AUTOMOTIVE

BMW's global sales increase 2.2%

German automaker BMW AG said Thursday that global sales of its vehicles rose 2.2 percent in July, with its BMW, Mini and Rolls-Royce brands posting increases. In a nod to buyers looking for more fuel efficiency, the company also said sales of its motorcycles jumped last month compared with July 2007. The company said it sold 125,812 cars last month, compared with 123,089 in the same month a year ago.

Chrysler considers tie-in with Nissan

Chrysler LLC and Nissan Motor Co. are in talks over an agreement to jointly produce midsize cars, according to a published report. Chrysler is discussing an agreement with Nissan under which the Japanese automaker would produce midsize sedans that Chrysler would sell in the United States under its own brand, The Wall Street Journal reported Thursday. Nissan spokesman Fred Standish noted that the two companies have announced partnerships earlier this year, but he declined to comment further.

Lexus at top of dependability list

New York —- Lexus again stands alone atop a closely watched ranking of vehicle dependability after Buick slipped from the No. 1 spot it shared with the Japanese luxury brand last year, J.D. Power and Associates said Thursday. It's the 14th straight year Toyota Motor Corp.'s high-end brand has held the top position in the annual study, which measures problems experienced by the original owners of vehicles after three years. Lexus had 120 problems per 100 vehicles, down from 145 last year. Ford Motor Co.'s Mercury brand ranked second, followed by General Motors Corp.'s Cadillac. Toyota was fourth, and Honda Motor Co.'s Acura luxury brand was fifth with Buick slipping to sixth. Land Rover, which Ford sold this year to India's Tata Motors Ltd., was the worst-performing brand.

ECONOMY

Euro zone rates left unchanged

Frankfurt, Germany —- The European Central Bank and the Bank of England left their benchmark interest rate unchanged at 4.25 percent Thursday under conflicting pressure from higher inflation and mounting concern about growth.

Consumers borrow at faster pace

Washington —- Consumers —- fortified by the government's rebate checks —- boosted their borrowing in June at the fastest pace in seven months. The Federal Reserve reported Thursday that consumer credit increased at a brisk annual rate of 6.7 percent in June. That was up from a 3.8 percent growth rate in May. It marked the biggest increase since November, when consumer borrowing grew at an 8.2 percent pace. Debt rung up by consumers rose by $14 billion in June from the previous month to a total of $2.59 trillion.

FOOD / BEVERAGE

Tyson recalls mislabeled chicken

Springdale, Ark. —- Tyson Foods Inc. is recalling more than 51,000 pounds of frozen raw chicken breast tenderloin over concerns it may contain soy. The world's largest meat processor said Thursday that soy was not declared on the label. Tyson says the meat came from a plant in Vicksburg, Miss., between July 23 and Aug. 1 and was shipped to food service distributors nationwide.

LEGAL

Former brokerage owner sentenced

New York —- The former owner of one of the world's biggest commodities brokerages was sentenced to 10 years in prison Thursday for a fraud that cost investors more than $2 billion. Tone N. Grant, 64, of Chicago, was convicted in April in a scheme to defraud investors at Refco Inc., a large financial services company that offered securities, derivatives and commodities brokerage services to investors.

Indian plaintiffs win $455 million

Washington —- A federal judge ruled Thursday that American Indian plaintiffs are entitled to $455 million in a long-running trust case, a fraction of the $47 billion they wanted. But U.S. District Judge James Robertson did not say how the government should award the money, writing that his opinion "leaves for another day the question of how and to whom the award should be distributed." Robertson's final number is close to government estimates and far from the billions sought by plaintiffs in the 12-year trial. The lawsuit —- filed on behalf of a half-million American Indians and their heirs —- claims they were swindled out of billions of dollars in oil, gas, grazing, timber and other royalties overseen by the Interior Department since 1887.

MEDIA

Disney to aim channel at boys

Walt Disney Co., which has made billions catering to the princess fantasies of young girls, plans to relaunch Toon Disney as Disney XD, a cable channel targeting boys. The move, under wraps for more than a year, is an attempt by the company to capture a market that has long eluded it. Starting in February, Disney XD will seek to become to young dudes what the Disney Channel, with its lineup of tweeny-bopper programs such as "Hannah Montana," is to girls. Disney XD will offer original action-adventure and comedy series, movies, animation and sports-themed shows.

REAL ESTATE

30-year mortgage rates unchanged

Washington —- Rates on 30-year mortgages didn't budge this week, while rates on other home loans were a mixed bag. Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.52 percent. That was the same as last week's rate. Meanwhile, rates on 15-year fixed-rate mortgages, a popular choice for refinancing, rose to 6.10 percent this week from 6.07 percent last week. Other rates, however, went down. Rates on five-year, adjustable-rate mortgages averaged 6.05 percent this week. That was down from 6.07 percent last week. Rates on one-year, adjustable-rate mortgages dipped to 5.22 percent, compared with 5.27 percent.

Pending home sales rise in June

Washington —- A measurement of pending home sales rose in June in a rare piece of positive news for the beleaguered market. The National Association of Realtors' seasonally adjusted index of pending sales for existing homes rose 5.3 percent to 89 from May's reading, which was revised downward to 84.5 from an earlier reading of 84.7. The June index was 12 percent below year-ago levels. Home sales are considered pending when the seller has accepted an offer, but the deal has not yet closed. Typically there is a one- to two-month lag before a sale is completed.

REGULATORY

Citigroup settles auction-rate probe

Citigroup Inc. agreed to buy back or help clients unload $19.5 billion in auction-rate securities and pay a $100 million fine to settle U.S. regulatory claims it improperly saddled customers with untradeable bonds. Citigroup will buy back about $7.5 billion in securities from individual customers, charities and small businesses under a settlement with New York State Attorney General Andrew Cuomo, the Securities and Exchange Commission and a group of states, the SEC said in a statement Thursday. Elsewhere, Merrill Lynch said it will buy back auction-rate securities from its clients over a one-year period beginning Jan. 15. The investment bank's retail clients own an estimated $12 billion of the securities.

Tobacco regulation bill has loophole

Washington —- A loophole in a sweeping tobacco regulation bill would give the industry a 21-month window to introduce some new products without first getting federal approval. The House last month overwhelmingly passed the legislation, which for the first time would empower federal public health authorities to regulate tobacco. Some tobacco foes say the bill's 21-month escape clause would let companies start marketing cigarettes and other products in the development pipeline before the Food and Drug Administration has fully ramped up to regulate them. But the office of Sen. Edward M. Kennedy (D-Mass.), a main author of the bill, disagreed. The provision is to give the FDA some breathing room to set up its new tobacco division, not a favor to the industry, according to Kennedy's staff.

EPA refuses to cut ethanol mandate

Lubbock, Texas —- The Environmental Protection Agency on Thursday denied a request from Texas Gov. Rick Perry to cut the federal ethanol mandate in half for a year. An energy bill passed in December required 9 billion gallons of ethanol to be blended into gasoline this year and about 11 billion gallons next year. Perry asked the EPA in April to drop the Renewable Fuels Standard requirement to 4.5 billion gallons because demand for ethanol is raising corn prices for livestock producers and driving up food prices.

SEC subpoenas Countrywide

Countrywide Financial Corp., the home lender acquired last month by Bank of America Corp., has received subpoenas from the Securities and Exchange Commission as part of a formal investigation. Bank of America said it also received subpoenas regarding sales of auction-rate securities and municipal derivatives. The SEC investigation probably relates to whether former Countrywide Chief Executive Angelo Mozilo sold shares before disclosing information about the company's finances, said David Lykken, co-founder of Mortgage Banking Solutions, an Austin, Texas-based consulting firm. "That has been a glaring issue in front of everybody," Lykken said.

TECHNOLOGY

Google could face write-down

In an assessment that could lead to a substantial charge against its future profits, Google Inc. believes its $1 billion investment in advertising partner AOL is souring. The Mountain View, Calif.-based company disclosed in a regulatory filing late Thursday that the 5 percent AOL stake it bought in 2005 "may be impaired." Impairment is an accounting term used to describe an acquisition or investment that has eroded. Unless there is an about-face, the acquiring company eventually must absorb a charge on its books.

TRANSPORTATION

American raises upgrade fees

It will soon cost you $50 to upgrade from economy coach on U.S. trips aboard American Airlines. American, which invented the mileage program 25 years ago, notified customers Thursday it will raise fees and miles needed for upgrades and free trips. Under changes that take effect Oct. 1, an upgrade from economy coach on a one-way domestic flight will cost $50, plus the previously required 15,000 miles. A round-trip upgrade would be $100 and 30,000 miles.

United could forfeit plane deposits

United Airlines may forfeit $91 million from advance deposits on 42 Airbus SAS planes if it decides to cancel those orders. The airline no longer expects to take delivery of these aircraft, United's parent, Chicago-based UAL Corp., said in a July 24 regulatory filing. The orders haven't been terminated yet, UAL said. United's commitment for the Airbus A319 and A320 jets is $2.2 billion. The carrier took a one-time expense in the second quarter to write off the $91 million deposit, UAL said in the filing.

McCain wants review of UPS deal

Republican presidential candidate John McCain called Thursday for a Justice Department review of Deutsche Post AG's plan to have its DHL unit hire a competitor, Sandy Springs-based UPS, to transport packages by air. "The Justice Department should conduct a thorough investigation as soon as possible," McCain said after meeting with residents of Wilmington, Ohio, which would lose pilot jobs if the deal is implemented. "Should this happen, DHL will cede significant elements of control over cost and service to one of its chief competitors This raises serious concerns."