US-BUSINESS Summary

Wall St weighed by GDP, home prices data

NEW YORK expanded 2.8 percent, rather than the 3.5 percent pace the government estimated last month. While the data could signal an end to the recession, investors are looking for more robust growth to justify additional stock gains after a 22 percent rise in the S&P 500 this year.

U.S. Q3 economic growth revised down, house prices up

WASHINGTON - The U.S. economy grew more slowly than first thought in the third quarter, but a fifth month of gains in house prices in September and an improvement in consumer morale signaled the anemic recovery was intact. In its second estimate of third quarter gross domestic product published on Tuesday, the Commerce Department said the economy expanded at a 2.8 percent annual rate, rather than the 3.5 percent pace it estimated last month.

FDIC fund falls into the red, Bair urges lending

WASHINGTON - The fund used to safeguard U.S. bank deposits dropped to a negative balance of $8.2 billion in the third quarter, the first shortfall since 1992, the Federal Deposit Insurance Corp said on Tuesday. Although the FDIC still has $23.3 billion in cash resources to handle bank failures, its fund balance dipped to a negative balance due to an additional $21.7 billion the FDIC set aside in the quarter for future bank failures.

Rajaratnam gives detailed denial of insider charges

NEW YORK - Galleon Group hedge fund founder Raj Rajaratnam, accused in one of the biggest insider trading cases ever, on Tuesday gave a detailed denial of the charges and said government wiretaps violated his constitutional rights. Twenty people, including the Sri Lankan-born billionaire, face criminal charges, civil charges or both in an investigation in which court-approved wiretaps were used in a Wall Street insider trading probe for the first time.

Fed asks U.S. banks to submit TARP repayment plans

WASHINGTON - The U.S. Federal Reserve this month asked banks that were part of its "stress tests" to submit plans to repay government money, if they have not already repaid it, a person familiar with the situation said on Tuesday. Many U.S. banks are eager to repay money borrowed under the government's $700 billion Troubled Asset Relief Program. Participation in the program comes with limitations on pay, dividend payouts and share repurchases.

Saab sale for GM collapses; buyer backs out

DETROIT - A deal by General Motors Co <GM.UL> to sell its Saab brand collapsed on Tuesday when the buyer pulled out in a move that threatens the Swedish luxury brand with closure. GM had been aiming to close a deal by the end of next month to sell Saab to a partnership led by the Swedish luxury car builder Koenigsegg and backed by China's Beijing Automotive Industrial Holding Ltd.

EU drops antitrust case against Qualcomm

BRUSSELS/NEW YORK - The European Commission closed antitrust proceedings against Qualcomm <QCOM.O> as big technology companies dropped their four-year old complaints against the U.S. mobile chip supplier. The Commission's decision came as Ericsson <ERICb.ST>, the world's biggest mobile network equipment maker, and Texas Instruments <TXN.N>, Qualcomm's biggest wireless chip rival, both announced that they were withdrawing their complaints.

Heinz, Hormel optimistic about sales in 2010

CHICAGO - U.S. food makers H.J. Heinz Co <HNZ.N> and Hormel Foods Corp <HRL.N> said they expect sales to rise in the coming months as consumers stick to more frugal habits such as eating meals at home instead of going out. Still, results in the latest quarter failed to impress investors, who had expected both companies to get more of a lift from Americans' constrained dining habits in the downturn.

Warner Music posts surprise loss as costs rise

NEW YORK - Warner Music Group <WMG.N>, the world's third largest music company, on Tuesday reported a surprise quarterly loss as higher interest expense and operating costs cut into the record label's margins. Top selling artists in the period included Jay-Z, Madonna and Japanese acts Kobukuro and Superfly, but the company noted that the shrinking demand for CD's and the weak economy hurt its revenue and is likely to affect future results.

Playboy to outsource magazine ops to American Media

NEW YORK - Playboy Enterprises Inc <PLA.N> will outsource all its publishing operations except for editorial to American Media Inc in a bid to cut costs and return its namesake magazine to profitability in two years. The company said on Tuesday that Playboy magazine is forecast to lose $8 million in 2009, and this outsourcing move would reduce that loss by $5 million in 2010 before it reaches profitability in late 2011.