PRESS DIGEST - New York Times business news - July 23

July 23 (Reuters) - The following were the top stories in the New York Times business pages on Wednesday. Reuters has not verified these stories and does not vouch for their accuracy.

* Mortgage rates are rising because of the troubles at the loan finance giants Fannie Mae FNM.N and Freddie Mac FRE.N, threatening to deal another blow to the faltering housing market.

* The Texas governor is leading a coalition seeking to waive the federal ethanol mandate because of costly grain.

* With the slowing economy taking a toll on the online advertising business, Yahoo Inc (YHOO.O) said Tuesday that its net income dropped by nearly 19 percent in the second quarter from a year ago as revenue grew at a sluggish 6 percent rate.

* A preliminary study by a federal task force concluded that the rise in oil prices over the last five years was "largely due" to rising demand for oil, rather than speculation.

* The electric cars that Nissan Motor Co (7201.T) plans to start selling by 2010 will have varying capabilities depending on a given country's driving patterns, but all will be priced competitively and will generate profits, company executives said Tuesday.

* United Airlines and US Airways Group Inc (LCC.N) said on Tuesday that they would cut even more deeply into their flying during the fourth quarter, while JetBlue Airways Corp (JBLU.O) said it would defer more aircraft deliveries, steps the carriers attributed to record prices for jet fuel.

* General Electric Co (GE.N) said it would partner with Mubadala Development Company, an Abu Dhabi-based sovereign wealth fund, to create an $8 billion commercial finance fund.

* In its sharpest criticism yet of the tobacco legislation pending in Congress, the Bush administration has said it "strongly" opposes the effort to give the Food and Drug Administration regulatory authority over tobacco.

* The United States took the first bold step in a week of crucial trade talks Tuesday, slicing $1.4 billion from a previous offer to limit contentious, trade-distorting subsidies to American farmers.

* Despite reassurances that he is cancer free four years after he was treated for pancreatic cancer, analysts are worried that Steven Jobs might be sick again.