Your update of the most important business news from dozens of respected news sources, selected by the editors of BusinessWeek.

Early Edition August 01 2008 at 03:41 AM Chi-Chu Tschang and Harry Maurer

Olympic Sponsors Giving Up on Games

With the opening ceremonies for the Beijing Games just days away, multinational sponsors of the Olympics are already looking more critically at whether the payback will be worth it for future Games. Of the 12 global sponsors for the Beijing Olympics, only eight have signed on for the 2012 Summer Games in London.

Among the high-profile sponsors deciding to back away are Lenovo, Johnson & Johnson and Manulife Financial. Even longtime Olympic supporter Eastman Kodak (EK), a sponsor since 1986, has pulled the plug. "It's just not the best way for us to spend our money," says Kodak Chief Executive Antonio Perez.

Source: BusinessWeek

Preparing for the worst at GM

After a downgrade of GM by S&P on Thursday, investors are bracing for more bad news when the automaker reports its quarterly numbers today. S&P expects GM to lose about $4 billion a quarter this year. "People are prepared for the worst, but it is still going to be pretty ugly," said Mirko Mikelic, a portfolio manager at Fifth Third Bank.

Source: Reuters

Gloomy Outlook from BMW

German automaker BMW announced a 33% drop in quarterly profit and said business would remain challenging next year. "Business conditions for the automobile industry have deteriorated sharply over the past weeks," the company said on Friday.

Source: Wall Street Journal

The Fed's Fear of a Wage Spiral

Although the typical American worker has not received a significant raise all decade, the Fed's policymakers believe they need to be wary of upward pressure on wages. They're haunted by the wage-price spiral during the last big oil shock in the 1970s.

Source: New York Times

South Korean Exports Surge

South Korea's exports in July rose 37%, the biggest monthly increase in four years. While Japan's month exports fell for the first time in five years, the Korean export engine kept humming thanks to increased demand from emerging markets.

Source: Financial Times

Chavez Announces Nationalization of Spanish-Owned Bank

Venezuelan President Hugo Chavez said in a televised speech on Thursday his government plans to nationalize Bank of Venezuela, owned by Spain's Santander banking group. Chavez has already nationalized the country's biggest telephone, electricity, steel and cement companies.

Source: Associated Press

CBS to Sell 50 Radio Stations

CBS plans to sell 50 radio stations in midsized markets and focus more on large cities such as New York and Los Angeles, the company said on Thursday. CBS reported a 1% increase in earnings for the second quarter thanks to syndication overseas of its "CSI" franchise.

Source: MarketWatch

British Airways Profits Plunge

Quarterly earnings at British Airways fell 90% to $54 million, the company announced on Friday. "`We are in the worst trading environment the industry has ever faced,'' Chief Executive Officer Willie Walsh said.

Source: Bloomberg

Congress Moves on Permanent Ban on In-Flight Cell Phones

The ban on using mobile phones on commercial aircraft is closer to becoming enshrined in law after a House committee approved the Halting Airplane Noise to Give Us Peace - aka Hang-Up - act. The legislation, which now goes to the full House, would not affect in-flight text messaging and email.

Source: CNet

Conversation of the Day: The Frozen U.S. Economy

Reader Jason Brown writes: "Like us here in the South Seas, you're going to have to get used to living on a small island, with uncertain supplies. Look after planet Earth first, yourselves second."

Tell Us: Are We Facing Global Economic Freezing?