The top business news from The Associated Press for the morning of Friday, May 9, 2008:

Housing aid bill faces veto by President Bush

WASHINGTON (AP) - Democrats' plans to help hundreds of thousands of homeowners struggling with rising subprime mortgage rates and plummeting house values could be sidetracked by President Bush's threatened veto and the backing of many congressional Republicans. Opponents of the plan say more prudent homebuyers and renters shouldn't be called upon to bail out borrowers who gambled on ever-rising housing prices and lost.

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Gates: Microsoft shifts focus after Yahoo deal collapses

JAKARTA, Indonesia (AP) - Microsoft Corp. will focus on growing its own advertising and Internet search business after it withdrew its takeover offer for Yahoo Inc., Chairman Bill Gates said Friday. Microsoft has not presented an alternative strategy to compete with its dominant rival in the Internet business, Google Inc., since withdrawing a $47.5 billion bid for Yahoo Inc. last weekend.

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GM to pay up to $200M to help end American Axle strike

DETROIT (AP) - A bitter, 10-week strike at auto parts supplier American Axle and Manufacturing Holdings Inc. could end soon now that General Motors Corp. has agreed to kick in up to $200 million to help settle the dispute, industry analysts said. GM said in a regulatory filing Thursday that it would provide the financial support for temporary payments to supplement reduced wages, and to fund employee buyout and early retirement packages.

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AIG posts 1Q loss of $7.8B, plans to raise $12.5B

NEW YORK (AP) - American International Group Inc. says it will raise $12.5 billion in the coming months as the insurer looks to shore up a capital base that has been rocked by deterioration in the credit markets. AIG shares tumbled $3.27, or 7.4 percent, to $41.45 in after-hours trading Thursday after the company disclosed it needs fresh cash and reported a first-quarter loss of $7.81 billion.

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Survey says executives see oil prices falling

HOUSTON (AP) - Even as oil prices ascended to new highs of more than $124 a barrel this week, many oil and gas industry executives say they expect the price to fall significantly by year's end, a new survey shows. Fifty-five percent of 372 petroleum industry executives surveyed by KPMG LLP said they think the price of a barrel of crude will drop below $100 by the end of the year. Twenty-one percent of respondents predicted a barrel of oil will end the year between $101 and $110, while 15 percent forecast the year-end price to be between $111 and $120 a barrel.

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Oil holds above $124 after record

BANGKOK, Thailand (AP) - Oil prices held above $124 a barrel Friday in Asia after hitting an intraday trading record as bullish momentum and renewed weakening of the U.S. dollar kept the commodity on its upward trend. Analysts, though, struggled to explain the continued strength of oil futures after a larger-than-expected build in crude oil stocks reported Wednesday in the United States. Some pointed to a small decline in distillate stocks, which include diesel and heating oil and normally drive prices during the Northern Hemisphere winter; others said it was mostly speculation and momentum keeping oil prices high.

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Japan Airlines reduces losses in latest quarter

TOKYO (AP) - Japan Airlines reduced losses in the January-March quarter from a year earlier on cost cuts but forecast lower profit Friday for this fiscal year, blaming soaring fuel costs and intense competition. The nation's top carrier, also known as JAL, had a 3.53 billion yen ($34 million) loss for the fiscal fourth quarter, better than the 6.89 billion yen loss the company had the same period the previous year.

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China producer price index up 8.1 percent in April

SHANGHAI, China (AP) - China's producer price index, a key inflation indicator, rose 8.1 percent in April over the same month a year earlier, the government reported, as a top economic official urged Friday for controls to cool further price increases. China is struggling to rein in inflation, and the greater-than-expected price gains in raw materials and industrial inputs suggests that recent state media reports of a rapid moderation in the consumer price index may have been premature.

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More shoppers seeking shelter from economy in discounters

NEW YORK (AP) - Caught in the maelstrom of higher gas and food prices, Americans - even more affluent ones - are seeking shelter in wholesale clubs and discount apparel chains. Low-price operators Costco Wholesale Corp., Wal-Mart Stores Inc. and TJX Cos. reported better-than-expected sales on Thursday, while traditional apparel chains J.C. Penney Co. and Limited Brands Inc. struggled.

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Top 3 air carriers boost fuel charge by $20 roundtrip

NEW YORK (AP) - The three biggest U.S. carriers said Thursday they have again raised ticket prices, this time by $20 roundtrip, to recoup rapidly rising fuel costs. The increases by American Airlines, United Airlines and Delta Air Lines affect the carriers' fuel surcharges, which now total $130 roundtrip on many flights. That means passengers on some cheap flights could be paying more in fees and taxes than for the airfare itself.

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Gold Prices

LONDON (AP) - Gold bullion opened Friday at a bid price of $883.45 a troy ounce, up from $867.70 late Thursday.

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Japan Markets

TOKYO (AP)- Japanese shares dropped Friday as selling spread across the board following Toyota's bleak earnings projection. The benchmark Nikkei 225 index sank 287.92 points, or 2.06 percent, to 13,655.34.

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Dollar-Yen

TOKYO (AP) - The dollar bought 103.12 Japanese yen Friday, down from 104.17 yen in New York the night before.

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A service of The Associated Press. Copyright 2008 All rights reserved.

Comments from Examiner Readers

11:13 AM MST on Wed., Jan. 23, 2008 re: "AP Executive Morning Briefing"

Examiner Reader said:
re: gold prices,so you have gold bullion under your mattress. what are you going to turn it into to spend it at the grocerystore,seashells or little hand carved idols? we have to have worthless currency to keep worthless govts running.

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