U.S. wholesale stockpiles inch up 0.1%

WASHINGTON » U.S. wholesalers increased in their stockpiles only slightly in July after three monthly declines, while their sales barely rose. The tepid gains add to worries about slower economic growth in the July-September quarter.

The Commerce Department said Wednesday that wholesale stockpiles rose just 0.1 percent in July from June. That followed a 0.3 percent decline in June.

Sales rose just 0.1 percent in July, the smallest gain since December. Still, that’s the fourth straight month that sales have risen.

Some economists had thought that wholesalers would ramp up their stockpiles in July after cutting them from April through July. The smaller increase could weigh on economic growth in the third quarter. More restocking boosts factory production, driving overall growth.

Verizon’s $49 billion bond sale sets record

NEW YORK » Verizon raised $49 billion on Wednesday in the largest corporate bond deal ever.

The sale dwarfs the previous record, Apple’s sale of $17 billion in bonds in April, and proceeds from the sale on Wednesday will help Verizon buy the rest of its U.S. wireless business from partner Vodafone.

That $130 billion buyout of Vodafone is expected to rank as the second-largest deal when completed. Along with the money from its bond sale, Verizon will use cash and stock to pay for the buyout.

Economists back Yellen to lead the Fed

WASHINGTON » More than 350 economists have signed a letter to President Barack Obama calling on him to nominate Federal Reserve Vice Chair Janet Yellen to be the Fed’s next chairman. The letter is designed to draw attention back to Yellen amid signs that Obama is leaning toward nominating his former economic adviser, Larry Summers.

The letter, whose signers include economists with past ties to Obama, credits Yellen for prescience in warning in 2005 about an impending real estate meltdown, for her consensus style of leadership and for her commitment to job growth.

Obama is expected to announce his nomination as early as this month. Fed Chairman Ben Bernanke’s term ends Jan. 31.

Airlines defend merger amid federal suit

DALLAS » American Airlines and US Airways say that the government’s opposition to their planned merger shows that it doesn’t understand the airline industry.

The Justice Department and several states sued last month to block the merger, on the grounds that it would hurt consumers.

The airlines said in court filings that the U.S. Justice Department’s analysis of the merger ignores competition that now exists from low-cost carriers such as Southwest. American says that the government instead relies on "anecdotes involving small numbers of passengers" and an idealized but outdated vision of the industry.

Daily Beast editor reportedly on way out

NEW YORK » Tina Brown, the editor who oversaw the ill-fated merger of Newsweek and The Daily Beast website, is parting ways with the company.

That’s according to a report by Buzzfeed business editor Peter Lauria, a former Daily Beast correspondent.

The website reported that Brown’s contract expires in January and will not be renewed. Brown, the former editor of Vanity Fair and The New Yorker, may take with her the Women in the World conference as part of her severance agreement.

A spokeswoman for IAC/InterActiveCorp, which owns The Daily Beast, declined to comment.

ON THE MOVE

Starn O’Toole Marcus & Fisher has hired:

» Mateo Caballero as a litigation associate. He practices in the areas of commercial litigation and federal tax.

» Christina N. Ohira as a transactional associate. She practices in the areas of commercial transactions and real estate.

Xerox Hawaii has promoted Tiffany Rabacal-Harper to account manager from marketing representative. She joined the company in January 2010 and previously served as an account executive for Ricoh Business Solutions.

Akaku Maui Community Television has announced the following appointments: 

» Kat Tracy to director of education.

»  Stephen "Tree" Luksic to director of the production departments.

SHIFTING GEARS

$811M stock sale trims government investment in GM

DETROIT » The government is getting closer to selling all of its General Motors Co. stock.

The Treasury Department said in its August report to Congress that it sold $811 million worth of GM common stock last month.

The report dated Tuesday says the government has recovered about $35.4 billion of the $49.5 billion bailout it gave the Detroit automaker. That means taxpayers are still $14.1 billion in the hole.

The Treasury says the price per share of stock sold in July and August will be revealed at a later date.

When the government finally sells all of its shares, it will end a sad chapter in GM’s history.

The company nearly ran out of cash in 2008 and needed government money to survive a trip through bankruptcy reorganization. Since then GM has posted 14 straight profitable quarters