Today's Headlines

Bloomberg:
- Merrill Lynch(MER), Goldman Sachs(GS) and Bear Stearns(BSC), three of the five biggest US securities firms, had their long-term credit ratings raised by S&P, which cited improvements in liquidity and risk management.
- US regulators need to examine the $1.3 trillion hedge-fund industry to make sure investors are protected and systemic risks they might pose are known, Treasury Secretary Henry Paulson said.
- General Motors(GM), losing sales to Toyota Motor(TM), will use some of the $9 billion in savings from cost cuts this year to make vehicles that match the Japanese automaker in technology and fuel efficiency.
- US Treasuries are rising after a US government report showed inflation subsided last quarter, fueling speculation the Fed’s next move will be to lower interest rates.
- Investors in hedge funds overseen by George Soros, Louis Bacon and Paul Jones would have made more money this year by buying shares of a stock-index mutual fund. Managers of so-called macro hedge funds have lagged behind market benchmarks such as the S&P 500 after being caught off guard by reversals in stock, bond and commodity prices. Macro funds have risen on average 1.8% this year through Oct. 24 versus a 12% return for the S&P 500, according to Hedge Fund Research.
- Naval forces from the US-led coalition have been sent to protect Saudi Arabia’s Ras Tanura oil terminal after the threat of a terrorist attack from the sea.
- Crude oil was little changed despite threats to facilities in the Middle East amid speculation that ample inventories could meet any supply disruption.

Wall Street Journal:
- US construction spending will fall 1% next year. The anticipated decline will mostly be due to a 5% decline in the building of single-family homes and a 3% fall in the construction of shopping malls and retail outlets.
- Ticketmaster, owned by (IACI), has obtained an exclusive contract to supply tickets to the Beijing Summer Olympics.

NY Times:
- China and North Korea, which exchange oil, coal and electricity and goods, have continued to trade with one another under UN sanctions imposed in response to North Korea’s nuclear test.
- US corporate executives say their companies’ auditors are charging too much money while refusing to provide enough service. The auditors have been able to do so because of changes brought about by the Sarbanes-Oxley Act.
- Democrats are united in criticizing President Bush over the situation in Iraq but divided over how to improve it.

Commercial Mortgage Alert:
- The group proposing to buy Harrah’s Entertainment(HET) received commitments from banks willing to provide $7 billion of mortgage debt to help finance the takeover.

Interfax:
- Alcoa(AL) will spend about $160 million to increase production at its plant in Samara, Russia.

Globe and Mail:
- Canada won’t give amnesty for illegal workers employed in the underground economy.