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On Wednesday September 8, 2010, 5:50 pm EDT

BP report blames itself, others for oil spill

NEW ORLEANS (AP) -- BP took some of the blame for the Gulf oil disaster in an internal report issued Wednesday, acknowledging among other things that it misinterpreted a key pressure test of the well. But in a possible preview of its legal strategy, it also pointed the finger at its partners on the doomed rig.

The highly technical, 193-page report attributes the worst offshore oil spill in U.S. history and the rig explosion that set it off to a complex chain of failures both human and mechanical. Some of those problems have been made public over the past 4 1/2 months, such as the failure of the blowout preventer to clamp the well shut.

The report is far from the definitive ruling on the cause of the catastrophe. For one thing, government investigators have not yet begun to fully analyze the blowout preventer, which was raised from the bottom of the sea over Labor Day weekend.

Obama: Don't extend tax breaks for wealthiest

CLEVELAND (AP) -- President Barack Obama strongly defended his opposition to extending Bush-era tax breaks for the wealthiest Americans on Wednesday and delivered a searing attack on Republicans and their House leader for advocating "the same philosophy that led to this mess in the first place."

Obama said the struggling U.S. economy can't afford to spend $700 billion to keep lower tax rates in place for the nation's highest earners despite a call by House Minority Leader John Boehner and other GOP leaders to do just that.

Obama's comments came as the administration rolled out new proposals designed to re-ignite a sputtering recovery, including new tax breaks for businesses and $50 billion for U.S. roads, rails and airports.

Fed survey sees slower growth in East and Midwest

WASHINGTON (AP) -- The economy lost strength in late summer as factory production weakened in areas of the East Coast and Midwest.

A survey the Federal Reserve released Wednesday found the slower growth spreading to more regions of the country.

Of the 12 regions the Fed tracks, economic activity slowed or was mixed in five -- New York, Philadelphia, Richmond, Atlanta and Chicago. Activity elsewhere was described as modest or pointed to positive developments.

In the Fed's previous survey in late July, only two regions -- Atlanta and Chicago -- had reported slower growth.

Stocks resume rally as European debt worries ease

NEW YORK (AP) -- Stocks resumed their rally Wednesday after a successful auction of Portuguese government debt eased worries about Europe's financial system.

The Dow Jones industrial average gained 46 points, and broader indexes also rose. European markets reversed their losses after the results of the auction were announced.

Major indexes pulled back from their highs in the afternoon after the Federal Reserve said more regions of the country saw slower growth late in the summer. The Fed's "beige book" report on regional economic activity showed five of the 12 regions tracked by the Fed showed mixed or slowing activity compared with just two during the most recent report in July.

Job openings rise for first time since April

WASHINGTON (AP) -- Job openings rose in July after two months of declines, a positive sign that companies could step up hiring in the coming months.

The Labor Department says the number of jobs advertised rose by 6.2 percent to 3.04 million. That's the highest total since April, when temporary census hiring inflated that month's figure. Even with the increase, total openings remain far below the 4.4 million that existed in December 2007, when the recession began.

The report, the Job Openings and Labor Turnover survey, indicates heavy competition for jobs. In July, 4.8 unemployed people, on average, were vying for each opening. That's an improvement from the peak of 6.3 in November 2009. But it's far more than the 1.8 unemployed people competing for each opening when the recession began.

Consumers cut back on credit card use once again

WASHINGTON (AP) -- Consumer borrowing fell again in July as households cut back on their credit card use for a 23rd consecutive month, adding more drag on an economy struggling to mount a sustained rebound.

Borrowing dropped at an annual rate of $3.6 billion in July, the Federal Reserve reported Wednesday. That marked the 17th drop in credit in the past 18 months.

Americans did boost borrowing for auto loans in July but this gain was offset by further reductions in the category that includes credit cards.

Google search accelerates with 'instant' results

SAN FRANCISCO (AP) -- Google Inc. stepped on its Internet search accelerator Wednesday by adding a feature that displays results as soon as people begin typing their requests.

The change, called "Google Instant," is the closest the 12-year-old company has come yet to realizing its founders' ambition to build a search engine that reads its users' minds.

The achievement wasn't lost on Google co-founder Sergey Brin, who jokingly told reporters that the company's lightning-quick computers are morphing into the "other third" of people's brains.

The shift means Google users will begin to see an ever-evolving set of search results appearing on their computer screens, potentially changing with each additional character typed.

AP Source: New GM CEO wants automaker to beat BMW

DETROIT (AP) -- The New CEO of General Motors Co. told employees that the automaker needs to make cars and trucks that are better than those of competitors such as BMW.

Former telecommunications executive Daniel Akerson, in his first webcast to employees since taking over as CEO Sept. 1, said the company needs to go into "attack mode" to stay ahead of rivals, according to a worker who watched the speech on Wednesday.

Akerson told employees that GM needs to keep competitors on their heels rather than responding to what they do, said the worker, who asked not to be identified because the webcast was not public.

AP Exclusive: Back to work after salmonella case

WASHINGTON (AP) -- The peanut industry executive whose filthy processing plants were blamed in a salmonella outbreak two years ago that killed nine people and sickened hundreds more is back in the business.

Stewart Parnell, former president of the now-bankrupt Peanut Corp. of America, is working as a consultant to peanut companies as the federal government's criminal investigation against him has languished for more than 18 months, The Associated Press has learned.

Parnell, who invoked the Fifth Amendment to avoid testifying before Congress in February 2009, once directed employees to "turn them loose" after samples of peanuts had tested positive for salmonella and then were cleared in a second test, according to e-mails uncovered at the time by congressional investigators.

Oracle plans to give Hurd $950,000 annual salary

NEW YORK (AP) -- Oracle Corp. plans to pay newly appointed co-President Mark Hurd a base salary of $950,000 annually and said the ousted Hewlett-Packard Co. CEO is eligible for a target bonus of $5 million in the current fiscal year.

Oracle released the details of Hurd's pay package in a filing with the Securities and Exchange Commission on Wednesday.

Hurd's pay package includes stock options totaling 10 million shares. The company said Hurd's options will carry an exercise price equal to the market value of the shares on the date they are granted, which the filing did not specify. If he stays with the company, Hurd will be awarded options to buy another 5 million shares each year for the next five years.

Appeals court dismisses Boeing-CIA lawsuit

SAN FRANCISCO (AP) -- A sharply divided federal appeals court dismissed a lawsuit challenging Boeing Co.'s role flying terrorism suspects to secret prisons around the world as part of the CIA's "extraordinary rendition" program.

The 9th U.S. Circuit Court of Appeals cited national security risks in its 6-5 ruling.

The lawsuit was filed by five men suspected of terrorism who were arrested shortly after the Sept. 11 attacks and say they were flown to secret prisons where they were tortured. The men sued Boeing subsidiary Jeppesen Dataplan in 2007, alleging that the program -- called "torture flights" by critics -- amounted to illegal "forced disappearances."

By The Associated Press

The Dow Jones industrial average gained 46.32, or 0.5 percent, to close at 19,387.01. The Dow had been up as much as 86 points earlier in the day before paring those gains after the Fed's regional economic report came out.

The S&P 500 index rose 7.03 or 0.6 percent, to 1,098.87, while the Nasdaq rose 19.98, or 0.9 percent, to 2,228.87

Benchmark crude for October delivery rose 58 cents to settle at $74.67 a barrel on the New York Mercantile Exchange.

In other Nymex trading in October contracts, heating oil rose 0.74 cent to settle at $2.0817 a gallon and gasoline gained 0.65 cent to settle at $1.9394 a gallon. Natural gas for October delivery fell 3.8 cents to settle at $3.814 per 1,000 cubic feet.

In London, Brent crude rose 43 cents to settle at $78.17 on the ICE Futures exchange.

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