 on Sylvan Lake.
The reader, who did not include a name, said people had placed a pole in the Sylvan Lake sandbar and then used it for a stripper contest.

Business for Friday

GM earnings - szczesny
General Motors earnings increased 89 percent during the second quarter. The reason? Its cars and trucks are selling for less of a discount.

new Cadillac - szczesny w/art web photos
Cadillac is planning to launch two new models as part of the next wave ot the company product offensive.
lear earnings - szczesny

FIAT-CHRYSLER TOUGH CHOICE
MILAN — Sergio Marchionne’s corporate jet has served a sort of mile-high headquarters as the CEO crisscrosses oceans and continents to integrate and expand Fiat and Chrysler. But the moment is coming, analysts say, when the high-flying CEO will have to choose a fixed center for the global car business he is building. By Business Writers Colleen Barry and Tom Krisher.
AP Photos MIJR101, 103-104.
Eds: Moved on national lines.


Southfield-based Lear Corp., a leading global supplier of automotive seating and electrical power management systems, reported a 21 percent increase in sales 20 percent gain in operating income from the same period year ago.

Flagstar Bank - szczesny

Jervis webb - szczesny

spotlights

Friday 8.5 Oakland Genesis10 IT firm Troy
Friday 8.5 Macomb Ed Morawski Mt Clemens

local briefs

on the web
PERSONAL FINANCE:
OF MUTUAL INTEREST-MONEY FUNDS
BOSTON — Money-market mutual funds have passed their first big test since the financial crisis. The risk of a U.S. debt default sent investors fleeing from the low-risk cash investments, stirring up memories of a money fund’s 2008 collapse. Although a default was avoided, there’s still a risk that money funds are vulnerable to a potential downgrade of U.S. debt because of their investment in Treasurys. We’ll examine that prospect, and review other options for investors seeking safety in cash now, from bank accounts to CDs. By Mark Jewell.
Eds: Available exclusively on AP Exchange/ AP Web Feeds.
FYI-TAX HOLIDAYS
At least 15 states have designated sales-tax holidays in August to help with back-to-school shopping. We’ll provide details on the various holidays and what sorts of purchases they apply to. By Eileen AJ Connelly
Eds: Available exclusively on AP Exchange/ AP Web Feeds

Business
TOP STORIES:
WALL STREET
NEW YORK — The Dow Jones industrial average plunges more than 350 points as fear about the U.S. economy and debt problems in Europe grip the stock market. The Dow has lost more than 1,000 points in less than two weeks, and broader measures of the market have fallen 10 percent since this spring, meeting the definition of a correction. AP photos, graphics, interactive.
WITH:
BANK OF NEW YORK-DEPOSITS
NEW YORK — Bank of New York says some of its institutional customers are stashing so much cash at the bank that it will start charging them a 0.13 percent fee to hold it. By Pallavi Gogoi.
WALL STREET-ECONOMY — The plunge in stock prices is signaling economic anxiety, but it’s also compounding the problem: Lower stock prices are shrinking Americans’ wealth, threatening consumer confidence and likely to make many employers less inclined to hire. For an economy that’s struggling to grow, the likelihood of a recession may be rising.
RETAIL SALES — The back-to-school season got off to a strong start as discounts and sweltering heat in July drove shoppers to air conditioned malls. But retailers worry that momentum won’t continue through the remainder of the second-biggest shopping period of the year.
KRAFT FOODS-SPLIT — Kraft Foods said it plans to split into two publicly traded companies, with one concentrating on its snack business like Oreo cookies and Trident gum while the other focuses on the North American grocery business, which includes Kraft cheese and Maxwell House coffee.AP Photo.

MARKETS & ECONOMY:
UNEMPLOYMENT BENEFITS
WASHINGTON — The number of people seeking unemployment benefits dipped last week, a sign the job market may be improving slowly. The Labor Department says that applications for unemployment benefits edged down 1,000 to a seasonally adjusted 400,000. That’s the lowest level in four months. By Christopher S. Rugaber.
— MORTGAGE RATES — The average rate on a 15-year fixed mortgage has fallen to its lowest level in decades.
— OIL PRICES — Oil dropped to a six-month low as investors continue to worry about sliding energy demand and a sluggish U.S. economy.
EARNINGS:
EARNS-CVS — CVS Caremark says its profit slipped 1 percent in the second quarter as its pharmacy benefits management business weathered lower prices on contract renewals. By Marley Seaman.
EARNS-SOUTHWEST — Southwest Airlines set records for full planes, and higher fares boosted revenue as the summer vacation season kicked into full gear. But high fuel prices hurt its profit, and the CEO said the airline is reconsidering its growth plans. By David Koenig.
— NETHERLANDS-EARNS-UNILEVER — Consumer products giant Unilever NV reported a 10 percent rise in first half earnings, as the company successfully passed on higher raw materials costs to customers.
— AUSTRALIA-EARNS-RIO TINTO — Mining giant Rio Tinto said its six-month profit jumped 30 percent to a record $7.6 billion, driven by strong Asian demand for iron ore and other minerals.
— EARNS-ALPHA NATURAL RESOURCES — Coal producer Alpha Natural Resources Inc. says it lost $56.4 million in the second quarter, reversing a profit from last year, as the company booked a $254 million charge related to its acquisition of rival Massey Energy Co.
— EARNS-CIGNA — Cigna Corp. said its second-quarter net income jumped 39 percent compared to last year’s quarter, when a hit from a discontinued business weighed on the managed care company’s performance. The Philadelphia health insurer hiked its earnings forecast for 2011.
— EARNS-FIRST SOLAR — First Solar Inc. reports quarterly financial results after the market close.
INDUSTRY:
TAINTED GROUND TURKEY — The first signs of the outbreak appeared in May. But it wasn’t until July that investigators were able to definitively link ground turkey to one death and 77 illnesses. And it wasn’t until this week that the public was notified and the turkey recalled. Health officials defend the lag time, saying a thorough investigation led to the nation’s third largest meat recall. By Mary Clare Jalonick.
— PIPELINE ACCIDENTS-CONGRESS — Republican and Democratic lawmakers say momentum is building to rewrite federal safety rules for the nation’s aging network of energy pipelines.
TECHNOLOGY & MEDIA:
HACKING CONFERENCE-INSULIN PUMPS
LAS VEGAS — Even the human bloodstream isn’t safe from computer hackers. A security researcher has identified several flaws that could allow an attacker to remotely control diabetics’ insulin pumps and alter the readouts of their blood sugar monitor. As a result, diabetics could get too much or too little insulin, a hormone they need for proper metabolism. By Jordan Robertson.
EARNS-LINKEDIN
LinkedIn Corp. reports quarterly financial results after the market close. By Michael Liedtke.
T-MOBILE USA-SUBSCRIBERS
NEW YORK — T-Mobile USA continued to lose wireless customers in the second quarter, but did a better job of keeping them than in the first three months of the year, when subscribers fled in record numbers. By Technology Writer Peter Svensson.
WITH:
— GERMANY-EARNS-DEUTSCHE TELEKOM — Deutsche Telekom AG said net profit fell 27 percent in the second quarter as it took one-time charges for early retirements in Germany and faced lagging revenue and excessive customer turnover in the U.S. mobile business it is selling to AT&T.
— EARNS-DIRECTV — Satellite TV provider DirecTV Group Inc. said its net income in the second quarter increased 29 percent as its subscriber base grew, especially in Latin America. But the company added far fewer subscribers in the U.S. than it has in previous quarters.
— JAPAN-SONY — Sony’s next-generation portable game machine, the PlayStation Vita, won’t be available in the U.S. or Europe in time for Christmas, a crucial sales period for game console makers.
INTERNATIONAL:
EUROPE-INTEREST RATES — European Central Bank head Jean-Claude Trichet isn’t saying whether the bank is propping up Spanish and Italian bonds to quell debt market turmoil, but insisted that the bond-buying program has not been shelved.
— EUROPE-FINANCIAL CRISIS — The 17-country eurozone needs to make further changes to its bailout fund — including boosting its size — to ensure it can stop the debt crisis from drawing in big economies like Italy and Spain, a top European Union official said.
— BRITAIN-INTEREST RATES — The Bank of England left its key rate on hold at the record low of 0.5 percent as concerns over Britain’s sluggish economic recovery outweighed inflation concerns.
JAPAN-CURRENCY INTERVENTION
TOKYO — Japan intervened in the foreign currency market and its central bank engineered a monetary boost, landing a one-two punch to knock the yen from levels that threaten the country’s post-disaster recovery. By Tomoko A. Hosaka.
— FRANCE-IMF CHIEF — A French court ordered an investigation into new IMF chief Christine Lagarde’s role in a much-criticized $400 million arbitration deal in favor of a controversial tycoon.
— GERMANY-ECONOMY — German industrial orders rose 1.8 percent in June, posting an unexpected third straight month of solid growth.
— NETHERLANDS-EARNS-ING — Financial firm ING Groep NV reported a 24 percent rise in second quarter profit because of a strong recovery at the insurance operations it intends to sell or spin off.

Nation world
DEVELOPING
— DEBT SHOWDOWN-PENTAGON — Defense Secretary Panetta’s news conference at 2:45 p.m.
— AWOL SOLDIER — Suspect expected in federal court at 3 p.m.
TOP STORIES
WALL STREET
NEW YORK — The Dow Jones industrial average plunges more than 300 points as fear about the U.S. economy and debt problems in Europe grip the stock market. The Dow has lost about 1,000 points in less than two weeks, and broader measures of the market have fallen 10 percent since this spring, meeting the definition of a correction. Bank of New York says so many of its large customers are stashing cash that it will start charging to hold it. By David K. Randall.
AP photos, graphics, interactive.
— WALL STREET PHOTO PACKAGE: Photographer Jin Lee has taken a series of powerful images for AP that capture the reactions and emotions on the floor of the New York Stock Exchange as the Dow slumps. Some of the best are AP photos NYJL114, 117, 113, 106 and 112.
DEBT SHOWDOWN-DEFENSE
WASHINGTON — The Pentagon got nearly everything it asked for during a decade of war shadowed by the Sept. 11 attacks and the rise of al-Qaida. No more. The debt deal approved by Congress opens the possibility of cutting up to $800 billion over the next decade, and new Defense Secretary Leon Panetta warns it will be painful. Among the places to look for cuts: a troubled new fighter jet, plans to upgrade the nuclear arsenal and perhaps some of the gold-plated benefits now guaranteed to military retirees. By Lolita C. Baldor and Donna Cassata.
AP photos.
VIRGINIA TECH-GUNMAN
BLACKSBURG, Va. — Sirens wail, text and email alerts go out and police swarm Virginia Tech’s campus after three children attending a summer camp tell police they spotted a man with what looked like a gun on the campus where a massacre four years ago left 33 people dead. Though authorities can’t find anyone matching the description of the possible gunman, the university that was fined for waiting too long to notify students and staff after the 2007 rampage takes no chances, telling people to remain indoors for hours while the search continues. By Zinie Chen Sampson.
AP photos, graphic, video.
TAINTED GROUND TURKEY
WASHINGTON — The first signs of the outbreak appeared in May. But it wasn’t until July that investigators were able to definitively link ground turkey to one death and 77 illnesses. And it wasn’t until this week that the public was notified and the turkey recalled. Health officials defend the lag time, saying a thorough investigation led to the nation’s third largest meat recall. By Mary Clare Jalonick.
AP photos by Danny Johnston.
EGYPT-THE MUBARAK EFFECT-ANALYSIS
CAIRO — Facing tenacious uprisings, the leaders of Syria, Libya and Yemen could only have thought of their own possible fates when they saw Hosni Mubarak in a defendants’ cage facing charges that could carry a death sentence. For the three authoritarian Arab leaders, the choices are limited: Cling to power at any cost, negotiate immunity or find a foreign haven. And those options make it hard to resolve their countries’ turmoil. An AP News Analysis by Hamza Hendawi.
AP photos.
— EGYPT-MUBARAK TRIAL — Seven of Hosni Mubarak’s co-defendants return to court as boxes of evidence are opened, including weapons, ammunition and the blood-soaked jacket of a dead protester. AP photos.
TEXAS DROUGHT
SAN ANTONIO — The drought that has turned Texas and parts of the Plains into a parched moonscape of cracked earth could persist for another year, prolonging the misery of thousands of farmers and ranchers. Climatologists say the La Nina weather phenomenon blamed for the crippling lack of rain might be back soon, just two months after the last La Nina ended. If it happens, the drought that is now the state’s worst since the 1950s would almost certainly extend into 2012. By Paul Weber.
AP photos.
WASHINGTON
DEBT SHOWDOWN-NO HAMMER
WASHINGTON — Speaker John Boehner was desperate in his search for votes to prevent a first-ever government default. Holdouts felt pressure “hour by hour by hour.” But there weren’t promises of bridges or campaign cash, and none of his rank-and-file Republicans came away feeling threatened or bullied — a major transformation from the not too distant past. By Larry Margasak.
AP photos.
— CONGRESS-TRADE — A Senate deal on extending some President Barack Obama’s stimulus aid for workers whose jobs moved overseas breaks a political logjam blocking free trade agreements with South Korea, Colombia and Panama.
— OBAMA — President celebrates his 50th birthday.
INTERNATIONAL
SYRIA
BEIRUT — People in the besieged Syrian city of Hama are forced to ration food and share bread, and phones, Internet and electricity are cut off or severely hampered as the military moves against anti-government protests. One resident says gunmen in plainclothes are randomly shooting people in the streets. Some families are burying loved ones in home gardens or roadside pits, fearful they will be killed if they go to a cemetery. By Zeina Karam.
AP photos.
— SYRIA-DIPLOMACY — Russian President Medvedev says Syria’s leader will face a “sad fate” if he fails to talk with his opponents.
— US-SYRIA SANCTIONS — U.S. imposes economic sanctions against prominent Syrian businessman and his company.
NORWAY MASSACRE-RETHINKING SECURITY
OSLO, Norway — If a man buys three boxes of aspirin, there is no reason to take notice. But Anders Behring Breivik went to 20 drug stores a day for four days and bought three packages of aspirin at each stop — then ordered six tons of fertilizer, chemicals and a semiautomatic rifle — and largely escaped attention. Breivik’s massacre of 77 people forces Norwegian authorities to look at what they could have done to identify his purchases and other suspect behavior. By Adam Geller and Ian MacDougall.
AP photos, video.
EAST AFRICA-FAMINE
MOGADISHU, Somalia — Kaltum Mohamed sits beside a small mound of earth, alone with her thoughts. It is her child’s grave — and there are three others like it. The famine has killed an estimated 29,000 children under age 5 in the last 90 days in southern Somalia. It devastated Mohamed’s family. She watched four of her five children die as the family trekked from the parched south to Mogadishu. By Mohamed Sheikh Noor and Jason Straziuso.
AP photos by Schalk van Zuydam and Mohamed Sheikh Nor. AP video.
NEW ZEALAND-EMPEROR PENGUIN
WELLINGTON, New Zealand — Happy Feet, the wayward emperor penguin found on a New Zealand beach, has become a creature of the Internet age with his own live webcast. When he’s freed into the wild later this month, he will carry a GPS tracker on his back. By Nick Perry.
AP photo, video.
— TROPICAL WEATHER — Tropical Storm Emily causes flooding and damages hundreds of homes in Haiti.
— FRANCE-IMF CHIEF — A French court orders an inquiry into new IMF chief Christine Lagarde’s role in a $400 million arbitration deal. AP photos.
NATIONAL
DB COOPER
OLYMPIA, Wash. — The FBI has been chasing ghosts for nearly 40 years in the search for the never-captured hijacker named D.B. Cooper, the latest being a dead Korean War vet whose niece came forward this week to say her uncle was hijacker. It’s far from the first promising lead to materialize. There was an ex-con who made a false deathbed confession in 1995 that he was Cooper. There was a fugitive who briefly became a suspect after being accused of killing his family days before the hijacking. There was an airline employee who attracted interest because he was a paratrooper. As every lead has surfaced, the D.B. Cooper phenomenon has grown in allure. By Mike Baker.
AP photos.
— REMAINS IN COOLER — Pennsylvania woman pleads guilty to murder in the deaths of five newborns whose remains were found in her home.
— MORMON DEFENSE LEAGUE — Organization that defends Mormon beliefs launches organization to help journalists better understand the faith at a time when two church members are running for president.
— JERRY LEWIS-MDA — Muscular Dystrophy Association says Jerry Lewis no longer national chairman, won’t appear on next Labor Day telethon.
— BURIED IN SAND — Video shows teenage boy being rescued from beach after being buried in 5 feet of sand.
BUSINESS
RETAIL SALES
NEW YORK — Many retailers post solid sales during the kickoff to the back-to-school season as discounts and high temperatures in July drove shoppers to air-conditioned malls. But merchants worry that momentum won’t continue through the remainder of the second-biggest shopping period of the year as the weather gets cold and the deals dry up. By Retail Writer Anne D’Innocenzio.
AP photos.
— KRAFT FOODS-SPLIT — Kraft plans to split into two companies: A snacks business and a North American grocery business. AP photo.
GETTING ATTENTION
— PEOPLE-LIL WAYNE — Lil Wayne and Young Money sued for $15 million over the hit single “Bedrock.” AP photo.
— BRITAIN-AMY WINEHOUSE — Amy Winehouse, Tony Bennett duet on “Body and Soul” to be released as charity single. AP photo.
— YANKEES-RODRIGUEZ POKER — Publicist criticizes report, says Yankees slugger Alex Rodriguez looks forward to cooperating with baseball’s poker probe. AP photos.
— HURRICANE FORECAST — U.S. forecasters upgrade Atlantic hurricane season outlook as peak storm period begins.
— MILES ARRESTED — Former NBA player Darius Miles arrested for carrying loaded gun at St. Louis airport. AP photo.
— BRITAIN-PHONE HACKING — British lawmakers call on CNN host Piers Morgan to answer questions over tabloid phone hacking scandal. AP photo.
— JERSEY SHORE-NEW SEASON — MTV’s “Jersey Shore” cast members missed the real Jersey shore when they were in Italy.

Nation World
NEW & DEVELOPING
— AWOL SOLDIER — Suspect expected in federal court at 2 p.m.
— DEBT SHOWDOWN-PENTAGON — Defense Secretary Leon Panetta’s news conference at 2:45 p.m.
TOP STORIES
WALL STREET
NEW YORK — Stocks are plunging in another broad sell-off as investors grow concerned about an economic slowdown in the U.S. and Europe. The Dow Jones industrial average dove more than 350 points, erasing its gains for the year. By Business Writer David K. Randall.
AP photos.
VIRGINIA TECH-GUNMAN
BLACKSBURG, Va. — Virginia Tech was locked down Thursday when three children attending a summer camp said they saw a man holding what looked like a gun, an alarming report on the campus where a 2007 massacre left 33 people dead. By Zinie Chen Sampson.
AP graphic. AP photos, videos planned.
TAINTED GROUND TURKEY
WASHINGTON — Meat giant Cargill is recalling 36 million pounds of turkey after a government hunt for the source of a salmonella outbreak that has killed one person in California and sickened dozens more. The Agriculture Department says it is one of the largest meat recalls ever. By Mary Clare Jalonick.
AP photos.
KRAFT FOODS-SPLIT
PORTLAND, Ore. — Kraft Foods says it plans to split into two publicly traded companies, with one focusing on its international snack brands like Trident gum and Oreo cookies and the other on its North American groceries business that includes Maxwell House coffee and Oscar Mayer meats. By Food Industry Writer Sarah Skidmore.
AP photo.
SYRIA
BEIRUT — Gunmen in plainclothes are randomly shooting people in the streets of the besieged Syrian city of Hama and families are burying their loved ones in gardens at home for fear of being killed themselves if they venture out to cemeteries, a resident says. By Zeina Karam.
AP photos, video.
FRANCE-IMF CHIEF
PARIS — A French court orders an investigation into new IMF chief Christine Lagarde’s role in a much-criticized $400 million arbitration deal in favor of a controversial tycoon. By Cecile Brisson.
AP photos.
INTERNATIONAL
NORWAY MASSACRE-RETHINKING
OSLO, Norway — Anders Behring Breivik’s massacre of 77 people in a meticulously planned rampage is forcing Norwegian authorities to look at what they could have done to prevent or identify his pattern of purchases and other suspect behavior. By Adam Geller and Ian MacDougall.
AP photos.
— NORWAY-MASSACRE — Prosecutor: Norway killer declining to give info that could determine if he had accomplices. AP photos.
LIBYA-TRIPOLI BRIGADE
NALUT, Libya — The rebel fighters of the Tripoli Brigade have one goal — to be among the first to enter the Libyan capital and kick out Moammar Gadhafi and his cronies. Its 475 fighters, some who came home after years abroad, all have links to Tripoli and are trying to fight their way there from the country’s western mountains. By Karin Laub.
AP photos.
TAIWAN-OLD SOLDIER
TAIPEI, Taiwan — As Taiwan marks the centenary of the Republic of China this year, 97-year-old Wei Hsien-wen can reflect on what was — and what might have been. When he was born, the republic was in its infancy, poised to build a new China after toppling the last imperial dynasty in 1911. Today, having lost the battle for China to the communists in 1949, it governs only the island of Taiwan and its 23 million people. By Annie Huang.
— EGYPT-MUBARAK TRIAL — After start of historic Mubarak trial, his security chief and six police officials back in court. AP photos.
— AUSTRALIA-SUSPICIOUS DEVICE — Australian police say fake bomb was attached to Sydney teen’s neck in an extortion attempt. AP photos.
— TROPICAL WEATHER — Tropical Storm Emily hovers off southern Haiti, bringing heavy rain, isolated floods. AP photos.
— EAST AFRICA-FAMINE — U.S. says Somalia famine has killed more than 29,000 children under age 5 in last 90 days. AP photos.
— NIGERIA-OIL SPILLS — UN: Oil spills leave widespread ecological damage in a region of Nigeria’s crude-rich delta.
NATIONAL
DB COOPER
OKLAHOMA CITY — The distant memories of an 8-year-old girl have prompted the FBI to take a closer look at the nearly 40-year-old mystery of the nation’s only unsolved skyjacking. Marla Cooper, now 48, believes her late uncle Lynn Doyle Cooper is the notorious D.B. Cooper, who hijacked a plane in 1971 and parachuted away with $200,000 in ransom cash into a rainy night over the Pacific Northwest. By Sean Murphy.
AP photos.
— POLICE-HOMELESS DEATH — Schizophrenic homeless man’s death after police confrontation outrages father. AP photos.
WASHINGTON
AVIATION SHUTDOWN
WASHINGTON — On the surface, the partial shutdown of the Federal Aviation Administration is about whether to cut $16 million in air service subsidies, a pretty small amount in this town. Underneath are layers upon layers of political gamesmanship that, at its heart, is about whether Democrats or Republicans get to call the shots in Congress. By Joan Lowy.
AP photos.
OBAMA-FUNDRAISING
CHICAGO — Trying to make up for lost time, President Barack Obama plunges back into his re-election campaign, urging supporters not to be discouraged by the frustrating debt negotiations that consumed Washington and kept him from raising money for his 2012 bid. By Julie Pace and Ken Thomas.
AP photos.
— OBAMA — President celebrates 50th birthday at White House with senior staff, family and friends.
— HEALTH OVERHAUL-LOOPHOLE — Massachusetts hospitals reap $275 million a year from health law loophole as other states pay for it.
BUSINESS
RETAIL SALES
NEW YORK — Many retailers posted solid sales during the kickoff to the back-to-school season as deep discounts and sweltering heat in July drove shoppers to air conditioned malls. But merchants worry that momentum won’t continue throughout the remainder of the second-biggest shopping period of the year. By Retail Writer Anne D’Innocenzio.
AP photos.
EARNS-GM
DETROIT — After years of big discounts, GM is finally getting a good price for its cars and trucks, and it’s helping the company’s bottom line. By Auto Writer Dee-Ann Durbin.
AP photo.
— UNEMPLOYMENT BENEFITS — Slightly fewer people seek unemployment benefits last week, lowering applications to 400,000. AP photos.
— MORTGAGE RATES — Average rate on 15-year fixed loan falls to 3.54 percent; 30-year fixed loan drops to 4.39 percent.
— EUROPE-INTEREST RATES — ECB’s Trichet says bond purchase program has not been shelved; bank leaves rates unchanged. AP photo.
HEALTH
EXPENSIVE DIET
SEATTLE — A healthy diet is expensive and could make it difficult for Americans to meet new U.S. nutritional guidelines, according to a study published Thursday that says the government should do more to help consumers eat healthier. By Donna Gordon Blankinship.
GETTING ATTENTION
— JERRY LEWIS-MDA — Jerry Lewis is no longer serving as the Muscular Dystrophy Association’s national chairman and won’t be appearing on this year’s Labor Day telethon, the nonprofit agency announces.
— YANKEES-RODRIGUEZ POKER — Publicist criticizes report, says Alex Rodriguez looks forward to cooperating with baseball’s poker probe. AP photos.
— BRITAIN-PHONE HACKING — British lawmakers call on CNN host Piers Morgan to answer questions over tabloid phone hacking scandal. AP photo.
— DANCING WHALE — Whale seen “dancing” on video from wedding at Connecticut aquarium; trainers doubt it was boogying.
— NEW ZEALAND-EMPEROR PENGUIN — Wayward penguin recovering in New Zealand joins Internet age with 120,000 online fans. AP photos.