AP Business Highlights

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On Friday July 9, 2010, 6:12 pm EDT

China renews Google license despite censorship row

BEIJING (AP) -- China renewed Google's license to operate a website, preserving the search giant's toehold in the world's most populous country after the company gave up an attempt to skirt Beijing's censorship practices.

Google said Friday that Chinese officials had approved its Internet content provider, or ICP, license but gave no details of what services it would offer.

Renewal had been in question after Google began automatically redirecting users in China to an uncensored Hong Kong search site. But the company dismantled the virtual bridge to Hong Kong last week after regulators objected to the sleight of hand and threatened to revoke its Internet license.

FDA review spotlights heart risk of diabetes pill

WASHINGTON (AP) -- Federal health scientists have panned a GlaxoSmithKline study that the company used to defend the safety of its embattled diabetes drug Avandia, a once blockbuster-seller that fallen out of favor because of potential ties to heart attacks.

The Food and Drug Administration posted an exhaustive 700-page review of Avandia on Friday ahead of a meeting next week to decide whether the drug should stay on the market.

The FDA finds itself in a difficult position that's all too familiar: reviewing a drug approved a decade ago that now appears tied to deadly side effects. Experts say the FDA's predicament is a result of shifting standards for the agency: increased scrutiny on safety and stepped-up pressure from Capitol Hill.

Wholesale inventories rise in May, sales fall

WASHINGTON (AP) -- Inventories held by wholesalers rose for a fifth consecutive month in May but sales fell for the first time in more than a year, sending a cautionary signal about the strength of the recovery.

Wholesale inventories increased 0.5 percent while sales dropped 0.3 percent, the Commerce Department said Friday. It was the first decline for sales since March of 2009.

The May sales decline is the latest sign that the economic recovery could be losing momentum in the second half of the year. Weakness in sales could discourage businesses from boosting their orders. That would translate into a slowdown in factory production.

Stocks climb after Google wins license from China

NEW YORK (AP) -- The stock market ended its best week in a year with another gain Friday as investors placed their last bets before the start of second-quarter earnings reports.

The Dow Jones industrial average rose 59 points, or 0.6 percent. That gave the Dow its biggest weekly advance in a year, 5.3 percent. Broader indexes posted bigger gains. Trading volume was light, signaling that many investors were staying out of the market. But those who were trading appeared optimistic about the company reports that will be announced starting next week.

Friday's modest moves weren't surprising. Traders often avoid making big bets just before earnings releases because the reports provide a good picture of how companies are performing.

Feds say new cap could contain Gulf leak by Monday

NEW ORLEANS (AP) -- The BP oil leak could be completely contained as early as Monday if a new, tighter cap can be fitted over the blown-out well, the government official in charge of the crisis said Friday in some of the most encouraging news to come out of the Gulf in the 2 1/2 months since the disaster struck.

Crews using remote-controlled submarines plan to swap out the cap over the weekend, taking advantage of a window of good weather following weeks of delays caused by choppy seas.

Two relief wells are still being drilled deep below the seafloor to intercept the ruptured well and seal it up permanently with mud and cement, a job that may not be completed until mid-August.

One more round, perhaps, for Boeing and EADS

WASHINGTON (AP) -- For the companies vying over the last decade for the Air Force's troubled $35 billion refueling plane contract, it is try, try and try again.

Rival planemakers Boeing and the European defense contractor EADS submitted bids this week, Boeing on Friday, for the chance to build the new refueling plane.

It is the latest round in a tussle that has yet to produce a winner and has forced the Air Force to keep up its fleet of planes, some of which are more than 50 years old. And while the Pentagon has said it plans to award a contract in November, the history behind the tanker project shows there are no guarantees.

Patent holder sues smart phone makers over patents

NEW YORK (AP) -- The patent-holding company that won a settlement of more than $600 million from the maker of the BlackBerry said Friday it has sued six other companies in the smart phone industry.

Patent company NTP Inc. is suing Apple Inc., Google Inc., Microsoft Corp., HTC Corp., Motorola Inc. and LG Electronics Inc., claiming infringement of the same patents that were at issue in its case against BlackBerry maker Research In Motion Ltd.

The lawsuit against RIM ended with a $612.5 million settlement in 2006. However, changes in court practices have reduced NTP's power to win large settlements, and if NTP prevails, it's likely to receive much less from each defendant this time.

Anadarko tells BP it won't help pay for oil spill

NEW YORK(AP) -- Anadarko Petroleum Corp. says it won't help BP pay for the worst oil spill in U.S. history.

The Houston company, which owns 25 percent of BP's blown-out well in the Gulf of Mexico, said Friday it has refused to send the $272 million contribution that BP requested in June.

As part owner, Anadarko was on the hook to help pay to corral and clean up the spill. The company believes it should be excused from payments because of BP's reckless handling of the failed deepwater operation.

BP says it is disappointed by the announcement and will evaluate its options about what to do next.

Pump prices end the week lower, oil higher

NEW YORK (AP) -- Drives to the beach and summer road trips will cost less this weekend, with average gasoline pump prices around the country more than four cents lower than a week ago.

A gallon of unleaded regular costs $2.713, according to AAA, Wright Express and Oil Price Information Service. A year ago the average was $2.58 a gallon. Most analysts think gas prices have peaked for the summer and will be generally lower over the next couple of months. Demand remains weak with many consumers concerned about high unemployment numbers and the strength of the economic recovery.

Toyota chief hopes to lead company past crisis

NAGOYA, Japan (AP) -- The president of Toyota Motor Corp. said he has spent the last year apologizing for the automaker's missteps and now hopes to lead the company past its recall crisis and restore confidence in its vehicles.

Akio Toyoda, speaking to U.S. reporters on Friday, also reiterated the company's commitment to fuel-efficient vehicles and said the automaker is testing an electric car prototype with technology from Tesla Motors Inc.

Toyoda said he has spent much of his year-long tenure at the helm of the world's largest automaker apologizing for its mistakes. He said he now hopes to win back the confidence of customers and move past the crisis that has battered its vaunted reputation for quality.

By The Associated Press

The Dow rose 59.04, or 0.6 percent, to 10,198.03.

The Standard & Poor's 500 index rose 7.71, or 0.7 percent, to 1,077.96, while the technology-focused Nasdaq composite index rose 21.05, or 1 percent, to 2,196.45.

Crude oil rose 65 cents to $76.09 per barrel on the New York Mercantile Exchange.

In other Nymex trading, heating oil rose 2.04 cents to settle at $2.0257 a gallon, and gasoline gained 1.89 cents to settle at $2.0700 a gallon.

In London, Brent crude picked up 71 cents to settle at $75.42 a barrel on the ICE Futures exchange.

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