Today's Headlines

Bloomberg:
- European Central Bank President Jean-Claude Trichet and US Federal Reserve Chairman Ben S. Bernanke said they are concerned that investors are underestimating the amount of risk they are taking on in global markets.
- Rick Wagoner, CEO of GM(GM) says the company is making “major progress” in its recovery plan.
- Billionaire investor George Soros plans to invest a “significant amount” in Brazil’s ethanol industry.
- Crude oil is falling $.70/bbl. on speculation that a government report will show US refineries increased fuel output after a historical rash of nationwide “outages” recently pushed down gasoline supplies and boosted prices.
- White sugar dropped 3.4% in London on concern sales by producer countries are exacerbating an oversupply of the commodity.
- Goldman Sachs(GS) dropped its forecast for the Fed to reduce borrowing costs this year because of a resilient labor market and a reacceleration of growth in the industrial sector of the economy.
- NYC won its highest credit rating by S&P as surging Wall Street profits and a buoyant real estate market boost revenue, and as surplus funds are set aside to help pay for future costs.
- Fed Chairman Ben Bernanke said “tighter” lending standards for mortgages will “restrain” housing demand for longer than policy makers anticipated.
- A US agency today called a Chinese-made all-terrain vehicle unsafe, just weeks after regulators questioned the quality of products such as pet food and toothpaste that also bear the label “Made in China.”
- Al-Qaeda leader Osama bin Laden is alive and is still issuing instructions to his commanders in the field, a leading Taliban member said.
- Treasuries are falling, and the benchmark 10-year note’s yield touched a nine-month high, as an unexpected increase in a gauge of service industries prompted traders to undo bets that the Fed will cut interest rates.
- Exxon Mobil(XOM) and pipeline owner Enbridge Inc. said they’ve begun discussions with shippers to build a conduit capable of delivering Canadian crude oil to Houston refineries.
- UK broadcaster Channel 4 said it will air pictures of the aftermath of the car crash that killed Diana, Princess of Wales, rejecting a last minute plea for restraint from her sons Princes William and Harry.

Wall Street Journal:
- SAP AG(SAP) of Germany and California-based Oracle Corp.(ORCL) are competing to win software orders from small and medium-sized companies, and Oracle seems to be getting better reviews from customers, citing a survey by Nucleus Research.
- Vodafone Group Plc could be worth more split into parts than whole, leading to speculation that AT&T Inc.(T) or a group of hedge funds could be interested in a takeover.
- Genentech Inc.(DNA) is under increased pressure in Congress and from Medicare to cut the prices it charges for new drugs. The company’s strategy is to develop drugs needed and otherwise unavailable and to charge enough to recover research and development spending, which reached $1.8 billion last year. CEO Levinson says the company needs “healthy” margins on Avastin because the drug is a success and many others aren’t.
- Ron Burkle, the billionaire supermarket investor who tried to buy Tribune Co.(TRB), joined an effort by a Dow Jones(DJ) employees union to seek alternatives to Rupert Murdoch’s bid for the company.

NY Times:
- P. Schoenfeld Asset Management LLC, an investor in Biomet Inc.(BMET), plans to vote against the $10.9 billion bid for the maker of artificial hips and knees by a private equity group.
- Apple Inc.(AAPL) and Microsoft Corp.(MSFT), makers of the operating systems that power 750 million computers, are working on new systems that will integrate Internet-based programs.
- New Haven, Connecticut, officials voted yesterday to provide municipal identification cards for city residents, including illegal immigrants.

Washington Post:
- Some Democratic leaders are concerned that Representative William’s Jefferson’s indictment yesterday on racketeering and bribery charges could rekindle a smoldering dispute between House Speaker Nancy Pelosi and black lawmakers. Pelosi didn’t indicate what action she may take against Jefferson, instead calling the charges “extremely serious” and, if true, “an egregious and unacceptable abuse of public trust and power.”

NY Post:
- William Ackman, general partner of Pershing Square Capital Management, has raised $2 billion to buy a controlling interest in a company with a market capitalization of $30 billion to $40 billion. The target is an “iconic American company,” though Ackerman won’t identify the company.

Star-Ledger of Newark:
- Trump Entertainment Resorts(TRMP) may receive bids from an Atlantic City executive and a private equity firm.

Financial Times:
- A Chinese market slump may not lead to disaster if investors grow more discerning and stock values get more realistic.

BBC:
- Basque separatist group ETA has said it plans to end its ceasefire with the Spanish government tomorrow.

Bilan:
- UBS AG plans more acquisitions of banks that oversee rich people’s assets as the largest Swiss lender aims to expand its share of the global wealth management market, Chairman Marcel Ospel said.

Arab News:
- The Saudi Arabian General Investment Authority, or SAGIA, traveled to the US to promote $500 billion in new investment opportunities in the kingdom.