Business briefs for July 15

Foreclosure activity slows in 2011

The number of homes taken back by lenders in the first half of this year fell 30 percent compared with the same 2010 period, the result of delays in foreclosure processing that threaten to stall a U.S. housing recovery.

Banks seized 421,212 homes in the first six months of the year, down from 529,633 between January and June last year, foreclosure listing firm RealtyTrac Inc. said Thursday.

The Tampa, St. Petersburg and Clearwater area had 15,427 foreclosure filings in the first six months of 2011, a 55 percent drop from the previous six months when 34,533 homeowners received a notice.

The decline reflects lenders taking longer to move against homeowners who have fallen behind on their mortgage payments.

Digital music service Spotify launches in U.S.

Digital music service Spotify arrived in the United States on Thursday, aiming its addictive, free song service at American listeners in the hope that they will then pay for more features, just as nearly 2 million have done in Europe.

Spotify gives people access to more than 15 million songs on computers for free, with a few 15-second ads. People can pay $5 a month to listen on computers without ads, or $10 a month for listening on mobile devices, too.

Spotify is the latest to offer a subscription plan with the cooperation of the major music labels. So far, such plans have not been popular enough to reverse a decadelong slide in music sales, which has been mainly caused by piracy.

Google's earnings soar past estimates

Google has ushered in new CEO Larry Page with second-quarter earnings that were far better than analysts expected.

Google earned $2.5 billion, or $7.68 a share, in the April-June period. That's a 36 percent increase from $1.84 billion, or $5.71 a share, a year ago.

Revenue increased 32 percent to $9 billion. After subtracting Google's advertising commissions, revenue stood at $6.9 billion. That also beat analyst projections.

Yum Brands bracing for U.S. profit decline

Fast-food restaurant operator Yum Brands Inc. said Thursday that its domestic business remains in the doldrums as Taco Bell, its most profitable brand in the U.S., struggles to recover from publicity surrounding a dropped lawsuit over the beef content of its taco filling.

One day after the owner of Pizza Hut, KFC and Taco Bell reported a 10 percent rise in second-quarter profit, mainly driven by surging business in China, the company said it's bracing for another round of operating profit declines in the U.S.

Fixed-mortgage rates fall toward 2011 lows

Fixed-mortgage rates fell this week, and the rate on the 15-year loan dropped to its lowest point of the year.

The average rate on the 30-year loan decreased to 4.51 percent from 4.60 percent a week ago, Freddie Mac said Thursday. It reached its yearly low a month ago, at 4.49 percent.

The average rate on the 15-year fixed mortgage, popular for refinancing, fell to 3.65 percent from 3.75 percent. Its previous low this year was 3.67 percent, reached three weeks ago.

ConocoPhillips to split into two companies

Oil giant ConocoPhillips said Thursday that it will split into two companies: one that produces oil and another that refines it into gasoline and other fuels.

The move continues an about-face for a company that spent billions of dollars during the past several years growing into America's third-largest oil company. After snapping up Burlington Resources for $35 billion and making multibillion-dollar investments in Russia's Lukoil and the Rockies Express gas pipeline, Conoco was deep in debt. The company has been trying to shed assets since last year.

EU hopes stress tests boost faith in banks

European regulators will release potentially unsettling details on the finances of 90 banks today to increase transparency and convince markets that the financial system as a whole could withstand big shocks, such as a Greek debt default.

The publication of the results of the stress tests by the European Banking Authority is supposed to reduce the uncertainty hobbling banks' activities through disclosure of details, including who holds how much in bonds issued by Greece and other shaky eurozone governments.

Italian Senate passes key austerity package

The Italian Senate on Thursday approved a crucial 70 billion euro ($99 billion) austerity package aimed at convincing investors that the eurozone's third-largest economy won't be swept into the debt crisis.

Italy fast-tracked approval of the package, which is due for a final vote in the lower house of parliament on Friday, and increased its size after markets plummeted this week on worries over the country's financial stability.

U.S. officials to refine plan on solar zones

Interior Secretary Ken Salazar says federal officials will refine a plan for speeding up solar energy development on public land in six western states, after receiving about 80,000 public comments on the plan.

In December, the Interior Department released a draft identifying 24 solar development zones in California, Nevada, Colorado, Utah, New Mexico and Arizona with the highest potential for solar development with the fewest environmental conflicts.

Ralcorp and Post Foods to split

Ralcorp Holdings Inc. is spinning off its Post Foods cereal unit to focus on building its business making generic foods that grocers and other retailers sell.

Ralcorp said Thursday that it will separate the two businesses in a tax-free spinoff that will be complete in four to six months. Under the arrangement, Post will issue up to $1.2 billion in debt and give about $1 billion in cash to Ralcorp.

The move makes Post more attractive for potential acquisitions. ConAgra Foods Inc. has made several bids for the cereal maker, including a $4.9 billion offer in May that Ralcorp rebuffed.

From wire reports