AP Executive Morning Briefing

Wed Jan 16, 2008 6:53 AM EST

business, associated-press, financial, summary

The top business news from The Associated Press for the morning of Thursday, Jan. 17, 2008:

Bernanke Seems Open to Stimulus Package

WASHINGTON (AP) — Faced with a deteriorating economy, Federal Reserve Chairman Ben Bernanke has indicated he is open to congressional and White House efforts to develop a rescue package to avert a recession. The fragile state of the economy has gripped Wall Street and Main Street and is a rising concern among voters. The situation has galvanized politicians — including those vying to be the next president — and poses the biggest test to Bernanke, who took over the Fed nearly two years ago.

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FDA: Cold Medicines Too Risky for Tots

WASHINGTON (AP) — Parents may be left with only love and lots of liquid to give their sniffling babies and toddlers now that the government is declaring over-the-counter cough and cold medicines too risky for tots. The Food and Drug Administration was issuing that warning Thursday to parents of children under 2.

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Companies Launch Gadget Buyback Services

NEW YORK (AP) — We think a lot about getting new gadgets, but not so much about getting rid of old ones. The result: old cell phones, defunct laser printers and Pentium III computers gathering dust. A couple companies want to help us clear out those old gadgets, while feeding our upgrade habit, helping the environment and making a buck for themselves.

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Oil Profits Could Spark Some Backlash

HOUSTON (AP) — Historic oil prices and $3-a-gallon gasoline have been contributing to fears of a recession, but they've yet to cause the hue and cry that some might expect. Americans may simply be growing more accustomed to high fuel costs, analysts say. All that may change beginning Friday, when oilfield services giant Schlumberger Ltd. kicks off earnings season for the oil sector. Companies may not post record profits, but certainly may report big enough earnings to raise some eyebrows.

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Tropicana Rehires President As Adviser

ATLANTIC CITY, N.J. (AP) — Two months ago, she was suing the Tropicana Casino and Resort, claiming it stiffed her on a nearly half-million dollar severance package when new owners took over and replaced her. Now, for $225 an hour, the former president of the casino will help get it ready to be sold.

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Oregon Mulls More Water for Farmers

SALEM, Ore. (AP) — It was touted by backers as the "Oasis Project," a plan to draw an additional 500,000 acre-feet of water from the Columbia River to help farmers in eastern Oregon increase crop production and revitalize the region's economy. But the plan faded like a desert mirage in the 2007 Legislature in the face of complaints by environmentalists and veto threats from Gov. Ted Kulongoski. Critics said allowing more water withdrawals from the river in summer months would imperil native steelhead and salmon.

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Oil Near $91 After Overnight Drop

SINGAPORE (AP) — Oil prices rose Thursday after declining sharply in the previous session on an unexpected increase in U.S. crude inventories last week. Crude oil stockpiles rose 4.3 million barrels last week, the first increase since the week ended Nov. 9, the U.S. Energy Department's Energy Information Administration said in its weekly inventory report Wednesday. Analysts surveyed by Dow Jones Newswires had on average expected a decline of 300,000 barrels.

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Gas, Food Spur Inflation Jump in 2007

WASHINGTON (AP) — Consumer prices rose in 2007 at the fastest pace in 17 years as motorists paid a lot more for gasoline and grocery shoppers paid higher food bills. However, falling prices for clothing and new cars offset some of those gains. The Labor Department reported that consumer prices rose by 4.1 percent for all of 2007, up sharply from a 2.5 percent increase in 2006. Both energy and food prices jumped by the largest amount since 1990.

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Americans Pay for Housing Boom's Excess

NEW YORK (AP) — The bill for America's excessive borrowing during the housing boom has arrived, and more people are having trouble paying it. JPMorgan Chase & Co. and Wells Fargo & Co., two of the nation's largest banks, on Wednesday joined a growing chorus warning that the subprime mortgage mess is just the start of a sweeping lending crisis. And some fear that consumers falling behind on all kinds of loan payments could tip the economy's scale toward recession.

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Airbus, Boeing Swamped by Orders

TOULOUSE, France (AP) — The problem for Airbus and Boeing isn't too few customers — it's getting planes off their production lines fast enough to meet demand. Together, the rivals won a record 2,754 orders last year. Airbus said Wednesday that its backlog will increase this year — even as new orders slow — and its passenger jets are mostly sold out through 2011 or even later.

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Gold Prices

LONDON (AP) — Gold bullion opened Thursday at a bid price of $884.05 a troy ounce, up from $876.10 late Wednesday.

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Japan Markets

TOKYO (AP) — Japanese stocks snapped a four-session losing streak Thursday, rebounding on broad bargain hunting in recent decliners such as real estate and construction shares. The benchmark Nikkei 225 stock index rose 278.94 points, or 2.07 percent, to close at 13,783.45. The index had shed 7.5 percent of its value the preceding four sessions, including a 3.4-percent drop Wednesday.

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Dollar-Yen

TOKYO (AP) — The dollar held onto a recovery from a two-and-a-half year low versus the yen Thursday in Asia, but it remained weak amid worries about the health of the U.S. economy. The dollar was trading at 107.32 yen at 4:50 p.m. Thursday, down from 107.60 yen late Wednesday in New York.

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