Today's Headlines

Bloomberg:
- Citadel Investment Group’s purchase of Resmae Mortgage Corp. is the latest evidence that investors’ appetite for bonds backed by subprime mortgages is returning five months after the industry crashed.
- Accredited Home Lenders Holding(LEND), the subprime mortgage lender that said in March its survival might be in doubt, will be sold to private equity firm Lone Star Funds for about $400 million in cash.
- Crude oil rose above $66/bbl. to a one-month high in NY on worries over Nigerian production and a cyclone near the Strait of Hormuz.
- US Representative William Jefferson, a Louisiana Democrat, was indicted by a federal grand jury on charges of racketeering and seeking bribes.
- Shares of Dow Jones(DJ) declined for the first time in six days amid investors expectations that the Bancroft family may accept Rupert Murdoch’s $60 a share bid for the publisher of the Wall Street Journal.
- Apple Inc.(AAPL) plans to start selling iPhone June 29, as the company prepares to challenge Nokia Oyj and Motorola Inc.(MOT) with the new combination mobile phone and iPod music player.
- NYSE Euronext(NYX), owner of the world’s largest stock exchange, was sued for $4 billion along with three securities firms for providing inferior prices for trades executed through the Big Board’s automated Super Dot system.
- Flextronics(FLEX) will buy Solectron Corp.(SLR) for $3.6 billion to narrow the sales gap with larger rival Hon Hai Precision Industry.
- Wal-Mart Stores(WMT) was upgraded by at least 4 US brokerages following its decision to buy back as much as $15 billion of shares and reduce the number of stores being opened this year.
- China plans to use hydropower, nuclear energy, biomass fuels and gas to help cut 950 million metric tons of so-called greenhouse gas output by 2010.
- China’s benchmark stock index plunged 7.7% after the government’s main business newspaper signaled officials won’t try to halt a slump that’s erased more than $350 billion of market value in four days.

Wall Street Journal:
- Palm Inc.(PALM) is selling a 25% stake to Elevation Partners, a private-equity firm, for $325 million.
- Hewlett-Packard’s(HPQ) focus on selling through retail outlets helped the company reclaim its market lead over rival Dell Inc.(DELL).
- Google Inc.(GOOG) will broker advertising for the fashion and lifestyle sites of Glam Media Inc. and some of the more than 300 blogs and Web sites affiliated with the company.
- Hearst-Argyle Television(HTV) will distribute news, weather and entertainment video to Google’s YouTube in exchange for part of the revenue from advertising sold against the clips.
- Former Tennessee Senator Fred Thompson will rely heavily on the Internet to raise money and campaign for the Republican presidential nomination. Thompson plans extensive use of blogging and online video.

NY Times:
- The Weather Channel has devoted an increasing amount of resources to covering the issue of climate change since Hurricane Katrina stuck the US Gulf Coast in 2005. The network was criticized after host Heidi Cullen suggested in a blog that the American Meteorological Society not give its approval to meteorologists who “can’t speak to the fundamental science of climate change.”
- Some Apple(AAPL) executives are concerned that expectations for the iPhone may be too high and that initial customers may be disappointed.

Washington Post:
- Lawmakers returning to Washington after a week-long Memorial Day recess are confident the Senate will pass an overhaul of the nation’s immigration laws this week.

Women’s Wear Daily:
- Jones Apparel Group(JNY) may sell its Barneys NY unit for as much as $1.4 billion after bidding by two Middle Eastern investment firms has heated up.

USA Today:
- Nuclear power is gaining renewed interest in Europe amid concerns about fuel prices, climate change and the reliability of oil and natural-gas supplies from Russia.

Wall Street Journal Polska:
- Poland will boost its wind-power capacity almost 1,000% to 2,800 megawatts within two years, citing an Economy Ministry report.

Aksam:
- Turkey’s state exploration company has found evidence of the country’s second-biggest oil field near the central town of Nigde.

al-Watan:
- Kuwait Airways will buy 12 Boeing(BA) Dreamliner 787 passenger planes and seven Airbus A320 jets to upgrade its fleet.

Arab News:
- General Electric(GE) plans to expand its business in Saudi Arabia by investing in the kingdom’s energy, water and health-care industries, citing John G. Rice, vice-chairman of GE.