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China announced more help Wednesday for its struggling private business sector, unveiling a $2.5 billion fund to finance new small businesses and promising tax breaks and more lending for entrepreneurs.

The Cabinet announcement was one of the first concrete measures announced by the government following repeated pledges to help entrepreneurs who have been squeezed by a slump in U.S. and European demand and curbs on bank lending.

Entrepreneurs generate most of China’s new jobs and wealth, but thousands have been driven out of business. The survivors have slashed payrolls, raising concern among China’s communist leaders about possible unrest.

A Cabinet statement issued after a meeting led by Premier Wen Jiabao, the country’s top economic official, said small companies were essential to helping China keep growth fast and stable despite the global downturn.

The government will create a 15 billion yuan ($2.5 billion) fund “primarily to support the start-up of small and micro-enterprises,” it said.

It gave no details but also promised a cut in taxes and fees and said small businesses will be guaranteed a portion of government purchases of goods and services.

Beijing ordered the state-owned banking industry to lend freely to help China’s economy rebound from the 2008 global crisis. But it clamped down on credit to preventing overheating after annual economic growth soared above 10 percent in 2010.

Economic growth fell to a 2 1/2-year low of 8.9 percent in the final quarter of 2011.

Two surveys released Wednesday gave mixed signals on manufacturing activity in January but both showed it largely unchanged.

The state-affiliated China Federation of Logistics and Purchasing said its purchasing managers index rose 0.2 points to 50.5 from December’s 50.3 on a 100-point scale on which numbers above 50 indicate growth.

HSBC Corp. said its HSBC China Manufacturing PMI was little changed at 48.8 from December’s 48.7, suggesting a “moderate deterioration.”

The credit clampdown battered entrepreneurs as banks channeled their limited lending to politically favored government companies. Entrepreneurs turned to high-interest underground lenders. Thousands went bankrupt, leaving employees and suppliers unpaid.

The government responded in October by ordering banks to step up lending to small businesses, though it is unclear whether credit has increased.

Wednesday’s statement promised to create more small-scale financial institutions to serve entrepreneurs and rural companies.

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Wendy’s Co. says its adjusted earnings fell 29.5 percent in the fourth quarter, while its revenue rose 5.6 percent,

The hamburger chain said Monday its income from continuing operations was $4.3 million in the period ended Jan. 1. That was down from $6.1 million a year ago.

The adjusted number stripped out one-time charges like costs related to selling Arby’s and writing down the value of some assets. The company didn’t report what net income would be if those charges were factored in.

Earnings were 4 cents per share, in line with the predictions of analysts polled by FactSet. After adjusting for the one-time charges, earnings were 1 cent per share.

Wendy’s says revenue rose to $615 million, beating the $613 million predicted by analysts polled by FactSet. More visitors and higher prices helped.

Shares fell 2 percent in early trading to $5.10.

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Jan. 29 (Bloomberg) –Indonesia may sustain its economic growth, Trade Minister Gita Wirjawan said, as

Kia has announced the recall of nearly 146,000 vehicles with faulty airbag systems.

The models affected are the 2006-2008 Kia Optima and the 2007-2008 Kia Rondo. Due to a flawed spring system that may become damaged over time, the driver’s side airbag in these cars may not deploy properly in the event of a crash, the National Highway Traffic Safety Administration said in a recall alert.

Kia reported the problem last week, and the recall is expected to begin in March, NHTSA said. Customers affected can have the problem fixed at dealerships free of charge.

Kia said in a statement that it was not aware of any injuries or airbag non-deployments associated with the problem to date payday loans. The issue was discovered "as a result of the regular monitoring of field data to ensure product quality," the company said.

For more information, car owners can contact NHTSA’s vehicle safety hotline at 1-888-327-4236 or visit www.safecar.gov. They can also call Kia’s Consumer Assistance Center at 1-800-333-4542 

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Funds that give everyone from retirees to money managers easier access to junk bonds are fueling the biggest price swings in more than two years after their buying power surged tenfold.

Exchange-traded funds that track high-yield bond indexes exceed $22 billion, up from about $2 billion three years ago.

While that’s just 2 percent of the $1 trillion in U.S. corporate speculative-grade debt outstanding, ETFs are among the biggest holders of benchmark securities, including those of casino owner Caesars Entertainment Corp. and HCA Inc.

ETFs, which drew scrutiny last year as riskier versions emerged, are adding to volatility because of rules that promote trading. A measure of price swings for junk bonds was seven times higher in November than May, making it harder for the neediest borrowers to raise capital guaranteed high risk personal loans.

Their influence in the market for high-yield, high-risk debt is becoming similar to what ETFs, which have grown to $1.5 trillion from $109 billion in 10 years, have done in other assets.

While cash has poured into ETFs, they haven’t outperformed. Speculative-grade bonds on average returned 40 percent since April 2007, compared with 36.3 percent for investment-grade debt and 37.3 percent for U.S. Treasuries, according to Bank of America Merrill Lynch index data.

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Sales (RSTAMOM) at U.S. retailers rose less than projected in December, confirming forecasts for a slowdown in consumer spending at the start of 2012.

The 0.1 percent gain in purchases last month followed a 0.4 percent increase in November, according to figures from the Commerce Department released today in Washington. The median estimate in a Bloomberg News survey called for a 0.3 percent rise. Another report showed more Americans than projected filed claims for jobless benefits last week.

Merchants like Williams-Sonoma Inc. (WSM) cut prices during the most important shopping season of the year amid concern stagnant wages and lower property values would hold customers back. The slowdown in demand means households are looking to rebuild savings after spending jumped early in the fourth quarter, showing further job gains are needed to fuel purchases.

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An independent political committee supportive of Newt Gingrich is planning to release a film critical of Mitt Romney’s tenure at a private-equity firm, just days after a Las Vegas billionaire contributed $5 million to the group to bolster the former House speaker’s White House run.

The Gingrich-leaning Winning Our Future PAC said Sunday that the 28-minute video _ which assails Romney for “reaping massive awards” while head of Bain Capital _ will be posted online soon and could show up on TV ahead of this month’s primary elections.

Meanwhile, a person familiar with the development said Sheldon Adelson, a casino mogul and longtime donor to Republican candidates, made the contribution Friday to Winning Our Future, which is run by Gingrich allies. The person, who was not authorized to discuss the matter publicly, said Adelson is expected to contribute to groups backing the Republican nominee, be it Gingrich or one of his rivals.

Both the film and the large contribution highlight the growing role that new “super” political action committees are playing this election. Just weeks ago, a Romney-leaning super PAC called Restore Our Future hammered Gingrich with $3 million in negative ads that largely contributed to his eroding support before the Iowa caucuses. Gingrich finished in fourth place.

Now, the tables have turned: Winning Our Future’s case marks the first time Gingrich and his allies have targeted Romney’s time at Bain. They have said Romney’s record is fair game, but up until now have restricted attacks to his time in government.

The film, called “When Mitt Romney Came To Town,” assails Romney for “reaping massive awards” for himself and his investors. Bain has been credited with turning around dozens of companies, including well-known brands like Domino’s Pizza, but its record has been criticized _ notably by the Democratic National Committee _ for slashing jobs in the process.

Rick Tyler, a former Gingrich aide who is now working for Winning Our Future, said the full video would be posted online “soon.” Some segments could be used in shorter TV ads, he said, although there were no immediate plans to run the full piece on television.

Super PACs have sprouted up from a series of federal court rulings, including the Supreme Court’s Citizens United case in 2010 that stripped away restrictions on corporate and union spending in elections. The groups can’t coordinate directly with campaigns but many of them active in this election are staffed by longtime supporters of the candidates.

While some super PACs have to disclose their contributors’ names later this month, many will never be known. Some super PACs have established nonprofit arms that are permitted to shield contributors’ identities as long as they spend no more than 50 percent of their money on electoral politics low fee payday loans. Crossroads, the giant conservative outfit tied to former George W. Bush political adviser Karl Rove, operates both a super PAC, Crossroads GPS, and a nonprofit, American Crossroads.

Crossroads GPS and other Republican-leaning super PACs played a significant role in the 2010 midterm elections, helping deliver the House to the GOP and boost the number of Republicans in the Senate. The 2012 contest is the first to test the influence of such groups in presidential politics.

But no candidate has seen his fortunes affected by the emergence of super PACs more than Gingrich.

Riding high in polls just a month ago, he became the target of a $3 million advertising barrage sponsored by Restore Our Future, a super PAC supporting Mitt Romney run by several of the former Massachusetts governor’s allies. The ads, which pounded Gingrich for his ties to federal housing giant Freddie Mac and his reversal on issues such as climate change, sent his political fortunes plunging in Iowa.

Romney and Gingrich tangled over the role of super PACs in a nationally televised debate Sunday. Romney said he had not seen Restore Our Future’s ads but defended their content.

“Governor, I wish you would calmly and directly state it is your former staff running the PAC,” Gingrich said to Romney, warning his own allies would be on the air soon.

Gingrich has pledged to carry on and is hoping to resuscitate his campaign in South Carolina, which holds its primary Jan. 21. With Romney heavily favored to win the New Hampshire primary Tuesday, his rivals are looking to slow his momentum when the contest moves to the South.

Several super PACs have already played a role in the Republican campaign. They include Make Us Great Again, a super PAC backing Texas Gov. Rick Perry; Our Destiny, supporting former Utah Gov. Jon Huntsman; and the Red White and Blue Fund, which helped revive Santorum’s campaign in Iowa and is running ads in South Carolina.

Priorities USA Action, a super PAC backing President Barack Obama’s re-election campaign, has spent modestly during the Republican nominating contest and is expected to step up its role in the general election.

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Gillum reported from Washington. Associated Press Writer Shannon McCaffrey in Atlanta contributed to this report.

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Federal Reserve Bank of St. Louis President James Bullard said monetary policy has influenced inflation and price expectations, even with the benchmark interest rate near zero since December 2008.

Stocks are opening slightly lower as worries over the European debt crisis persist, overshadowing a strong auction of Italian government debt.

The European Central Bank said the continent’s banks parked a record $590.72 billion overnight at the bank, reflecting distrust in the European banking system.

Italy held two successful bond auctions Wednesday at a substantially lower cost than what it paid in similar auctions last month payday loan lenders. The sales raised hopes that the country would be able to roll over its enormous national debt with new bonds.

The Dow Jones industrial average is down 20 points at 12,272 in early trading. The S&P 500 is down 3 at 1,262. The Nasdaq is down 6 at 2,619.

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