Trade tensions rise between U.S., China

WASHINGTON -- Trade tensions between the U.S. and China escalated Wednesday when the Bush administration said it will set new limits on the amount of clothing that China can ship to America. It was the second time in five days that Washington announced such quotas, acting on complaints that a surge of Chinese apparel was hurting U.S. companies. American retailers are concerned the quotas will raise prices of these goods for U.S. consumers.

United union reports progress in contract talks

CHICAGO -- The union representing 20,000 ramp workers and customer-service agents at United Airlines reported "significant progress" Wednesday in negotiations aimed at averting a contract deadlock and threatened strike. The International Association of Machinists and Aerospace Workers gave the upbeat report as it continued marathon talks with UAL Corp.'s United to work out a deal before this afternoon, when a bankruptcy court trial is due to resume on United's proposal to impose lower pay and benefits.

Hurricanes cause Allstate to drop some Fla. policies

TALLAHASSEE, Fla. -- Allstate will stop writing commercial insurance policies in Florida and won't renew 95,000 residential homeowner policies, a decision being made because of the four hurricanes that slammed Florida last year, the company announced Wednesday. Allstate Floridian, an independent branch of Northbrook, Ill.-based Allstate Corp., will keep about 663,000 homeowner policies in the state, and Universal Insurance Co. of North America has agreed to write policies for any of the Allstate customers who are not renewed, according to an Allstate release. The company paid about $2 billion in claims after hurricanes battered Florida.

Panera shares surge thanks to new items

ST. LOUIS -- Shares of Panera Bread Co. jumped Wednesday as the suburban St. Louis-based sandwich chain raised full-year earnings estimates, benefiting from a new antibiotic-free chicken, a forthcoming breakfast egg souffle and its food-delivery service. The stock rose $5.85, or 11 percent, to close at $59.43 on the Nasdaq Stock Market.