Improved economy: The April-to-June period expanded at a 3.3 percent clip, quite higher than the initial estimate of 1.9 percent – and, on the surface anyway, not reflective of economy in recession. Much of the adjustment in the gross domestic product was due to exports growing at a better-than-expected pace (reporting on exports tends to lag other categories). But it's doubtful that exports can keep going at that pace, especially since Europe and even parts of Asia are facing their own economic doldrums. Meanwhile, consumer spending, which amounts to more than two-thirds of the nation’s economic activity, grew at a still-sluggish 1.7 percent. (NYT)

Markets react: The Dow is up more than 100 points on the GDP revision, as well as a drop in jobless claims. Oil is up on growing concerns that a new hurricane might disrupt production in the Gulf next week.

Toyota cuts forecast: The Japanese automaker warned that higher fuel costs and a slowdown in the U.S. and Europe will probably hold back sales at least through 2009. The company now expects to sell 700,000 fewer cars and trucks than earlier predicted. From the NYT:

Toyota’s outlook has been hampered by the 20 percent of its lineup in the United States that is made up of big sport utility vehicles and pickup trucks. The company said last month that it had misjudged the speed of the swing in consumer taste toward smaller cars. The announcement Thursday was an acknowledgment of what many analysts had expected.

Pay as you drive: Insurance Commissioner Steve Poizner is proposing that folks who drive fewer miles pay less on their car insurance. Two out of three households in the state could save an average of $276 per vehicle. The pay-as-you-drive system would provide an incentive to limit car trips and cut emissions. Insurance companies seem to like the idea. (LAT)

Port competition: Bidding begins today on the infrastructure work for a planned $4 billion seaport in Northern Baja. The idea, which has been tossed around for years, calls for a massive port about 150 miles south of Tijuana that would include rail lines to ferry goods to the U.S. The complex is supposed to open in 2014 and eventually it could bring major competition to the ports of L.A. and Long Beach. (LAT)

Amgen eliminates discounts: The Thousand Oaks-based company will no longer offer rebates to oncology clinics for their use of the anemia drug Aranesp. It also will stop offering discounts on two other drugs, Neulasta and Neupogen, based on a doctor’s purchase of Aranesp. Critics have said that the discounts and rebates provide an incentive for doctors to use more of the drug because it provides a higher profit. From the NYT:

Dr. Peter Eisenberg, an oncologist in Marin County, Calif., said he welcomed the end of bundling. His practice, California Cancer Care, had been buying the drugs separately because it refused to accept Amgen’s terms. “Our practice probably gave up a million bucks over two years, probably more, in rebates by not signing a contract,” he said.

Quiksilver out of ski biz: The Huntington Beach company sold its Rossignol Group division to Chartreuse & Mont Blanc, a French ski and snowboard company, for about $150 million. This has not been a good experience for Quiksilver - the price tag is less than half what the company paid for Rossignol three years ago. (WWD, LAT)

Production days are down: With the studios having front-loaded much of their shooting to prepare for a possible SAG strike, July and August were slow. FilmL.A. reports that the number of feature permits released from July 1 to Tuesday fell 8 percent, and the number of feature production days for July and August is off 19 percent. Quite a bit of independent production has continued because of SAG waivers. TV has been mostly unaffected by the uncertainty over a SAG contract. (Variety)