U.S. economy grew 1.7% in second quarter

WASHINGTON » The U.S. economy grew at a tepid 1.7 percent annual rate in the April-June quarter, suggesting growth will stay weak in the second half of the year.

Slightly stronger consumer spending and greater exports were the main reasons the Commerce Department reported Wednesday that growth was better than its initial estimate of 1.5 percent. Still, growth has slowed from the 2 percent annual rate in the January-March quarter and the 4.1 percent rate in the fourth quarter of 2011.

Most economists believe the economy will keep growing, but at a subpar rate of about 2 percent.

Samsung unveils Galaxy Note II phone

NEW YORK » Fresh off a legal battle with Apple, Samsung announced Wednesday a new version of the Galaxy Note, an offbeat, oversized smartphone that’s become a surprise hit.

Samsung, the world’s largest maker of phones, revealed the Galaxy Note II at a trade show in Berlin. The 5.5-inch screen is narrower but longer than on the first version. The processor is faster, and the software has been further adapted for the included stylus — the phone’s signature feature.

While Apple has been releasing a new smartphone model each year, Samsung makes several to target different types of customers. That includes low-end phones for price-conscious customers. As a result, Samsung has been selling more smartphones than Apple this year.

The Note runs on Google’s Android operating system but isn’t among the phones that Apple is asking a judge to ban from the United States, after a jury in California ruled last week that some of Samsung’s Android phones violated Apple patents. The jury awarded Apple $1 billion in damages in a high-profile case that could force Samsung and other Android phone makers to rethink their designs.

The company said the new phone will go on sale in Europe and Asia in October. It did not say when it would launch with a U.S. carrier.

French offer to pay salaries of young hires

PARIS » The French government wants companies to hire young people so badly that it’s offering to pick up the tab. President Francois Hollande told his Cabinet Wednesday that he wants to wage a war on unemployment and unveiled a plan for the government to pay most of the salaries of tens of thousands of young people hired next year.

Unemployment in France is 10 percent, but nearly 23 percent for those under age 25. Under France’s new plan, companies that hire a person between 16 and 25 for at least a year will only have to pay as little as 25 percent of the salary.

ON THE MOVE

Hawaiian Building Maintenance has announced the following promotions: 

>> Jim Birchfield to vice president of technical engineering services from executive director of engineering services. He has more than 30 years of management experience, including serving at HBM as a director of engineering operations.

>> Jodi Okada to director of internal operations from administrative manager. She joined HBM in 2002 as a payroll/accounts receivable administrator.

The Makena Beach & Golf Resort has announced the appointment of Leo Mallari Jr. as director of food and beverage. He has 23 years of experience in hospitality management, including director of restaurants at Ritz Carlton Kapalua, Maui.

Certified Hawaii, an Associa company, has announced Pauli Wong as vice president of reserve and account executive division. She was previously a director of Hawaiiana, where she specialized in high-rise condominiums.

SHIFTING GEARS

Lee returns to Servco Lexus

Charles Lee has been named group vice president and general manager of Servco Lexus by Servco Pacific Inc.

He is responsible for day-to-day operations of both Servco Lexus Honolulu as well as Servco Lexus Maui.

Raised in Northern California, Lee served most recently as dealer operator and general manager for a large volume dealership in California. He previously worked for Servco Lexus as vice president and director of variable operations.

Mercedes stars at Lunch Bunch

Gull wings will make a rare Hawaii appearance at the Waikiki Yacht Club Tuesday during the monthly Auto Lunch Bunch gathering. The wings will be attached, not to a bird, but to a Mercedes SLS AMG Coupe, in the form of gull-wing doors.

While Mercedes Benz of Honolulu is supplying the SLS, Pat Parsons will bring a vintage 1971 Mercedes Benz 280 SE for the Kars at the Kurb display.

The lunchtime video will include highlights of the Pebble Beach Concours d’Elegance and the Tour Best of Show for 2012. Guests also will hear from Russell Elwell, KITV local sales manager, about what’s new at the ABC network affiliate.

Reservations can be made via billmaloney15@aol.com or with Ed Kemper at 225-2965. The $14.25 cash-only cost includes meal, drink and tip.