AUTOMOTIVE

Exec: Hybrids need more federal help

Automakers and suppliers need more federal aid to spur production of gasoline-electric autos and batteries, according to the top hybrid executive for Johnson Controls Inc. "They're ignorant," Mary Ann Wright said of U.S. regulators and legislators during a presentation Tuesday at an industry conference in Traverse City, Mich. "They do not understand the technology challenges."

GM trucks, SUVs boost fuel economy

General Motors Corp. is boosting fuel economy for full-size pickups and sport utility vehicles by as much as 7 percent by making them lighter and more streamlined. Mechanical and aerodynamic changes and the cut in weight will help pickups improve to 15 miles per gallon in the city and 21 mpg on the highway, a 1-mpg gain, GM said Tuesday in a statement. They'll carry an XFE badge, for "extra fuel economy," and go on sale next quarter.

FINANCIAL

Data compromised at Wells Fargo

Wells Fargo & Co. is notifying some 5,000 people that their personal information might have been seen by someone using a bank access code illegally. A bank spokeswoman said Tuesday that MicroBilt Corp., a consumer data vendor, told Wells Fargo on July 1 that there was unusual activity on one of the bank's access codes. "We notified law enforcement right away," said Wells Fargo spokeswoman Mary Berg, adding that it appears that the unauthorized activity happened in May and June. The bank is sending letters to about 7,000 names on the list —- which will probably end up being 5,000 once the duplicates are eliminated, Berg said —- and offering those individuals a free one-year membership to an identity theft protection service.

Federal Reserve lends $25 billion

Washington —- The Federal Reserve has auctioned another $25 billion in loans to the nation's banks and given them more time to pay the money back in an effort to combat a serious credit squeeze. The Fed announced Tuesday that the money would be loaned at a rate of 2.754 percent. In the latest auction, the Fed offered the loans for an extended period of 84 days, rather than the 28-day period for the previous loans.

SunTrust declares quarterly dividend

SunTrust Banks declared a regular quarterly dividend Tuesday, defying some industry analysts who had suggested the Atlanta bank needed to cut or suspend its dividend to preserve capital. SunTrust, the largest bank based in Georgia, said it will pay a dividend of 77 cents per share on Sept. 15, the same level as in recent quarters. The dividend will go to investors who own SunTrust stock Sept. 2. Like other financial stocks, SunTrust's share price has plunged in recent months amid investor jitters over growing piles of problem loans in banks' portfolios, which could lead to big losses, forcing banks to raise capital and take other actions to preserve cash, such as cutting dividends. SunTrust reacted to investor worries by saying it had no plans to issue new stock or cut its dividend. Instead, the company announced last month that it had agreed to a series of complicated transactions to dispose of a big stake in Coca-Cola to boost its capital.

Prudential to take $125 million charge

Prudential Financial Inc., the second-largest U.S. life insurer, said it would take a $125 million pretax charge related to its investment in a joint venture with Wachovia Corp. The cost will reduce third-quarter earnings, the company said Tuesday in a regulatory filing.

Wall Street losses hurt tax collector

Wall Street's mortgage losses have grown so large that some firms may pay little or no taxes for years, widening deficits in New York City and the state, Mayor Michael Bloomberg said. Some companies are even seeking refunds from the city on taxes they prepaid, saying losses have cut their tax liability to zero, Bloomberg said. "It will be a number of years before Wall Street starts paying taxes again," the New York mayor said at a news conference Monday in Manhattan. "They will carry forward all of those losses."

FOOD / BEVERAGE

Anheuser-Busch to cut salaried staff

St. Louis —- Anheuser-Busch Cos. Inc. has released details of a retirement program that will be offered to certain employees. Of the company's 8,600 employees, the 1,300 who are 55 and older are eligible. The company expects to reduce its salaried staff by 10 percent to 15 percent.

LEGAL

EBay wins suit filed by L'Oreal

EBay Inc. has won a Belgian lawsuit filed by L'Oreal SA over claims the Internet auction site didn't do enough to prevent the sale of counterfeit cosmetics. The decision was the second court ruling that backed eBay in a case over the sale of counterfeit goods by vendors operating through the company's Web site, eBay said in a statement Tuesday. A U.S. court last month ruled that eBay wasn't responsible for the sale of fake Tiffany & Co. jewelry. "The litigation of counterfeits against eBay has been exposed as merely a stalking horse," the company said. "We work to tackle the menace of counterfeit through action and co-operation with rights owners."

MANUFACTURING

Boeing to stay in tanker bidding

Washington —- Boeing signaled Tuesday that it will remain in the competition for a disputed $35 billion Air Force tanker contract, saying talks with the Pentagon were the start of a "continuing dialogue" over the latest round of bidding. Officials from Boeing Co. and rival Northrop Grumman Corp. met with Defense Department officials in Dayton, Ohio, to discuss the latest draft request for proposals for the second round of bidding on the tanker program. Some Boeing supporters say the new round is unfairly tilted to Northrop's larger plane, and there had been speculation that Boeing might not bid again.

MEDIA

CNN to open 10 new U.S. offices

CNN will open offices in 10 new cities, the cable news network said Tuesday. The offices will be staffed with a mix of reporters, on-air correspondents and other journalists. Most will be shifted from other locations, and the move will not produce new jobs, the company said. The new offices are in Denver, Houston, Las Vegas, Minneapolis, Orlando, Philadelphia, Phoenix, Raleigh, Seattle and Columbus, Ohio. CNN is owned by Atlanta-based Turner Broadcasting System.

Comcast to start action channel

Philadelphia —- Comcast Corp. and Metro-Goldwyn-Mayer Inc. said Tuesday that they are teaming up to introduce a video-on-demand channel featuring action movies and TV shows. Comcast, the country's largest cable operator, already has a hit with another genre-specific VOD channel and Web site, FEARnet, which features horror movies and thrillers. Philadelphia-based Comcast said its new Impact channel will have 25 to 30 titles every month and will tap into MGM's library of more than 1,000 action movies and TV shows, including many in high-definition format.

Net ad spending forecast trimmed

Internet ad spending in the United States will be lower than expected this year and next, putting pressure on Google, Yahoo and Microsoft, according to EMarketer Inc. EMarketer plans to cut its forecast for 23 percent growth in 2008 by "a few percentage points," said David Hallerman, an analyst at the New York-based research firm. The firm had predicted almost $26 billion in ad sales this year. Hallerman said his estimate for 2009 growth of 16 percent is "also probably too high."

REAL ESTATE

Report: More deals made at loss

Almost one in four home sellers who sold their property in the past year lost money on the deal, a new report from Zillow Inc. showed Tuesday, while foreclosures made up 15 percent of all sales. Nationwide, nearly 24 percent of homes sold at a loss, the real estate information company said in its second-quarter report. In parts of California, more than three of five homes sold for a loss, and half of all sales were foreclosures. Despite gloomy housing headlines and dismal data, homeowners nationwide remain oddly optimistic about the value of their homes, a separate Zillow survey found. Sixty-two percent think their home value increased or stayed the same in the past year, and three-fourths expect their home value to increase or stay the same in the next six months. By all measures, home prices have fallen nationally in the past year with the states that saw the biggest run-up in prices during the boom —- California, Nevada, Florida and Arizona —- now posting the sharpest declines.

REGULATORY

Short-selling rule expires Thursday

Washington —- A government order that temporarily banned a certain kind of short-selling of the stocks of Fannie Mae, Freddie Mac and 17 large investment banks expires Thursday. The companies' shares have stabilized since the ban took effect July 21. The Securities and Exchange Commission says its order helped prevent stock manipulation, but some experts say that's difficult to determine. The SEC instituted the emergency ban after a precipitous slide in the shares of Fannie and Freddie, the government-sponsored companies that together hold or guarantee more than $5 trillion in home mortgages —- nearly half the U.S. total. By law, the SEC order cannot be extended beyond Thursday, 30 calendar days from its initial date. Going forward, though, the agency plans to consider new rules meant to provide additional protections against abusive "naked" short-selling in the broader market, while allowing legitimate short-selling.

RETAILING

Tween Brands to convert stores

New Albany, Ohio —- Tween Brands Inc. says it's converting nearly 600 Limited Too stores to its lower-priced Justice brand. It'll nearly triple the size of the Justice chain when the conversion is completed in the first quarter of next year. Once the transaction is completed, the New Albany-based teen clothing chain will no longer operate any Limited Too stores in the United States. But some of the brand's clothing will continue to be sold in Justice stores.

TECHNOLOGY

Best Buy to sell Apple's iPhone

Best Buy Co. will start selling the iPhone on Sept. 7, becoming the first U.S. chain to do so outside of Apple Inc. and AT&T Inc.'s own stores. The announcement by Best Buy expands the availability of Apple's vaunted phone to 970 full-size stores and 16 smaller Best Buy Mobile stores. It's also a coup for the Minneapolis-based chain, which has been upgrading its cellphone departments. Another major electronics chain, RadioShack Corp., sells AT&T phones, but not the iPhone.

TELECOM

AT&T wins Boeing contract

AT&T Inc. won a contract worth more than $400 million to consolidate Boeing Co.'s networks into one and run its wireless and land-line calls.

TRANSPORTATION

American rejects pilots' proposal

American Airlines has rejected a union proposal to reduce possible pilot furloughs by trimming the number of hours they can fly each month. The airline and the union are continuing to talk, airline spokeswoman Tami McLallen said Tuesday. The world's largest carrier has offered 4 1/2 months of severance to persuade 200 pilots to leave or face layoffs and wants to increase monthly flying for those who remain.

UTILITIES / ENERGY

High court refuses Exxon Valdez case

Washington —- The Supreme Court has declined to decide whether ExxonMobil Corp. must pay interest to victims of the nation's worst oil spill that would roughly double the $507 million judgment the high court approved in June. In a brief order Tuesday, the court said the 9th U.S. Circuit Court of Appeals, based in San Francisco, should decide the matter of interest arising from the 1989 Exxon Valdez disaster.

Gas demand falls year-over-year

U.S. gasoline demand fell 3.8 percent last week, capping almost four consecutive months of declines, as the economy slowed and prices rose to records, a MasterCard Inc. report Tuesday showed. Motorists bought an average 9.462 million barrels of gasoline a day in the week ended Aug. 8, down from 9.835 million a year earlier, MasterCard said.