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

Early Edition August 22 2008 at 05:59 AM Chi-Chu Tschang and Harry Maurer

Boeing's High Stakes Game in Tanker Contract Bid

The aerospace giant leaked word on Aug. 21 that it may drop out of the bidding for a $35 billion airborne refueling tanker contract with the U.S. Air Force unless the deadline is extended by six months. The move was seen as a tactical ploy to arouse support for the company's bid in Congress and the Bush Administration.

The threat of walking away--and leaving the Pentagon with a sole proposal from rival bidders Northrop Grumman and EADS--may be Boeing's most powerful weapon to win back some or all of the contract it lost in the initial round of the long-running saga.

Source: BusinessWeek, Wall Street Journal

Oil Prices Surge on Weaker Dollar, Russia Tensions

Oil prices soared more than $5 per barrel on Aug. 21, to $121, as a weaker dollar and anxiety over the conflict between Russia and Georgia erased any hopes for lower gas prices before the Labor Day holiday weekend in the U.S.

Source: Los Angeles Times

Apple Has Ambitious Plans for the iPhone 3G

The company intends to make at least 40 million iPhones in the next year, but selling so many will hinge on global success and fixing connection glitches. One thing that could help: A new $100 million venture capital fund that invests in iPhone software startups.

Source: BusinessWeek, New York Times

Verizon, Google Close to Mobile Search Deal

Sources say Verizon is near an agreement with Google on a wide-ranging mobile-search partnership, the latest sign that telcos recognize their homegrown search services have stalled--and that they need help from Internet giants.

Source: Wall Street Journal

Lehman Brothers Could Face Hostile Takeover, Analyst Says

The troubled investment bank may be ripe for a hostile bid, analyst Richard Bove of Ladenburg Thalmann told clients. He believes management is unwilling to sell voluntarily at a deeply-discounted price.

Source: Times of London

Investors Quit Russia After Georgia War

Figures released Aug. 21 show that investors pulled money out of Russia in the wake of the Georgia conflict at the fastest rate since the 1998 ruble crisis. Russian debt and equity markets also have suffered.

Source: Financial Times

Reports Offer Mixed Signals on the U.S. Economy

A grab bag of reports issued Aug. 21 provided contradictory news on the U.S. economy. Jobless claims fell and manufacturing in mid-Atlantic states declined less rapidly. But leading indicators dropped at their fastest rate in a year.

Source: Reuters/New York Times

Little Sign of Eurozone Growth Recovery

Economic growth shows scant signs of returning to the 15-country eurozone, as a purchasing managers report issued Aug. 21 tracked declining private sector output for the third month in a row. Inflation appears to be tempering, however, which could prompt a rate cut from the ECB.

Source: Financial Times

WPP Offers Cautious Outlook for 2009

London-based advertising giant WPP reported a 15% rise in first-half profits on strength in emerging economies, but warned that the media outlook for 2009 is less rosy.

Source: MarketWatch

Tata Turns to Asset Sales to Finance Auto Takeover

Unable to execute a planned $685 million rights offering due to tight credit markets, Indian conglomerate Tata will instead sell assets to pay for its acquisition of Jaguar and Land Rover.

Source: Times of London

Disney's Rights to Young Mickey Mouse May Be Invalid

Film credits from the 1920s reveal imprecision in copyright claims that some experts say could invalidate Disney's long-held copyright to early appearances of the iconic mouse.

Source: Los Angeles Times

Olympics Are Rating Bonanza for Chinese TV

Some 840 million people in China watched the opening ceremony of the Olympics on CCTV. Global corporations are taking notice of a broadcaster whose audience is larger than U.S. and European networks combined.

Source: New York Times

Conversation of the Day: Empty Seats at the Olympics

Reader David writes: "Empty seats or not, the hearts of Chinese people such as myself have been filled with pride throughout this Olympics!"

Read the Story and Tell Us What You Think