Today's Headlines

Bloomberg:
- The European Central Bank will act “wisely” to limit the economic fallout of a stronger euro, outgoing Italian Finance Minister Tommaso Padoa-Schioppa said.
- Richard Portes, president of the independent Centre for Economic Policy Research, said a hedge fund tried to convince him to talk down Iceland’s economy and banks and that he had reported the event to regulators. “They spent 30 minutes trying to convince me that Iceland is a disaster,” Portes said. “I found out later it was a senior executive, one of two founding partners at this hedge fund.”
- Washington Mutual’s(WM) full-year loss will be wider than first estimated, according to Goldman Sachs(GS) analysts, who recommended selling the shares short. “They’re in the eye of the storm in terms of the credit markets,” said Brian Horey, president of Aurelian Management LLC, who has sold Washington Mutual short. 162.9 million shares of (WM) are currently sold short.
- The cost of protecting European corporate bonds from default fell, according to traders of credit-default swaps. Contracts on the Markit iTraxx Crossover Index of 50 companies with mostly high-risk, high-yield credit ratings dropped 7.5 basis points to 500.5 today, according to JPMorgan. The Markit iTraxx Europe index of 125 companies with investment-grade ratings fell 3.5 basis points to 101.5. The CDX North America Investment Grade Index was little changed at 123 basis points.
- Crude oil fell in New York after the IEA cut its 2008 global oil-demand forecast for the third straight time.
- A global surplus of sugar may fall faster than estimated as Brazil, the world’s biggest cane grower, makes more ethanol and output declines in India and China.
- Goldman Sachs Group(GS) downgraded shares of General Electric(GE) to “neutral,” saying the company’s surprise first-quarter profit decline raises “credibility concerns.”

NY Post:
- JPMorgan(JPM) Lends $2 Billion to Buy Problem Loans.

BusinessWeek:
- Wall Street Firm Job Cuts May be Limited.

USA Today:
- Spending by independent political groups has more than doubled since 2004, in a sign that outside organizations are gearing up for sweeping influence in the heated presidential contest. More than $8 of every $10 spent has helped Democrats, according to the analysis of “independent expenditures” reported to the Federal Election Commission.

Forbes.com:
- Barack Obama, in remarks he planned to make to reporters Friday morning, wants Congress to pass legislation he has sponsored that would require corporations to have a nonbinding vote by shareholders on executive compensation packages.

TimesOnline:
- The new chip that will let an iPod store 500,000 songs.