AP Executive Morning Briefing

The top business news from The Associated Press for the morning of Thursday, Oct. 25, 2007:

Microsoft Deal Values Facebook at $15B

SAN FRANCISCO (AP) — It's hard to determine what's more surprising about Microsoft Corp.'s investment in Facebook Inc. — the appraisal that valued a 3 1/2-year-old Internet hangout at $15 billion or the rare snub of online search leader Google Inc. The $240 million price Microsoft paid for a 1.6 percent stake in Facebook demonstrates just how badly the world's largest software maker wanted to deepen its relationship with a startup that doesn't even have $200 million in annual revenue.

___

Intel Opening New Chip Plant in Arizona

SAN FRANCISCO (AP) — In the latest display of its manufacturing might, Intel Corp. is opening a new $3 billion factory in Arizona, widening its lead over rival Advanced Micro Devices Inc. in the industry's switch to a new chip-making technique. The new facility in Chandler, Ariz., will be Intel's first plant dedicated to churning out microprocessors — the brains of personal computers and servers — whose parts measure an average of just 45 nanometers, or 45 billionths of a meter.

___

Chrysler Contract Closer to Ratification

STERLING HEIGHTS, Mich. (AP) — The United Auto Workers and Chrysler LLC got a big boost from some Detroit-area plants that voted in favor of a new labor contract, but the road to ratification is still a bumpy one with thousands more workers scheduled to cast ballots in the next few days. Much is now riding on votes set for Friday and Saturday in Belvidere, Ill., where 3,815 Chrysler hourly workers are employed at an assembly plant and a metal stamping plant. Belvidere is the last major complex where workers will be voting.

___

Bank of America to Eliminate 3,000 Jobs

CHARLOTTE, N.C. (AP) — After a tough third quarter, Bank of America Corp. has become the latest bank to slash jobs due to poor results brought on by the unrest in global credit markets. The nation's second-largest bank said Wednesday that it is cutting 3,000 positions in its investment banking unit, a day after crosstown rival Wachovia Corp. starting eliminating several hundred positions for the same reasons.

___

Chinese Economy Closes in on Germany's

BEIJING (AP) — China's supercharged economy grew by a stunning 11.5 percent in the third quarter, slowing slightly amid authorities' efforts to avert overheating but staying on track to overtake Germany as the world's third-largest within weeks, according to data reported Thursday. Growth beat economists' forecasts but was below the 11.9 percent rate the previous quarter. The government said its repeated rate hikes and other controls were finally taking effect.

___

Flat TVs, Cameras Boost Sony's Profit

TOKYO (AP) — Sony reported Thursday a dramatic improvement in profit for the July-September quarter, at more than 40 times earnings in the same quarter a year ago, as healthy sales of flat-panel TVs and digital cameras offset losses in video games. Sony Corp. marked 73.72 billion yen ($646.7 million) in group net profit for the most recent quarter, up from 1.68 billion yen the same period the previous year.

___

Buffett Sees Subprime Woes Lingering

DAEGU, South Korea (AP) — American billionaire investor Warren Buffett said Thursday that problems in the U.S. subprime mortgage market will likely weigh on consumers for up to two years, but that the U.S. economy will weather the storm. The subprime problem "is having an impact," Buffett said on his first visit to South Korea. "It will have more of an impact."

___

VMware's Strong 3Q Impresses Wall Street

SAN FRANCISCO (AP) — Geopolitical instability, a looming economic slowdown, competition from startups and a rivalry with the world's largest software company haven't dampened Wall Street's enthusiasm for newly public VMware Inc. The Palo Alto-based software company, which went public in August, already is one of the five top-valued software companies worldwide.

___

Honda Quarterly Profit Rises 63 Percent

TOKYO (AP) — Honda Motor Co. said Thursday its profit shot up 63 percent in the July-September quarter, mainly riding on solid sales of smaller, fuel-efficient vehicles and cost-cutting efforts. Net income at Japan's No. 2 car maker climbed to 208.5 billion yen ($1.83 billion) for its fiscal second quarter, up from 127.9 billion yen in the same period a year ago.

___

Singapore Airlines A380 Completes Flight

ON BOARD FLIGHT SQ380 (AP) — The world's largest jetliner made aviation history Thursday, completing its first commercial flight from Singapore to Sydney with 455 passengers, some of them ensconced in luxury suites and double beds. With 455 passengers, the Airbus superjumbo lifted off safely from Singapore's Changi Airport and landed about seven hours later in Sydney. Also on board Flight SQ380 were a crew of about 30, including four pilots.

___

Gold Prices

LONDON (AP) — Gold bullion opened Thursday at a bid price of $763.40 a troy ounce, up from $756.55 late Wednesday.

___

Japan Markets

TOKYO (AP) — Japanese stocks fell Thursday after financial shares came under pressure from a larger-than-expected loss at the brokerage firm Merrill Lynch due to fallout from the subprime mortgage problems. The Nikkei 225 average sank 74.22 points, or 0.45 percent, to 16,284.17 on the Tokyo Stock Exchange.

___

Dollar-Yen

TOKYO (AP) — The dollar extended its slide against the yen Thursday in Asia as lingering concerns over the fallout from the U.S. subprime mortgage meltdown prompted short-term players to sell the greenback to cut risks. The dollar was trading at 114.28 yen at 4:50 p.m. Thursday, up from 114.12 yen late Wednesday in New York.

___

A service of The Associated Press. Copyright 2007 All rights reserved.

Back To Top

	WellCare Among Big Movers on Wall Street	Associated Press	Wed Oct 24	0
	Nasdaq Profits Surges on Gain From Sale	Associated Press	Wed Oct 24	0
	Wall Street Headed to Lower Open	Associated Press	Tue Oct 23	0
	AP Executive Morning Briefing	Associated Press	Tue Oct 23	0
	Boeing 3Q Profit Up, Warns on Revenue	Associated Press	Wed Oct 24	0