AP Business NewsBrief at 2:35 p.m. EST

Fed says jobless rate to drop 'slowly'news://newsclip.ap.org/[e-mail]

WASHINGTON (AP) — The Federal Reserve expects the unfolding recovery will be gradual, as modest growth keeps the nation's unemployment rate elevated over the next several years, according to a new forecast. Most Fed policymakers said it could take "five or six years" for the economy and the labor market to get back on a path of full health.

Banks earn $2.8B in 3Q; FDIC says dangers persistnews://newsclip.ap.org/[e-mail]

WASHINGTON (AP) — The apparent end of the recession and stabilizing financial markets have not cured the banking industry, as souring and past-due loans have reached the highest levels in 26 years, the Federal Deposit Insurance Corp. said Tuesday. Banks earned $2.8 billion in the third quarter, but loan balances plummeted and the fund that insures their deposits was $8.2 billion in the red.

Saab future unclear as sale to Swedish firm failsnews://newsclip.ap.org/[e-mail]

DETROIT (AP) — A Swedish specialty automaker has backed out of a deal to buy Saab from General Motors Co., casting serious doubt on the future of the troubled brand. Koenigsegg Group AB said Tuesday it has decided to end the deal, which was announced in June. Financial details of the acquisition were not disclosed by GM. The Detroit automaker had been trying to unload the Swedish brand as it restructured under Chapter 11 bankruptcy protection earlier this year.

Reports on GDP and consumers signal modest reboundnews://newsclip.ap.org/[e-mail]

WASHINGTON (AP) — The economy is growing modestly, with consumers too wary about spending to invigorate the recovery. That's the picture that emerged from reports Tuesday on the economy and the confidence of consumers, who power 70 percent of it.

Reports on consumer confidence, GDP tug at stocksnews://newsclip.ap.org/[e-mail]

NEW YORK (AP) — Stocks retreated from 13-month highs after a lackluster reading on consumer confidence and a report showing slower economic growth sapped the market's optimism. Major indexes fell less than 0.5 percent Tuesday, as sharp declines in financial and industrial stocks were tempered by gains in health care companies.

CPSC chief pledges swift action after crib recallnews://newsclip.ap.org/[e-mail]

WASHINGTON (AP) — The head of the Consumer Product Safety Commission promised swift action to get dangerous products off the market, after acknowledging Tuesday that it didn't move quickly enough on a record recall of more than 2 million cribs linked to four deaths. "We were not advancing this case as quickly as possible," Chairman Inez Tenenbaum said in an interview with The Associated Press. "So, I put all of the resources for the agency on this project so that they could accomplish this goal of recalling the crib."

Crude prices sink below $76 per barrelnews://newsclip.ap.org/[e-mail]

Oil prices fell below $76 a barrel Tuesday with new data showing a slow U.S. economic recovery and consumer confidence that remains lukewarm at best. The dollar also gained against other major currencies, which can keep energy prices in check.

Heinz 2Q profit falls 16 percentnews://newsclip.ap.org/[e-mail]

PORTLAND, Ore. (AP) — H.J. Heinz Co.'s says its business is thriving in emerging markets but the recession continued to drag down its U.S. and European sales during the second quarter as shoppers limited spending or chose lower-priced products. "Even though the global recession appears to be abating, there's no question that consumers and customers remain intensely focused on value, which they are more often defining as price," said Heinz CEO Bill Johnson "Consumers in particular are looking for bargains wherever they shop for food and household items."

US Airways defers delivery of 54 aircraftnews://newsclip.ap.org/[e-mail]

TEMPE, Ariz. (AP) — US Airways said Tuesday it will delay delivery of 54 Airbus jets until at least 2013 as it tries to bolster its financial strength. The company said delaying the deliveries will reduce its aircraft capital expenditures over the next three years by $2.5 billion.

Top 2 booksellers report losses, their shares fallnews://newsclip.ap.org/[e-mail]

NEW YORK (AP) — Barnes & Noble Inc. and Borders Group Inc., the nation's two largest brick-and-mortar book sellers, both posted quarterly losses Thursday and forecast a difficult holiday season, saying competition from discount chains and online retailers is stiffening. Barnes & Noble, the larger of the two, also cut its forecast for annual profit, and shares of both retailers fell.

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