Today's Headlines

Bloomberg:
- The Fed will eventually cut borrowing costs, rather than raise them, having held its target interest rate at 5.25%, said Bill Gross, manager of the PIMCO Total Return fund.
- A group of hedge funds is tell the SEC to be on the lookout for manipulation of bonds backed by subprime mortgages.
- Bank of Canada Governor David Dodge said the dollar’s rise since April to a 30-year high outpaced demand for the country’s products compared with past moves, and repeated he may raise interest rates to cool the economy.
- The Federal Reserve gave a more upbeat assessment of US regional economies, as manufacturing and job growth picked up.
- US 10-year Treasuries surged the most since February as speculators bet that yields at a five-year high will curb the economy and inflation. The 10-year yield is falling 12 basis points from session highs.
- Ihop Corp.(IHP) offered to buy Applebee’s Intl(APPB).
- The yen is falling to the lowest against the US dollar since December 2002 and declined against the euro as Treasury yields near the highest in five years encouraged investment outside Japan.
- Crude oil is rising $.80/bbl. after a government report showed refiners cut production again during driving season.

Wall Street Journal:
- International Lease Finance Corp. may announce next week an agreement to buy at least 50 of Boeing’s(BA) Dreamliners, which would be worth $10 billion at list price.
- Computer “widget” makers may be able to earn more advertising revenue from their applications due to new data to be published today by Web tracking firm comScore Inc.
- Ceridian Corp.’s(CEN) largest stockholder may say he’s opposed to the $5.3 billion sale of the US payroll and human-resources provider and that he’s hired bankers to find a higher bid.

NY Times:
- ConAgra Foods(CAG), which owns brands including Hunt’s, Manwich, Reddi-wip and Slim Jim, is trying to strengthen its product line by making small changes.

NY Post:
- Jones Apparel Group(JNY) is in the final stages of talks to sell its Barneys NY luxury department store chain to Dubai-owned investment company Istithmar PJSC.

Dow Jones:
- European Central Bank Council member Nicholas Garganas said future interest-rate decisions will be based on economic data.

Washington Post:
- Former NY Mayor Rudi Giuliani said that he would make good on 12 campaign promises if elected president in 2008.

LA Times:
- The Los Angeles Police Dept. plans to upgrade its 911 system to accept text messages, photographs and video from mobile phones within the next few years.

Nikkei English News:
- Sony Corp.(SNE), Matsushita Electric Industrial and three other Japan-based consumer electronics companies will start an Internet video-on-demand service to be used on flat-panel televisions.