AP Executive Morning Briefing

The top business news from The Associated Press for the morning of Wednesday, August 29, 2007:

Asian Markets Tumble After U.S. Sell-Off

TOKYO (AP) _ Asian markets dropped Wednesday following a plunge on Wall Street amid simmering concerns over global credit market turmoil and fears the U.S. Federal Reserve won't do enough to ease a credit crunch. European markets, meanwhile, were mixed in early trade. Asian markets pared losses as the day progressed, with Korean shares recovering nearly completely, suggesting a measure of investor confidence.

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Study: Cruise-Related Spending Up in '06

MIAMI (AP) _ Cruise lines and their passengers spent $17.6 billion in the U.S. in 2006, and New York and Hawaii were among the fastest growing embarkation points for cruise travelers, according to a study released Wednesday. Direct spending related to the cruise industry increased 9 percent in 2006 _ down slightly from 10 percent growth the year before because of a slower rate of capacity growth and a drop in consumer discretionary spending, according to a report from the Cruise Lines International Association.

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Subprime Mortgage Woes Spreading

NEW YORK (AP) _ The subprime mortgage crisis is spreading to a somewhat unexpected place: homes costing more than $500,000. As lending has rapidly gotten more restrictive for borrowers taking out large loans, sales of expensive homes have fallen sharply around the country during what should be one of the busiest seasons for buyers and sellers, mortgage bankers and real estate agents say.

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Crude Oil Edges Upward in Europe

VIENNA, Austria (AP) _ Oil prices edged upward Wednesday in anticipation of a report showing declines in U.S. crude and gasoline supplies. Comments from OPEC that no output increases were needed also supported prices.

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Fed Minutes Send Dow, Nasdaq Freefalling

NEW YORK (AP) _ Volatility returned to Wall Street Tuesday, sending stocks plunging as investors grew more uneasy about the economy and whether the Federal Reserve will take the steps needed to prevent credit market problems from spreading further. The Dow Jones industrials fell 280 points. The stock market found little to assuage concerns in minutes from the Fed's last meeting, released during afternoon trading. The major indexes' losses steepened after investors parsed the minutes for signs of a possible cut in interest rates.

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Minutes: Fed Saw Danger of Credit Crunch

WASHINGTON (AP) _ Federal Reserve policymakers meeting in early August acknowledged that they might have to take action to ease a growing credit crunch, even as they held out hope for "a return to more normal market conditions" without any intervention. A cut in one interest rate came 10 days later, and analysts are expecting a broader rate cut when Chairman Ben Bernanke and his Fed colleagues meet in September.

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Consumer Confidence Down in August

NEW YORK (AP) _ Consumer confidence weakened in August as Americans focused on turbulent financial markets, a decline in home prices and tighter credit standards. The New York-based Conference Board said Tuesday its Consumer Confidence Index, declined to 105.0 from a revised reading of 111.9 in July, which was still a six-year high.

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Medco to Buy PolyMedica for $1.5 Billion

TRENTON, N.J. (AP) _ Medco Health Solutions Inc., the country's largest prescription benefit manager, said Tuesday it will pay $1.5 billion in cash for PolyMedica Corp., long the largest U.S. supplier of diabetes treatment products. Buying PolyMedica, which has nearly 1 million patients and includes the well-known Liberty Healthcare brand, expand's Medco's foothold in a fast-growing drug category worth more than $25 billion a year.

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Whole Foods Completes Deal for Wild Oats

DALLAS (AP) _ Whole Foods Market Inc. said Tuesday it has lined up financing to complete its $565 million purchase of rival organic and natural foods grocer Wild Oats Markets Inc., ending a six-month battle against federal regulators who tried to block the deal on antitrust grounds. The company said it took out a five-year, $700 million loan to fund the deal, which also includes the assumption of $137 million in Wild Oats debt.

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Chrysler Said Looking to Drop Some Units

DETROIT (AP) _ Chrysler LLC is seeking to shed some of its non-automotive businesses as part of its contract talks with the United Auto Workers, a company official familiar with the negotiations said Tuesday. At issue is the future of Chrysler Transport, which trucks parts and supplies to the automaker's plants, and a Mopar parts packaging and warehouse in Center Line. The official spoke on condition of anonymity because the negotiations are ongoing.

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Gold Prices

HONG KONG (AP) _ Gold closes at $663.85 an ounce in Hong Kong, down $3.20 an ounce from Tuesday.

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Japan Markets

TOKYO (AP) _ Japan's benchmark stock index plunged 1.7 percent Wednesday as the yen strengthened after Wall Street's fall amid renewed jitters over the U.S. credit market.

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Dollar-Yen

TOKYO (AP) _ The dollar dropped in Asia Tuesday on jitters about U.S. credit problems following a decline on Wall Street overnight.

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