Business Highlights

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Business Highlights

Americans spend a bit more as economy limps along

WASHINGTON (AP) — Americans are spending a little more this summer, but hardly enough to rejuvenate the weakening economy.

What is needed is a bigger boost in salaries and more jobs. Economists don’t see either coming this year, which is why the economy is likely to limp along.

Still, modest gains in spending were a welcome sign after a string of economic reports last week raised fears of the country slipping back into a recession.

Consumer spending rose 0.4 percent in July, with much of the strength coming from increased demand for autos, the Commerce Department reported Monday. It was the best showing since March, but it followed three lackluster months when spending was essentially flat.

Americans did earn a little more in July after seeing their incomes unchanged in June. Still, the 0.2 percent increase was mostly the result of small wage and salary gains that fell far below increases seen in more robust economic recoveries, economists said. And some of the gains came from a jump in Social Security payments.

Intel buying German chipmaker’s wireless unit

NEW YORK (AP) — Intel Corp. is buying the wireless communications unit of Germany’s Infineon Technologies AG for $1.4 billion in cash, the second deal in as many weeks that allows the chip-maker to expand beyond the struggling personal computer market.

Intel has tried with limited success to get its chips into cell phones. It is hoping to change that by buying Infineon’s wireless business, which makes chips for smart phones such as Apple Inc.’s iPhone.

It’s a problem Intel is urgently trying to fix because the smart phone market is too lucrative for Intel to remain a bit player.

Genzyme rejects Sanofi-Aventis offer

NEW YORK (AP) — Biotechnology company Genzyme Corp. said Monday it rejected Sanofi-Aventis SA’s $18.5 billion buyout offer because it undervalues the company.

On Sunday, French drug developer Sanofi-Aventis offered $69 per share for Genzyme, which has been struggling in the aftermath of manufacturing problems for key drugs.

Genzyme shares traded above the offering price Monday, suggesting shareholders expect the bid to go higher.

Stocks drop as investors enter week cautiously

NEW YORK (AP) — Stocks fell Monday after more signs of slowing economic growth got investors worried ahead of a key report on jobs later this week.

The Dow Jones industrial average lost ground throughout the day and closed with a loss of 141 points. Other indexes also fell more than 1 percent. Bond prices rose, sending interest rates lower, as money moved back into the Treasury market.

The latest cause for worry on the economy came in a report early Monday showing that personal incomes rose less than expected in July. That added to a series of discouraging economic indicators recently suggesting that growth could slow down in the second half of the year.

Updated car stickers to include environmental info

WASHINGTON (AP) — Will your new car get an A in fuel efficiency? A government proposal may add letter grades to showroom window stickers on new cars and trucks to reflect a vehicle’s overall fuel economy and greenhouse gas emissions.

The Transportation Department and Environmental Protection Agency said Monday they were considering two options to upgrade the energy and environmental information that will adorn labels on new vehicles in car dealership showrooms, beginning with the 2012 model year. The government is considering a letter grade approach or updating the design of the current sticker to include comparisons of a vehicle’s fuel economy and tailpipe emissions.

Consumers scan the window stickers to compare vehicles when shopping for a new car or truck. The stickers have not been updated significantly in three decades and the government wants the labels to reflect emerging vehicle technologies and account for greenhouse gas emissions affecting the environment.

Chrysler dealers hear plans to sell Fiat minicars

DETROIT (AP) — Fiat is coming back to the U.S. after a 30-year absence, and now Chrysler Group dealers have to decide whether they want to sell the Italian brand that initially will offer just one model, the tiny Fiat 500.

At a meeting in Detroit Monday, about 400 Chrysler, Dodge and Jeep dealers who want to sell Fiats were told that the exotic minicar at first will be the only 2011 model in their Fiat showrooms.

Chrysler, which is now controlled by Italy’s Fiat, was short on specifics such as price and future models. A larger model was promised, although covered by a tarp.

Chrysler hopes to sell 50,000 of the stylish, bulb-shaped 500s the first year they arrive.

3M to acquire Cogent for about $943 million

NEW YORK (AP) — 3M Co., the conglomerate whose products range from Post-Its to respirators, computer arms and films for LCD TV screens, is trying to expand into the security market by buying Cogent Inc. for about $943 million.

Cogent develops automated systems that read finger and palm prints, and it makes iris and face recognition systems used by government, law enforcement and border patrol agencies.

Cogent’s board of directors already has agreed to the deal and is recommending that shareholders accept it. 3M said Monday it will pay $10.50 per share for Cogent, or nearly 18 percent above Cogent’s closing price on Friday.

Google, AP strike new deal on Web licensing rights

SAN FRANCISCO (AP) — Google Inc. has retained the right to publish content from The Associated Press under a new licensing deal that thaws the sometimes-frosty relationship between the two companies.

The multiyear agreement announced Monday has two key components: an undisclosed payment for the rights to AP’s content, and a data-sharing arrangement aimed at helping the news cooperative make more money across the Internet.

The contract’s financial terms and duration weren’t disclosed.

The Google deal is part of AP’s effort to bring in more revenue from the Web as less money comes in from newspapers and broadcasters hard hit by an advertising slump. As part of that process, AP renewed its licensing agreement with Yahoo Inc. earlier this year and is trying to strike a new deal with Microsoft Corp.

Japan eases policy, plans new economic stimulus

TOKYO (AP) — Japan’s government and the central bank threw the economy a double lifeline Monday, seeking to contain a strong yen and revive a faltering recovery.

To boost liquidity, the central bank unveiled a new six-month low-interest loan program to financial institutions. Combined with an existing three-month funds-supplying operation worth 20 trillion yen ($236 billion), banks will now have access to a total of 30 trillion yen ($355 billion).

The 8-1 decision by the central bank’s policy board was accompanied by an unanimous vote to keep its key interest rate at a super-low 0.1 percent.

The central bank’s move, which disappointed investors and analysts hoping for bolder action, was followed several hours later by Prime Minister Naoto Kan’s plans for a new economic stimulus package worth 920 billion yen ($10.9 billion). Those steps were also criticized as inadequate.

India BlackBerry ban averted for 60 more days

MUMBAI, India (AP) — India said it withdrew a threat Monday to ban BlackBerry services for at least two more months after the device’s maker, Research In Motion Ltd., agreed to give security officials “lawful access” to encrypted data.

The Ministry of Home Affairs, which wants real time access to encrypted corporate e-mails and instant messaging, said in a statement it would review RIM’s security proposals over the next 60 days after the Department of Telecommunications studies the feasibility of routing BlackBerry services through a server in India.

It remains unclear precisely what concessions Research In Motion agreed to in order to avert the ban.

The Dow Jones industrial average fell 140.92, or 1.4 percent, to close at 10,009.73. The Standard & Poor’s 500 index fell 15.67, or 1.5 percent, to 1,048.92, while the Nasdaq composite index fell 33.66, or 1.6 percent, to 2,119.97.

Benchmark crude for October delivery lost 47 cents to settle at $74.70 a barrel on the New York Mercantile Exchange.

In other Nymex trading in September contracts, heating oil fell 1.91 cents to settle at $2.0252 a gallon and gasoline lost 1.38 cents to settle at $1.9341 a gallon.

October natural gas added 10.7 cents to settle at $3.812 per 1,000 cubic feet.

In London, Brent crude fell 5 cents to settle at $76.60 a barrel on the ICE futures exchange.