AP Executive Morning Briefing

The top business news from The Associated Press for the morning of Tuesday, October 16, 2007:

Oil Prices Rise to New Intraday Record

VIENNA, Austria (AP) — Oil prices surged more than $1 a barrel to new intraday highs Tuesday on fears Turkey will pursue Kurdish rebels into Iraq and disrupt oil supplies in the region. A weak U.S. dollar, low U.S. crude inventories and increased buying by investment funds also supported prices, counterbalancing expectations of higher inventories in the weekly U.S. supply report.

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Wall Street Poised for Another Retreat

NEW YORK (AP) — Wall Street appeared headed for another tough session Tuesday, as stock futures retreated on comments from Federal Reserve Chairman Ben Bernanke that housing remains a drag on the economy. Bernanke's comments late Monday during a speech at the New York Economic Club revived concerns that a recovery from the summer's credit crisis might take longer than expected. Investors also remain concerned about third-quarter earnings and rising energy costs.

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Genentech 3Q Profit Increases 21 Percent

SAN FRANCISCO (AP) — Genentech Inc. barely beat Wall Street estimates for the third quarter, and many analysts are skeptical that world's second-largest biotech company can maintain its scorching momentum amid new competition and a saturated market. Genentech reported Monday that net profit in the three months ended Sept. 30 was $685 million, or 64 cents per share, up 21 percent from $568 million, or 53 cents per share, in the same period a year ago.

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China Holds Its Biggest Trade Fair

GUANGZHOU, China (AP) — China kicked off the Canton Fair — the country's biggest trade show — this week amid lingering concerns about a series of embarrassing product recalls that have raised questions about the "Made in China" label. The biannual show in the southern city of Guangzhou, once commonly known as Canton, involved 32,005 booths — about 320 more than the last session, organizers said. About 15,000 companies were displaying everything from flip-flops and fur coats to garden shovels and black vinyl massage chairs equipped with flat-panel TVs showing gyrating go-go dancers.

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Bernanke: Housing Woes to Slow Growth

WASHINGTON (AP) — A deepening housing slump probably will be a "significant drag" on economic growth into next year and it will take time for Wall Street to fully recover from a painful credit crisis, Federal Reserve Chairman Ben Bernanke warned Monday. Bernanke once again pledged to "act as needed" to help financial markets — which have suffered through several months of turbulence — function smoothly and to keep the economy and inflation on an even keel.

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Chrysler Union Local Leaders OK Contract

DETROIT (AP) — There was some dissent and a lot of questions, but in the end, local United Auto Workers leaders voted to recommend approval of a new four-year contract with Chrysler LLC that is similar to one ratified last week with General Motors Corp. UAW President Ron Gettelfinger said the deal was approved overwhelmingly by voice vote among several hundred local union presidents and bargaining committee chairs. The vote clears the way for the union to present the pact to about 45,000 Chrysler workers covered by the contract, and balloting was expected to get under way in the next day or two.

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BankAmericard to Make a Comeback

NEW YORK (AP) — Bank of America Corp. said Tuesday that it is bringing back its BankAmericard, one of the first bank-issued credit cards to gain nationwide acceptance and a precursor of the Visa card brand. Unlike its predecessor of 50 years ago, the new BankAmericard will carry rewards, the Charlotte, N.C.-based bank said.

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Airbus Delivers A380 With Double Beds

TOULOUSE, France (AP) — Nearly two years late, Airbus finally delivered its first A380 superjumbo on Monday, a revolutionary behemoth that includes luxury suites equipped with comfy double beds. Customer Singapore Airlines says the passenger jet, the world's largest, was worth the wait, and the delivery marks a badly needed morale-boosting milestone for Airbus.

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3 Largest Banks Team on Rescue Fund

NEW YORK (AP) — The nation's three largest banks said Monday they are teaming up to create a rescue fund of sorts — potentially as large as $100 billion — to help bail out troubled global credit markets. Citigroup Inc., Bank of America Corp., and JPMorgan Chase & Co., at the prodding of the Treasury Department, will buy distressed debt from markets roiled during the summer's financial crisis. The joint effort is the result of more than a month of talks mediated by the government.

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Mattel Profit Dips on Recall Costs

LOS ANGELES (AP) — Mattel Inc., which spent much of the past quarter dealing with fallout from massive toy recalls, said Monday that the impact could hurt sales during the quarter that includes the holidays, even though it saw its third-quarter profit slip only 1 percent. The world's biggest toy maker said net income for the quarter ended Sept. 30 fell to $236.8 million, or 61 cents per share, from $239 million, or 62 cents per share, in the same period a year ago.

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Gold Prices

HONG KONG (AP) — Gold closed higher in Hong Kong Tuesday at $763.55 an ounce, up $7.70 an ounce from Monday's close of $755.85.

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Japan Markets

TOKYO (AP) — Japanese stocks dropped sharply Tuesday as financial shares were hit by credit crunch jitters on news that Nomura Holdings said it will lose money in the most recent quarter due to problems in its U.S. mortgage-backed securities business.

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Dollar-Yen

TOKYO (AP) — The dollar edged higher against the yen Tuesday in Asia as short-term investors hunted bargains in the U.S. currency following its overnight decline in the wake of Wall Street's slump.

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