Today's Headlines

Bloomberg:
- Volatility on options for interest-rate swaps may decline as concern eases that losses in subprime mortgage loans and other risky debt will spread, according to RBS Greenwich Capital.
- US company bond risk fell from a two-year high today, according to credit-default swap traders who bet on corporate creditworthiness.
- Morgan Stanley(MS) says investors should reduce bets on European credit quality deteriorating because prices of credit-default swaps overstate the risk of companies missing debt payments.
- Crude oil fell for a third day on speculation that US refineries are increasing output and that OPEC might pump more.
- Eli Lilly(LLY) won the backing of a US panel to sell its osteoporosis medicine Evista for the prevention of breast caner in women after menopause.
- The US and Iranian ambassadors to Iraq agreed to establish a forum on security challenges in the war-torn country, including the threat posed by al-Qaeda.

Wall Street Journal:
- Nokia Oyj(NOK) will say today that it has purchased Twango Inc., an online photo- and video-sharing start-up, as the Espoo, Finland-based company seeks to move beyond mobile phones and into Web-related services.
- Lockheed Martin(LMT) is finding it hard to meet its production schedule for the new “Marine One” helicopter designed to carry US presidents.
- Foreign governments are increasing their investments in US and European companies, prompting concern over a political backlash and rise in prices for speculative assets.

Dow Jones:
- TPG Inc., a private-equity company, has made a bid to buy Ford Motor’s(F) Jaguar and Land Rover units.

NY Post:
- Time Warner’s(TWX) AOL unit plans to acquire the “behavioral targeting” advertising firm Tacoda for $200 million to $300 million.

AP:
- New Haven, Connecticut, today will become the first US city to issue identification cards to illegal immigrants.

CNBC-TV18:
- India’s Wipro Ltd. may pay as much as $550 million to buy a US company.

Sueddeutsche Zeitung:
- German intelligence authorities are bracing for possible terrorist attacks by members of the al-Qaeda network, citing senior security officials.

Islamic Republic News Agency:
- The Iranian Oil Ministry said OPEC will increase production if required. “If the oil market needs it, OPEC will inject more oil into it,” said Javad Yarjani, head of OPEC affairs at the country’s oil ministry.