Business Today

FED REPORTS STRENGTH: The economic recovery strengthened in September and early October as retailers reported robust sales and manufacturing expanded, the Federal Reserve said Wednesday in its survey of its 12 Fed districts, known as the beige book. "Most districts continued to describe labor markets as slack, though there are modest signs of improvement." The Federal Reserve Bank of Atlanta, which includes Florida, said employers in the region were "reluctant to add to payrolls, and wage increases were modest." Manufacturing appeared to be stabilizing and "transportation contacts reported increased freight volumes in September." Mortgage refinancing was declining.

SHOPPERS REST THEIR HEELS: America's shoppers took a breather in September, dropping sales at the nation's retailers by 0.2 percent. Although the dip in retail sales reported by the Commerce Department was the first since April, it came after consumers, aided by President Bush's third tax cut, went on a buying binge in July and August. Retail sales went up by a strong 1.4 percent in July and then by 1.2 percent in August, according to revised figures.

HELP FOR ID THEFT VICTIMS: Florida launched a program Wednesday aimed at curtailing identity theft and helping its victims restore their good credit and reputations. The attorney general's office set up a Web site that helps people report identity theft, clean their credit records and clear their names of crimes they did not commit. It also gives tips on how to prevent identity theft. The Department of Law Enforcement also will begin issuing documents designed to help victims dispute background checks.

JURY TAKES QUATTRONE CASE: Frank Quattrone's obstruction trial went to a jury Wednesday, with prosecutors and the defense offering two different ideas of what the star banker at Credit Suisse First Boston was thinking when he urged employees to destroy files. Late in the day, one juror reported in a note to U.S. District Judge Richard Owen that her mother had suffered a heart attack, presenting the possibility the case will be decided by 11 jurors. Owen was to take up the matter today.

SOUTHTRUST CHANGES CEO: Julian Banton, chairman and chief executive of SouthTrust Bank, is retiring and has turned over the top titles to bank president Glenn Eubanks, the Birmingham, Ala., institution said Wednesday. Banton will relinquish the role of president of SouthTrust Corp. and leave the board Dec. 31. Banton, 63, is leaving "to spend more time with his family," bank spokesman David Oliver said. "He's had a good, long, successful career here."

PARADYNE SETTLES CLASS ACTION: Paradyne Networks Inc., a Largo company that makes equipment that funnels high-speed Internet service through phone lines, paid $3-million to settle a class action shareholder lawsuit. The company admitted no wrongdoing in the settlement, in which plaintiffs argued that the company misled shareholders in 2000 about the company's performance. Covered by insurance, the settlement was paid to settle what began as six different shareholder suits.

BAHIA BEACH RESORT SOLD: EarthMark Companies of Fort Myers has acquired the Bahia Beach Island Resort and Marina near Ruskin and relaunched it as the Mariner's Club Bahia Beach. The property located on a 124-acre island in Tampa Bay features restaurants, meeting space, a marina and 96-room hotel.

BANK ONE TRADERS RESIGN: The head of the mutual fund unit at Bank One Corp. has resigned as part of several management changes made following allegations that the company allowed improper trading, the bank said Wednesday. Bank One chairman and CEO Jamie Dimon announced the actions in a note to employees and clients. Dimon said an internal investigation found no evidence that Bank One or any of its employees had made illegal after-market trades. But he said in his note that the Canary Capital Management hedge fund, which is at the heart of a late-trading and market-timing scandal sweeping the mutual fund industry, was given permission to trade the company's 11 One Group funds "more frequently than other customers" - an apparent reference to market timing.

International Business Machines Corp.: Bountiful services contracts helped third quarter profits at IBM match analysts' expectations Wednesday, and the technology bellwether offered an unusual dose of optimism about the industry's prospects for a turnaround. IBM executives had been guarded about the future in previous earnings reports, but chairman and chief executive Sam Palmisano said in a statement Wednesday that "we are beginning to see signs that the economy has stabilized." Palmisano said IBM expects to add 10,000 new jobs around the world next year.

Apple Computer Inc.: Boosted by strong sales of its popular music player and new computers, Apple reported fourth quarter earnings that narrowly beat Wall Street expectations. Excluding a $6-million after-tax investment gain and a $9-million gain from a stock repurchasing agreement, Apple said it would have earned $29-million, or 8 cents per share. Apple CFO Fred Anderson attributed the increase in revenue - the company's highest level for a quarter in three years - to record sales of the iPod music player and strong sales of its new 15-inch laptop and Power Mac G5 computers.

General Motors Corp.: GM swung to a profit of $425-million in the third quarter from a loss of $804-million a year ago, but global automotive earnings fell 91 percent because of intense pricing pressure in North America and unfavorable exchange rates overseas. The company was upbeat looking ahead, saying it expected to exceed its original 2003 earnings target of $5 a share. "The accelerating U.S. economy and enthusiastic response to our new products gives us reason for optimism," said chairman and chief executive Rick Wagoner.

Allstate Corp.: Allstate more than doubled its third quarter net profit as the auto and home insurer benefited from higher premiums, fewer claims than expected and a favorable comparison to a year ago. Operating income jumped 24 percent despite a substantial hike in catastrophe losses, primarily because of Hurricane Isabel - events generating more than $1-million in claims to the company.