AP Executive Morning Briefing

The top business news from The Associated Press for the morning of Tuesday, May 6, 2008:

Oil hits record $120.93 on fear of tight supply

VIENNA, Austria (AP) — Oil futures rose to an all-time high near $121 a barrel Tuesday with new concerns about a threat to supply and a weaker dollar. The surge in oil prices was also fueled by hopes that the U.S. economy will be spared a sharp downturn after the release of data Monday showing an unexpected expansion in the U.S. service sector in April, analysts said.

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Indonesia considers quitting OPEC

JAKARTA, Indonesia (AP) — President Susilo Bambang Yudhoyono said Tuesday that Indonesia was considering quitting the Organization of Petroleum Exporting Countries because it was no longer a net oil exporter. "Our wells are drying," he said in the nationally televised speech, adding that the country needed to concentrate on increasing domestic production, which has dropped to less than a million barrels a day even as consumption rises.

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Swiss bank UBS reports 1Q net loss of $11 billion

ZURICH, Switzerland (AP) — Swiss bank UBS AG announced Tuesday it would cut 5,500 jobs and reported a net loss of 11.5 billion Swiss francs ($10.97 billion) for the first quarter of this year. This compares with a net profit of 3 billion francs in the same period last year.

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Stocks end lower after Microsoft pulls Yahoo bid

NEW YORK (AP) — Wall Street pulled back Monday following Microsoft Corp.'s decision to withdraw its bid for Yahoo Inc. and as oil prices rose to a new record over $120 a barrel. Microsoft had offered $47.5 billion to buy Yahoo Inc., but scrapped the bid late Saturday after the software maker and the Internet provider could not agree on a sale price. The failed deal came as a disappointment to Wall Street, as merger-and-acquisition activity tends to boost shareholder value, and also signals to the broader market that corporate America is optimistic about the future.

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Federal Reserve reports tighter bank lending standards

WASHINGTON (AP) — The Federal Reserve reported Monday that more banks are tightening lending standards on home mortgages, other types of consumer loans and business loans in response to a spreading credit crisis. The Fed said the percentage of banks reporting tighter lending standards was near historic highs for nearly all loan categories.

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Merck to cut 1,200 sales jobs following regulatory setback

TRENTON, N.J. (AP) — Merck & Co. said Monday it is eliminating 1,200 U.S. sales jobs, a move that comes a week after federal regulators' surprise rejection of an experimental cholesterol drug heavily touted by the pharmaceutical company. The cuts come on top of the elimination of about 8,100 positions under the sweeping restructuring plan announced in December 2005, Merck's so-called Plan to Win.

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Tropicana Entertainment files for Chapter 11 protection

ATLANTIC CITY, N.J. (AP) — The owner of Tropicana casinos in Atlantic City and Las Vegas has filed for Chapter 11 bankruptcy protection, nearly five months after New Jersey regulators stripped the Tropicana Casino and Resort of its license. Tropicana Entertainment LLC said Monday it plans to continue operating its remaining properties throughout the country, including the famed Tropicana Casino and Resort on the Las Vegas strip, and will keep current staffing levels.

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Yahoo stock slips as buyout talks end; Google may be winner

SAN FRANCISCO (AP) — Yahoo Inc.'s stock took a beating Monday after Microsoft Corp. withdrew its $47.5 billion takeover bid, but the punishment wasn't as severe as many analysts anticipated because investors suspect the rivals eventually will renew their mating dance. Although Microsoft has publicly indicated it will focus on measures besides buying Yahoo in its effort to make its Internet division profitable, several analysts predicted the software maker will revive its offer in the summer or fall if Yahoo can't snap out of a two-year funk that exposed it to an unwanted takeover in the first place.

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Wal-Mart expands low-price drug program; Target follows

LITTLE ROCK, Ark. (AP) — Wal-Mart Stores Inc., the world's largest retailer, announced Monday it would expand its discounted prescription drug program to offer 90-day supplies for $10 and add several women's medications at a discount. It also said it would lower the price of more than 1,000 over-the-counter drugs. Target Corp. said late Monday it would match the major elements of Wal-Mart's program.

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Target sells stake in credit card receivables to JPMorgan

MINNEAPOLIS (AP) — Target Corp. said Monday it will sell nearly half its credit-card receivables to JPMorgan Chase & Co. for $3.6 billion, a move the retailer had long resisted. Target will still run its credit card business, which includes a Target Visa card and a store card, and said customers won't notice any change. In effect, Target gets the cash and JPMorgan gets the right to a chunk of the future profits from the credit card business.

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Gold Prices

LONDON (AP) — Gold bullion opened Tuesday at a bid price of $871.90 a troy ounce, down from $874.00 late Monday in New York.

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Japan Markets

TOKYO (AP) — Japanese financial markets were closed Tuesday due to a national holiday. The markets will reopen Wednesday.

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