WALL STREET JOURNAL: The Wall Street Journal reported that the Federal Aviation Administration is planning to fine AMR Corp’s (AMR) American Airlines $7.1M for knowingly flying airlines that did not comply with maintenance regulations and reportedly violating drug- and alcohol-testing procedures for employees…The Wall Street Journal also reported that a division of UBS AG (UBS) was accused by New Hampshire securities regulators of urging a non-profit student lender to continue issuing auction-rate securities despite the bank knowing the market was nearing a collapse…NEW YORK TIMES: Deutsche Telekom’s (DT) T-Mobile is expected to become the first company to market a cellular phone utilizing Google’s (GOOG) Android software, inside sources said. HTC will make the phone, which is expected to be launched in the U.S. before Christmas, the New York Times reported…BLOOMBERG: Merrill Lynch (MER) recorded $29B of losses from its British subsidiary’s investments in U.S. subprime mortgages and collateralized debt obligations. As a result, Merrill’s tax obligation in Britain may drop by as much as $8B, according to Bloomberg…Bloomberg also reported that top executives at Star Surgical (STAA) are betting the company’s lens implants will gain on Lasik treatments and have purchased 93,050 non-option related shares so far this year, increasing rumors of a potential takeover. Heartland’s Adam Peck says the company may be an attractive target because of recent cost cutting efforts, little competition and potential sales growth and thinks Bausch & Lomb or Johnson & Johnson (JNJ) could take a second look at Star…

Blackstone may team up with other private equity firms to buy Informa-Telegraph
Private equity firm Blackstone (BX) is holding negotiations with private equity firms Providence and Carlyle about launching a consortium to bid for Informa, which publishes Lloyd’s List.

Asian Markets Wrap-Up for Friday, August 15
Asian stocks retreated ending a third consecutive down week as most Asian markets declined. South Korea and India markets were closed for holidays…JAPAN: The Nikkei 225 Stock Average was up 62.61, or 0.5%, to 13,019.41, while the broader Topix index gained 8.38, or 0.7%, to 1,247.31. Shipper Kawasaki Kisen jumped 4.9% to Y809. Mitsui O.S.K. Lines was up 2.8% to Y1,323. Ulvac surged 13% to Y3,480. Nikon Corp. (NINOY) added 3.8% to Y3,600. Elpida Memory rose 6.3% to Y2,795. Urban Corp. tumbled 82% to Y6…CHINA: The CSI 300 Index advanced 4.10, or 0.2%, to 2,447.61. Ping An gained 1.8% to 41.83 yuan. Merchants Bank increased 1.8% to 21.99 yuan. Shanghai Pudong Development Bank Co. added 0.7% to 21.26 yuan. Panzhihua Steel surged 10% to 7.58 yuan. Maanshan Iron & Steel Co. was up 2.6% to 4.38 yuan. Zijin Mining dropped 1.5% to 5.34 yuan. Haitong Securities Co. lost 3.9% to 16.88 yuan…AUSTRALIA: The S&P/ASX 200 Index was up 0.60, or 0.01%, to 4,981.70. Woodside Petroleum (WOPEY) lost 2.5% to A$54.20. Newcrest Mining (NCMGY) slipped 2.5% to A$24.43. BHP Billiton (BHP) fell 1.9% to A$37.98. Rio Tinto Group (RTP) sank 2.4% to A$115.15…AROUND ASIA: The Hang Seng Index fell 232.13, or 1.1%, to close at 21,160.58. Cnooc (CEO) dropped 4.3% to HK$10.72. PetroChina Co. (PTR) slid 1.1% to HK$9.95. Aluminum Corp. (ACH) was down 2.9% to HK$6.60. :

Dropped calls on the iPhone causing Apple headaches-WSJ
Apple’s (AAPL) new iPhone 3G has a software problem: A number of users are experiencing dropped calls, reports the Wall Street Journal. Apple had no comment. “It’s not about whether you have problems or don’t have them,” says Ken Dulaney with Gartner Inc. “It’s how quickly you address them that matters. If Apple addresses them, people will cut them slack.”

U.S. equity futures point to a higher open
U.S. equity futures are pointing to a higher open as oil prices continue to drop. The price of crude is lower by about $1.75 to about $113. Also falling is the price of gold which is down almost $30 an ounce to about $788 an ounce. Analysts are attributing the drop in commodity prices to slowing economies around the world, but the drop in energy prices has given U.S. investors hope that lower prices means more discretionary income. That has given the equity markets a boost over the past couple of weeks and is continuing to do so this morning

Balance sheet problems raise doubts about Wells Fargo-WSJ
Wells Fargo’s (WFC) premium valuation just lost some of its luster as new disclosures reveal that earnings may not be what they appear to be, according to the Wall Street Journal’s “Heard on the Street”. For one, illiquid assets, or “level three” assets, have grown signaling lower demand and possibly with big write-downs to follow. The company isn’t talking. Also, those level three assets include CDOs which could also portend big losses. Also, short term debt jumped 60% to $86.1B. Cheap money for now but that could change.