AP Executive Morning Briefing

The top business news from The Associated Press for the morning of Tuesday, December 19, 2006:

Oracle 2Q Earnings Climb 21 Percent

SAN FRANCISCO (AP) _ Oracle Corp.'s strongest earnings streak since the dot-com boom may be losing its vigor. At least that's how it appeared to investors late Monday after the business software maker reported fiscal second-quarter earnings that merely matched analyst estimates _ a letdown that overshadowed the latest gains that the business software maker has reaped from a two-year shopping spree that has bolstered its product line.

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NYSE-Euronext Wins Crucial Support

PARIS (AP) _ Euronext shareholders were set to vote Tuesday on the European stock exchange operator's $14 billion (10.7 billion euros) tie-up with the New York Stock Exchange, a combination that would create the first trans-Atlantic equities market. In the days preceding the meeting in Amsterdam, NYSE Group Inc. and Euronext NV have secured the support of some of the deal's former opponents, including the Dutch government and Paris Europlace, an influential French business group.

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T.M.X. Elmo Was Developed in Secrecy

EAST AURORA, N.Y. (AP) _ "Ah, ah, ah. No peeking!" teases T.M.X. Elmo's voice when the lid to his box is lifted. It's no wonder. That's what the toy's creators were saying for nearly two years before it became one of this year's hottest holiday sellers. T.M.X. Elmo was developed under such secrecy that not even the sales force at manufacturer Fisher-Price Inc. knew exactly what they were selling before the toy debuted on national television Sept. 19.

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Honda Sees Global Sales Hitting Records

TOKYO (AP) _ Honda Motor Co. said Tuesday it expects worldwide sales to rise 5 percent to an all-time high of 3.55 million vehicles this year amid booming overseas demand. Honda _ which makes motorbikes, robots and light aircraft, as well as the Odyssey minivan and Civic compact _ expects U.S. sales to rise 3 percent to 1.51 million vehicles in 2006, marking a sales record for the 10th consecutive year.

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EBay to Open Chinese Web Site in Shift

SAN FRANCISCO (AP) _ EBay Inc. is expected to announce plans Tuesday to open a new Chinese Web site as part of a joint-venture with a Beijing-based Internet company, signaling a strategic shift in the online auction company's Chinese operations. The new site _ operated by online portal and wireless operator Tom Online Inc. _ will focus on the domestic Chinese market, according to a person familiar with the deal who requested anonymity because it hadn't been formally announced.

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Dow Ends Down 4 After Barrage of Buyouts

NEW YORK (AP) _ Wall Street fell for the first time in four sessions on Monday as concerns about the technology and energy sectors overshadowed some $81 billion in takeover activity. Stocks spent most of the day in positive territory as investment bankers squeezed in more deals before year end, and helped keep a floor under share prices for most of the day.

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Harrah's Board Said to OK $16.7B Offer

LAS VEGAS (AP) _ Harrah's Entertainment Inc., the world's largest casino company, has agreed to a $16.7 billion offer from two private equity groups, two people with knowledge of the negotiations said. The agreement with Apollo Management Group and Texas Pacific Group came late last week but lawyers for both sides have been working out the details, said the sources, who spoke on condition of anonymity because of the sensitivity of the talks.

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U.S. Charges Ex-Fannie Mae Chief Raines

WASHINGTON (AP) _ The government on Monday filed civil charges against former Fannie Mae chief Franklin Raines and two other top executives, accusing them of misconduct costing shareholders billions of dollars. The Office of Federal Housing Enterprise Oversight announced that it is seeking fines and the return of millions in bonus money. It filed 101 charges against Raines, former chief financial officer Timothy Howard and former controller Leanne Spencer.

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FCC Commissioner Won't Vote on AT&T Deal

WASHINGTON (AP) _ AT&T Inc.'s proposed buyout of BellSouth was thrown into doubt Monday when Robert McDowell, a member of the Federal Communications Commission and a former telecommunications industry lobbyist, said he will not be voting on the deal. McDowell's personal disqualification means the nation's largest telecommunications merger is stuck at a presumed 2-2 deadlock. He said he hoped his fellow commissioners "will come back to the negotiating table in good faith to offer meaningful concessions."

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Biomet Agrees to $10.9 Billion Buyout

INDIANAPOLIS (AP) _ A group of private investors that could include a founder of Biomet Inc. has offered $10.9 billion in cash for the Warsaw, Ind.-based orthopedics maker as they seek to capitalize on baby boomers who want to turn back the clock. The consortium offered $44 per share, 27 percent more than Biomet's closing price on April 3, the last trading day before the merger talk began. The offer is $1 per-share higher than what one analyst said would be justified last week.

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Gold Prices

HONG KONG (AP) _ Gold closed at $616.90 an ounce on Tuesday in Hong Kong, down $1.40 an ounce from Monday's close of $618.30.

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Japan Markets

TOKYO (AP) _ Japanese stocks fell Tuesday, dragged down by technology and communication issues as the market took a breather after a six-session rally.

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Dollar-Yen

TOKYO (AP) _ The dollar fell against the yen in Asia Tuesday as players sold the U.S. currency to take profits after the Bank of Japan decided to keep interest rates on hold.

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