Today's Headlines

Bloomberg:
- Crude oil is falling $.67/bbl. after an EIA report showed that refiners increased production and gasoline supplies fell less than estimates.
- Iraq, the site of the world’s third-largest oil reserves, will repair its northern pipeline and start exporting crude through it sometime in the third quarter, the country’s oil minister said.
- Saudi Arabia, holder of the world’s largest oil reserves, may not need to increase its oil-production capacity after 2009, the country’s oil minister said, because conservation and alternative energy sources could curb the consumption of oil.
- Sugar is falling again in NY, resuming a yearlong decline, on speculation that rising global production will exceed demand. Prices have plunged 54% since February of this year.

Wall Street Journal:
- Microsoft Corp.(MSFT) intensified a campaign to promote Open XML to counter attempts in several states to adopt OpenDocument Format promoted by Apple Inc.(AAPL), IBM(IBM), Sun Microsystems(SUNW), and Google Inc.(GOOG).
- Cisco Systems(CSCO), Advanced Micro Devices(AMD), Tyco Intl.(TYC) and other companies have turned to fixed billing from law firms including Fenwick & West to cut legal costs.
- Affiliated Managers Group(AMG) probably did its shareholders a favor when it bought as much as a quarter of AQR Capital Management LLC, a hedge-fund firm, two years ago. AQR’s assets have almost tripled since the fourth quarter of 2004 and some analysts say the firm may be contemplating an IPO.

NY Times:
- Delta Air(DALW), which emerged from bankruptcy protection Monday, hired a NY ad agency to develop $10 million worth of commercials to lure customers.

CNBC:
- Cablevision Systems Corp.s(CVC) board approved the sale of the company to the Dolan family for $36.26 a share.

Reuters:
- Clayton Dubilier & Rice and KKR will buy Royal Ahold NV’s US Foodservice unit for more than $6 billion.

Federal Reserve Bank of NY:
- Recent high correlations among hedge fund returns could suggest concentrations of risk comparable to those preceding the hedge fund crisis of 1998.

Financial Times:
- A surge in investments in energy-intensive heavy industries is worsening pollution in China, citing a study by the Peterson Institute for International Economics in Washington. “Huge investment” in steel, aluminum, cement and other plants has exacerbated the country’s energy use and emission of greenhouse gases. China now accounts for almost half of the world’s flat glass and cement production, more than a third of steel output and 28% of aluminum.
- NYSE Euronext(NYX) could still bid for the International Stock Exchange(ISE), noting that NYSE, which operates the New York Stock Exchange, lined up $3 billion in financing in the weeks before Eurex AG completed its arrangements to buy the ISE.

Toronto Globe and Mail:
- Peter MacKay, Canada’s foreign affairs minister, said he will investigate allegations that almost half the foreign spies operating in the country are working on behalf of China.