AP Executive Morning Briefing

The top business news from The Associated Press for the morning of Wednesday, July 4, 2007:

Blackstone to Buy Hilton Hotels for $20B

LOS ANGELES (AP) _ Hilton Hotels Corp. has agreed to an all-cash buyout from The Blackstone Group LP in a $20.1 billion deal that would instantly make Blackstone the world's largest hotel owner. The private equity group said it would combine cash from its real estate and corporate private equity funds to buy all outstanding Hilton shares for $47.50 each, a 32 percent premium over Tuesday's closing stock price.

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KKR Files for IPO to Raise $1.25B

NEW YORK (AP) _ KKR & Co. LLP is following in the footsteps of rival buyout firm Blackstone Group with plans for an initial public offering that will allow investors to take a stake in its management partnership. KKR, launched by Henry Kravis and George Roberts in 1976, filed for the offering with the Securities and Exchange Commission on Tuesday, saying it expects to raise as much as $1.25 billion and use the proceeds to grow its business.

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GM, Ford, Chrysler Sales Drop in June

DETROIT (AP) _ Three things were made clear when automakers released their U.S. sales figures for June: The market is down, pickup truck buyers can expect more incentives in the second half of the year, and Japanese automakers continue to make gains. June wound up being a lackluster month for the Detroit Three, which again saw sales declines while Nissan Motor Co., Toyota Motor Corp. and Honda Motor Co. all saw double-digit increases.

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20 Percent of China's Goods Substandard

BEIJING (AP) _ Nearly one-fifth of products made in China for domestic consumption failed quality and safety standards, the government said, while a state-run newspaper on Wednesday stressed the need to raise quality guidelines to meet international levels. China's dismal product safety record _ both within and outside its borders _ has increasingly come to light both in the local and foreign media as goods make their way through global markets. Major buyers such as the United States, Japan, and the European Union have pushed Beijing to improve inspections.

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Oil Prices Decline in Asian Trading

SINGAPORE (AP) _ Oil prices retreated in quiet trading Wednesday after they rose to a new 10-month high in the previous session amid persistent concerns that U.S. refineries are not keeping pace with demand. Light, sweet crude for August delivery dropped 20 cents to $71.21 a barrel in Asian electronic trading on the New York Mercantile Exchange midmorning in Singapore. The contract rose 32 cents to settle at $71.41 a barrel Tuesday, a day before the Independence Day holiday in the U.S.

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Japanese Stocks Rise; Dollar Down

TOKYO (AP) _ Japanese stocks inched higher Wednesday for a fifth straight session, led by real estate shares following a report that U.S. investment fund Cerberus Capital Management was to sell its stake in a Japanese hotel. The Nikkei 225 index added 18.82 points, or 0.10 percent, on the Tokyo Stock Exchange, to 18,178.72 points. The index has now gained 1.79 percent over the last five sessions, including Wednesday's rise.

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Chrysler, Chery Sign Vehicle Export Deal

BEIJING (AP) _ Chrysler Group signed a deal Wednesday with China's biggest automaker, Chery, to produce cars for export to the United States and elsewhere in the first attempt by a U.S. automaker to use China as a manufacturing base for world markets. The first cars will be exported within a year to Latin America or Eastern Europe, and models should reach the United States and Western Europe within 2 1/2 years, said Chrysler Chairman and CEO Tom LaSorda.

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Honda Upgrades Car Navigation System

TOKYO (AP) _ Honda's car navigation system already maps the quickest route to a destination, avoiding traffic jams. Now, drivers will get information about earthquakes and warnings of heavy rainfall ahead on roads. Honda Motor Co.'s service, shown to reporters Wednesday, will be offered starting with the remodeled Fit subcompact going on sale in Japan later this year. There are no plans so far to offer it overseas, executive Manabu Nishimae said.

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US Seeks Pacific-Wide Free Trade Zone

SYDNEY, Australia (AP) _ The United States plans to use this week's meeting of Asia-Pacific trade ministers in Australia to push for the long-term goal of a Pacific-wide free trade zone that would encompass roughly half of world trade, the top U.S. trade official said Wednesday. But U.S. Trade Representative Susan Schwab said Washington has not given up hope on stalled World Trade Organization talks, and would use the two-day meeting of trade ministers from the 21-member Asia Pacific Economic Cooperation forum to advance those negotiations.

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Factory Orders Dip but Sector Still OK

WASHINGTON (AP) _ America's factories saw demand for their products dip by a smaller-than-expected 0.5 percent in May, suggesting that despite some pockets of weakness the manufacturing revival remains intact. The drop reported by the Commerce Department Tuesday came after new orders for a range of manufactured goods rose by 0.5 percent in April. The decline in May mostly reflected weaker demand for airplanes. Fewer orders for construction equipment, industrial machinery and household appliances also figured prominently into the overall decline _ byproducts of the housing slump.

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Gold Prices

LONDON (AP) _ Gold bullion opened Wednesday at a bid price of $654.20 a troy ounce, up from $652.35 late Tuesday.

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Dollar-Yen

TOKYO (AP) _ The dollar slipped against the yen Wednesday in Asia on news that a major rating agency may upgrade Japanese government securities.

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