AUTOMOTIVE

GM Europe hits rough patch

Frankfurt, Germany —- GM Europe said Wednesday that its sales rose by nearly 3 percent in the first half of the year, bolstered by stronger demand for its Chevrolet brand. But June sales dropped by 5.5 percent. GM Europe said it sold 202,869 cars last month —- down from 214,574 in the same period a year earlier —- with all of its brands apart from Chevrolet posting double-digit declines.

American Axle to cut more jobs

Detroit —- Auto parts supplier American Axle and Manufacturing Holdings Inc. said Wednesday that it plans to eliminate between 300 and 350 U.S. salaried jobs. The cuts come in addition to the previously announced elimination of 2,000 U.S. hourly jobs at the supplier, or more than half the company's 3,650 manufacturing workers. American Axle has about 2,000 salaried workers worldwide, spokeswoman Renee Rogers said.

FINANCIAL

B of A says loans will be reworked

Bank of America Corp. Chief Executive Kenneth Lewis expects the economy to begin recovering from the housing crisis in the middle of next year. "Until then, depending on what sector of the economy you're in, it will feel slow and may feel like a recession," Lewis said Wednesday in prepared remarks for a group in Los Angeles. Bank of America last week became the biggest U.S. mortgage lender after completing the $2.5 billion acquisition of Countrywide Financial Corp. It plans to rework at least $40 billion in troubled loans over two years to keep more than 250,000 families in their homes, Lewis said.

Citi to shrink student loan unit

Citigroup Inc. will eliminate 174 jobs to save money in its student loan operations. Of the cuts, 146 will occur at Student Loan Corp. and 28 at Citibank NA of South Dakota, where an operations center supporting Student Loan is housed, New York-based Citigroup said Wednesday in a statement. Student Loan has 523 employees, Citigroup spokesman Robert Julavits said in an e-mail.

Newsletter writers more bearish

Optimism about stocks among newsletter writers slid to the lowest level since July 1994 after the Dow Jones industrial average fell into a bear market and oil prices reached records, according to Investors Intelligence. "Many advisers are trend followers and don't want to be bullish in a bear market," Investors Intelligence analysts Mike Burke and John Gray wrote in a report Wednesday. The share of bullish stock advisers in a survey by the research firm dropped to 27.4 percent during the week ended Tuesday from 31.9 percent the previous week. Bearish writers increased for a fifth straight week to 47.3 percent, the highest level since September 1998.

Treasury official to lead Wachovia

Charlotte —- Wachovia Corp., the fourth-largest U.S. bank, named Treasury Undersecretary Robert Steel its chief executive on Wednesday, ending a nearly six-week search. The bank also said it has set aside $4.2 billion pretax to cover bad loans for the quarter, leading to an estimated second-quarter loss of about $2.6 billion to $2.8 billion. The quarterly loss will equal $1.23 to $1.33 per share, excluding an expected write-down of goodwill. Analysts polled by Thomson Financial expected a profit. Steel succeeds Ken Thompson, who was ousted by the bank's board in June after a series of missteps.

FOOD / BEVERAGE

Taste testers sue Cadbury

Newark, N.J. —- Three taste testers for candy maker Cadbury PLC claim they were seriously injured while sampling something sweet. The testers say a high-intensity sweetener caused chemical burns to their mouths at the company's research center in New Jersey. They're suing the company's U.S. subsidiary, Cadbury Adams, charging that it hindered their treatment by delaying the disclosure of the sweetener's ingredients to a dentist. A company spokeswoman declined to comment.

HEALTH CARE

WellStar Health hires executive

Diane Swain, formerly corporate vice president of operations at Methodist LeBonheur Healthcare in Memphis, has joined WellStar Health System in Marietta as vice president and chief operating officer for WellStar Kennestone Hospital. At Methodist LeBonheur Healthcare, Swain was responsible for establishing strategic direction and providing leadership for clinical areas across a seven-hospital system consisting of more than 1,300 beds. At WellStar, Swain will be responsible, among other things, for overseeing the day-to-day operations for the system's largest hospital.

MANUFACTURING

Tanker contract will be rebid

Washington —- Boeing Co. and Northrop Grumman Corp. will submit new offers for a disputed $35 billion Air Force tanker contract, and the Pentagon will pick a winner by the end of the year. Defense Secretary Robert Gates said Wednesday that his office —- not the Air Force —- will oversee the competition between Boeing and the team of Northrop and European Aeronautic Defence and Space Co., the parent of Airbus. "I think it's better," said Rep. Norm Dicks (D-Wash.). "No one has any faith in the Air Force." The Government Accountability Office last month detailed "significant errors" the Air Force made in the original award to the Northrop team.

Graphic Packaging to raise prices

Following similar moves by competitors, Marietta-based Graphic Packaging International said Wednesday it would raise prices on its recycled board and uncoated recycled board by $50 per ton, effective July 28. The company attributed the increase to higher costs for fiber, chemicals and energy. Graphic Packaging also said it would set new freight allowances because of soaring fuel surcharges. "We're trying to respond to the manufacturing inputs that are impacting our businesses," said Lois Becton, a spokeswoman. She declined to say how much of an increase that represented compared with previous charges for those products.

REAL ESTATE

Fund buys stake in N.Y. landmark

New York —- An Abu Dhabi investment fund has bought a majority stake in New York City's landmark Chrysler Building. A spokeswoman for Prudential Financial Inc. says the insurer sold its 75 percent stake in the art deco skyscraper to the Abu Dhabi Investment Council. No price was disclosed. The 77-story building opened in 1930 and was briefly New York's tallest tower until the Empire State Building was completed a year later. New York real estate giant Tishman Speyer Properties owns the remaining 25 percent stake.

Foreclosure filings rise year-over-year

Washington —- The number of homeowners stung by the rout in the U.S. housing market jumped last month as foreclosure filings grew by more than 50 percent compared with June a year ago, according to data released Thursday. Nationwide, 252,363 homes received at least one foreclosure-related notice in June, up 53 percent from the same month last year, but down 3 percent from May, RealtyTrac Inc. said. One in every 501 U.S. households received a foreclosure filing last month.

REGULATORY

Sycamore settles backdating case

Washington —- Sycamore Networks Inc. and three former executives on Wednesday agreed to settle federal regulators' allegations of improper backdating of stock options from 2000 to 2005. The telecom equipment maker was not fined under the settlement with the Securities and Exchange Commission, which cited its cooperation in the agency's investigation. The former executives, however, are paying a total of more than $660,000. Chelmsford, Mass.-based Sycamore Networks neither admitted nor denied wrongdoing under the accord.

RETAILING

Steve & Barry's files for bankruptcy

New York —- Steve & Barry's LLC, once a growing force in low-priced fashion retailing, said Wednesday that it filed for Chapter 11 bankruptcy protection. The company also announced that it was considering a plan to sell all or some of its assets to repay outstanding debt. The Port Washington, N.Y.-based chain operates 276 locations in 39 states. Company officials blamed the bankruptcy filing on a cash crunch as a result of the tighter credit markets and general sluggish economic conditions. "The generally poor environment for apparel retailers has reduced funding to our suppliers, landlords and to our company," Steve Shore and Barry Prevor, co-founders and co-CEOs, said in a statement. "It has become increasingly difficult for us to continue operating normally under these circumstances."

Stewart's lines expand to Wal-Mart

New York —- In its first foray into Wal-Mart stores, Martha Stewart Living Omnimedia Inc. said Wednesday that it will expand its Martha Stewart Crafts line into the world's largest retailer. The media and merchandising company said two new assortments —- Martha Stewart Create and Martha Stewart Celebrate —- will make their debut in the majority of Wal-Mart stores.

Starbucks tests promotions

Seattle —- Starbucks Corp. is testing several types of promotions, a move it hopes will help counter the decline in domestic store traffic that led to a decision to close 600 stores. "One of the things we're consistently hearing in this day and age [is] even though budgets are tight, they still don't want to give up life's little luxuries," Brad Stevens, vice president of customer relationship management at Starbucks, said in an interview Wednesday. "They consider Starbucks one of those luxuries." The promotions vary by region and timing. Starbucks would not say how many stores are planning promotions.

TRANSPORTATION

Boeing raises long-term outlook

Seattle —- Boeing Co. on Wednesday raised its outlook for spending on commercial airplanes over the next 20 years by 14 percent, helped in part by an expected 5 percent rise in worldwide air travel and the demand for new, more fuel-efficient planes. In its annual forecast, Boeing said it expects 29,400 planes to enter commercial fleets by 2027, worth an estimated $3.2 trillion. That's higher than last year's outlook, which had called for 28,600 new passenger and freighter planes valued at $2.8 trillion. Boeing said it expects airlines and leasing companies will replace more aging planes with new ones than previously forecast as rising fuel costs and other economic factors make newer, more efficient planes more attractive.

EU cracks down on airline ads

Strasbourg, France —- The European Parliament on Wednesday approved a bill to prevent airlines posting advertisements for cheap flights that hide the true price by excluding additional charges such as taxes and booking fees. The bill passed without a vote because none of the 785 members of the EU assembly raised any objections. A European Union report in May claimed that a third of people who shop for flights online are being cheated by misleading ads and price schemes. It said airlines and other travel companies often add airport taxes, handling fees, baggage and seating charges, and a variety of other costs, on top of the prices that first appear on Web sites. Under the rules approved Wednesday, airlines will have to clearly show the total price customers will have to pay.

ExpressJet to end branded flights

ExpressJet Holdings Inc., a regional carrier, said it will halt commercial flights under its brand name Sept. 2 because of rising fuel costs. The decision comes a week after Delta Air Lines Inc. said it agreed with ExpressJet to end a regional flying contract in September. ExpressJet's corporate charter business and service for Continental Airlines Inc. will continue, Houston-based ExpressJet said in a statement.

UTILITIES / ENERGY

Gas consumption lowest since 2003

As average gas prices hit a record high of $4.108 a gallon this week, the government released data showing that drivers have cut back their use to levels not seen in five years. Even through the Fourth of July weekend —- a time when Americans traditionally get on the road —- gasoline consumption dropped 3.3 percent from last year to 9.347 million barrels a day, according to weekly data released by the Energy Information Administration. For the first week of July, that is the least gas drivers have used since 2003. Meanwhile, supplies of gasoline are building even as refiners produce fewer gallons. "There is no doubt there are no supply concerns for the next two months," said Stephen Schork, president of the Schork Group research firm.