Today's Headlines

Bloomberg:
- Goldman Sachs(GS) raised its outlook on the debt of Citigroup(C), saying the company is partially insulated from losses on seven investment funds it’s rescuing.
- The US dollar advanced the most against the euro since May 2005 as investors pared expectations for interest-rate reductions.
- The US Senate passed legislation that would make Federal Housing Administration loans available to subprime borrowers facing foreclosure, clearing the way for President Bush’s expected signature.
- The US economy probably won’t contract because the Federal Reserve will keep cutting interest rates, said Robert Doll, who helps oversee about $1.3 trillion as chief investment officer of global equities at BlackRock Inc.(BLK).
- Doll of BlackRock Says US Stocks ‘Reasonably Cheap.’ (video)
- President Bush said Congress should pass a year-end budget package without raising taxes or including “gimmicks.”
- Fannie Mae(FNM), the largest source of money for US home loans, is “very comfortable” with the quality of its mortgage portfolio and will prosper when housing market conditions improve, CEO Daniel Mudd said today.
- Ethanol producers surged after the US Senate approved energy legislation that will more than quadruple the use of biofuels over the next 15 years. President Bush will sign the bill into law if it reaches his desk.
- Tudor Investment’s Raptor hedge fund faces more than $1 billion in client redemptions after losing 8.5% this year, according to clients of the firm.
- Sugar prices are unlikely to rise next year as Brazilian production holds at a record and Indian output climbs to the highest ever, said Cosan SA Industria e Comercio’s finance chief.
- Dennis Garman, economist and editor of the Gartman Letter, is bullish on the US dollar.
- Gold is falling another $6/oz. as a rally in the US dollar eroded the appeal of the precious metal as an alternative investment.
- Crude oil is falling another $.38/bbl. on worries over slowing global demand, rising supplies and a firmer US dollar.
- Fed Chairman Bernanke said the central bank’s draft mortgage regulations next week will protect consumers without cutting off credit.

Wall Street Journal:
- Biotech giant Amgen Inc.(AMGN), reeling from safety and regulatory problems that have sunk sales of its flagship anemia drugs, is hoping to find salvation in the $7 billion global market for osteoporosis medications.
- Will Leap Wireless(LEAP) Do a Deal After All?

Federal Reserve Bank of San Francisco:
- Sovereign Wealth Funds May Grow to $17 trillion.

Digitimes:
- TomTom NV should be able to ship more than 10 million portable navigation devices this year, beating its own forecast, citing component makers. The sales increase will be driven by “strong” demand in the fourth quarter. Garmin Ltd.(GRMN) will ship 12 million units. On October 24 TomTom forecast shipments would rise to between 9 million and 10 million units this year.

Financial Times:
- Drake Management, one of the best-performing hedge funds last year, is in crisis talks with investors in its flagship fund following heavy losses from bets against US Treasuries, according to several investors.