AP Executive Morning Briefing

The top business news from The Associated Press for the morning of Wednesday, September 19, 2007:

Asian, European Stock Markets Rally

TOKYO (AP) _ Asian and European stock markets rallied Wednesday in the wake of Wall Street's overnight surge spurred by the U.S. Federal Reserve's larger-than-expected interest rate cut. Japan's benchmark Nikkei 225 stock index soared 579.74 points, or 3.7 percent, to close at 16,381.54 points, marking its biggest point gain in more than five years. Hong Kong's Hang Seng index jumped 977.79 points, or 3.98 percent, to 25,554.64.

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Stocks Futures Point Higher

NEW YORK (AP) _ U.S. stocks pointed toward a higher opening Wednesday as Wall Street looked to extend its rally following Tuesday's half-point rate cut from the Federal Reserve. Stocks soared Tuesday after the Fed slashed the target federal funds rate to 4.75 percent from 5.25 percent because of signs that continuing credit market problems could hurt the overall economy. The Dow Jones industrials, soaring nearly 336 points, had their biggest one-day point gain in nearly five years.

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Rate Cut May Provide Only Passing Relief

WASHINGTON (AP) _ Like the tides, the wave of good feelings that swept over Wall Street and Main Street with the Federal Reserve's big rate cut could ebb just as quickly. Homeowners opening up statements for their adjustable-rate mortgages come October will experience a jolt when the rates jump, but not as severe a jolt as it could have been.

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UAW-GM Work Toward Contract

DETROIT (AP) _ As General Motors Corp. and the United Auto Workers enter their fifth day of bargaining under hour-by-hour contract extensions Wednesday, the unique issues that each of the Detroit Three automakers faces could make it difficult to use an agreement with GM as a pattern contract for Ford and Chrysler. All three companies are grappling with dwindling market share, high health care costs and too much factory capacity, but Ford may negotiate temporary wage cuts, for example, because its financial situation is the most dire, and Chrysler's status as a private company could affect its contract.

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Investors Hunt for Effects of Rate Cut

NEW YORK (AP) _ A big rate cut by the Federal Reserve and the stock market's huge rally in response to that move has many on Wall Street wondering: Now what? The Fed's decision Tuesday to slash its benchmark federal funds rate by a larger-than-expected half percentage point sent stocks soaring and lifted the Dow Jones industrials nearly 336 points. It also raised questions about the Fed's next step and how markets might fare in the coming months.

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Oil Prices Rise Above $82 a Barrel

SINGAPORE (AP) _ Oil prices rose Wednesday above the previous session's record close, lifted by expectations the interest rate cut by the U.S. Federal Reserve will accelerate growth and increase demand for already tight crude and gasoline supplies. Light, sweet crude for October delivery added 66 cents to $82.17 a barrel in Asian electronic trading on the New York Mercantile Exchange by midafternoon in Singapore.

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Asian Stocks Jump After Fed Rate Cut

TOKYO (AP) _ Asian stocks jumped Wednesday morning in the wake of Wall Street's overnight surge spurred by the U.S. Federal Reserve's larger-than-expected interest rate cut. Japan's benchmark Nikkei 225 stock index soared 531.49 points, or 3.36 percent, to 16,333.29 points on the Tokyo Stock Exchange at the close of Wednesday morning trading.

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House Votes to Aid Struggling Homeowners

WASHINGTON (AP) _ The House on Tuesday approved a plan to expand federal backing of mortgages in hopes of helping struggling homeowners avoid foreclosure. Despite some White House objections, the Bush administration and House Democrats took conciliatory stances pointing toward resolving their differences. The bill passed the House 348-72. It would allow the Federal Housing Administration, which insures mortgages for low- and middle-income borrowers, to back refinanced loans for tens of thousands of borrowers who are delinquent on payments because their mortgages are resetting to sharply higher rates from low initial "teaser" levels.

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Lehman Posts Better-Than-Expected 3Q

NEW YORK (AP) _ Lehman Brothers Holdings Inc. might have surprised investors Tuesday with better-than-expected quarterly results, but the No. 4 U.S. investment bank left them mostly in the dark on the details of its losses from bad mortgage-related debt. Whatever doubts they may have had, though, investors pushed the stock 10 percent higher after the Federal Reserve slashed interest rates to shore up the economy.

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Kroger Shares Rise As 2Q Profit Jumps

CINCINNATI (AP) _ Kroger Co. said Tuesday its profit jumped 28 percent in the second quarter, topping analyst expectations. The nation's largest traditional grocery chain boosted its outlook for the year. Its shares rose 7.5 percent. The supermarket operator said it earned $267.3 million, or 38 cents per share, for the three months ended Aug. 18, up from $209 million, or 29 cents per share, a year ago. Revenue rose 7 percent to $16.14 billion in the quarter from $15.14 billion last year.

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Gold Prices

Hong Kong (AP) _ Gold closed at $725.10 an ounce on Wednesday in Hong Kong, up $7.45 an ounce from Tuesday's close of $717.65.

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Japan Markets

TOKYO (AP) _ Japanese stocks jumped 3.67 percent Wednesday following Wall Street's overnight surge after the U.S. Federal Reserve Bank's larger-than-expected interest rate cut.

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Dollar-Yen

TOKYO (AP) _ The dollar rose against the yen Wednesday in Asia after dipping early in the session as the U.S. Federal Reserve's sharp interest rate cut overnight stoked concerns the U.S. economy's outlook may be gloomier than expected.

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