Your update of the most important business news from dozens of respected news sources, selected by the editors of BusinessWeek.

Early Edition July 23 2008 at 05:30 AM Edited by Chi-Chu Tschang and Harry Maurer

Bush Says Wall Street 'Got Drunk'

U.S. President George Bush said Wall Street had 'got drunk' and was experiencing a hangover during a speech at a recent fundraiser in Houston at which he also made light of the domestic housing crisis. In a video that emerged on July 22, Bush questioned how long Wall Street banks would remain sober and 'not try to do all these fancy financial instruments.'

The remarks contrast with the president's comments last week when he said: 'I think the [financial] system basically is sound.' In contrast, Bush told the Houston fundraiser: 'There's no question about it. Wall Street got drunk... it got drunk and now it's got a hangover.'

Source: Financial Times

Yahoo's net profit falls, investors worry

Yahoo's second quarter net profit fell 19%, but the company didn't change its economic outlook despite a weakening U.S. economy and the fallout from Microsoft's failed takeover bid. Now, investors are scouring the company's numbers for evidence that Yahoo's efforts to reinvigorate growth are taking effect and that the firm was justified in repelling Microsoft.

Source: Reuters, BusinessWeek

Lockheed Martin posts strong quarterly results

Lockheed Martin -- the world's biggest defense contractor -- reported strong second-quarter results on July 22 with profit up 13% over the same period last year. The company's one weak spot was aeronautics -- a shifting market for fighter jets caused revenue from the division to fall 8% to $2.88 billion.

Source: Washington Post

Nissan's Ghosn says auto industry in slowdown

Nissan Motor Chief Executive Officer Carlos Ghosn says the auto industry is entering a global slowdown due to declining European auto sales and plateauing growth in China. The U.S., the world's largest auto market, has been the industry's main trouble spot for the past two years, but now the issues are spreading further afield.

Source: Wall Street Journal

Abu Dhabi becomes major investor in GE

Mubadala -- Abu Dhabi's state investment vehicle -- said on July 22 that it plans to become one of the 10 biggest institutional investors in General Electric after announcing a series of deals with the U.S. company. That includes an $8 billion joint venture to set up a commercial finance business.

Source: Financial Times

Iranian president talks tough on nukes

Iranian President Mahmoud Ahmadinejad said his country will resist pressure from world powers to halt its nuclear program. In a speech broadcast on state television, Ahmadinejad said: 'If the great powers think they can sit down and discuss Iran's rights and pressurize Iranians, such a thing won't happen in 100 years.'

Source: Bloomberg

India weighs in on oil speculators

Indian Finance Minister Palaniappan Chidambaram said on July 22 that oil speculators are having a major inflationary impact on the country's growth. Citing testimony given in congressional hearings, Chidambaram said the inflow of $250 billion to commodities indexes indicates speculators have had a big role in the run-up in prices.

Source: New York Times

European automakers' profits remain strong

Volkswagen -- Europe's largest automaker -- said on July 23 that second-quarter profit rose 35% on sales of the Tiguan compact sport-utility vehicle and new car models. On the same day, PSA Peugeot Citroen -- Europe's second-biggest carmaker -- said its first-half profit increased 49% on cost cuts and buoyant demand for its new 308 compact and 207 small car.

Source: Bloomberg

U.S. banks look to sell money-management businesses

Struggling U.S. banks are trying to raise capital by attempting to sell their lucrative money-management units to raise cash. According to people familiar with the matter, National City is working with Morgan Stanley to shop its Allegiant Funds operation, which manages about $30 billion. About half of that comes from more than 30 mutual funds.

Source: Wall Street Journal

AT&T faces drop in landline demand

With millions buying the iPhone, AT&T -- the exclusive U.S. carrier for the phone -- should be pleased with the stream of revenue it can expect from customers. Yet, analysts say consumers are dropping traditional landlines faster than expected. AT&T still gets 32% of revenue from its landline business. The company is expected to address how its traditional phone service is contracting when it announces results on July 23.

Source: New York Times

GlaxoSmithKline makes a play for generic drug market

GlaxoSmithKline -- the world's second largest drugmaker -- took a step into the branded generics marketplace on July 23 via an alliance with South Africa's Aspen Pharmacare Holdings. Under the agreement, the British-based company gains access to a broad range of low-cost branded but unpatented medicines.

Source: Reuters

Latin American inflation hits five-year high

Driven by soaring costs for food and energy, inflation in Latin America is at its highest in at least five years. The International Monetary Fund predicts annual inflation for the region will reach 8.1% by the end of the year, compared with 6.3% in 2007.

Source: BusinessWeek

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