Today's Headlines

Bloomberg:
- The cost to protect US corporate bonds from default fell to an almost four-month low after the Fed cut its benchmark interest rate for the seventh time since the global credit turmoil began last year. Credit-default swaps on the Markit CDX North America Investment Grade Index of 125 companies in the US and Canada dropped 4 basis points to 90 basis points as of 2:22 pm in NY, according to Phoenix Partners Group.
- The Fed lowered its main interest rate by a quarter of a percentage point to 2%, the seventh cut since the onset of a global credit squeeze that’s eroded economic growth.
- General Motors(GM), the world’s largest automaker, posted a smaller first-quarter loss than analysts estimated. The stock is surging 12% on the report.
- AMR’s(AMR) American Airlines and British Airways may expand their marketing alliance and include Continental Airlines(CAL) as the carriers seek to boost sales without a merger.
- Chinese banks may risk higher bad loans after posting record profits in 2007, due to tighter credit controls and a slowing economy, the nation’s banking regulator said.

Wall Street Journal:
- Iraq Oil Revenue May Top Outlook. Report Urges Nation To Spend More Cash On Reconstruction.
- Getting to Know John McCain.
- This summer Starbucks(SBUX) is adding a line of smoothie-like drinks.

NY Times:
- Now short sellers are drawing fire once again. Across the world, these market bears are being accused of spreading rumors, persecuting companies and unsettling entire economies. Even on Wall Street, where money is seen as the ultimate measure of success, some wonder whether the shorts have gone too far. Some Wall Street executives question whether unscrupulous short sellers caused the collapse of the investment bank Bear Stearns(BSC). Others complain that shorts have been telling lies about other major firms in an attempt to sink stock prices. “This does beyond rumors,” Senator Chris Dodd said. “This is about collusion.” Concern about short sellers’ growing power gained new urgency last week when the SEC accused a former short seller of spreading false rumors about a big takeover and then profiting from the ploy. On the NYSE, short selling is running near record levels. Just over 4% of all the shares on the Big Board were sold short as of March. That figure excludes many rapid trades made every day. In all, short selling probably accounts for 25% or more of all trading.
- Three rival teams of computer researchers are working on new types of software needed to better use computer chips that can process many tasks at the same time.

TimesOnline:
- Homeowners in the UK will bear the brunt of a City slowdown as Britain takes the biggest hit of the global credit crisis, the chief economist at Goldman Sachs predicted today.

Business Report:
- While rising food prices are causing concern globally, South Africans can expect some relief as local farmers boost production. The crop estimates committee put the crop at 11 million tons, 55% higher than last year’s 7.1 million tons, when drought and lower prices produced only a modest crop. The wheat planting season was also under way in Argentina and Australia, which last year was seriously affected by drought. Expectations of improved supply as the year progresses are reflected in the difference between international spot wheat prices and prices for December.

Xinhua:
- China’s biggest trade fair received fewer buyers from developed economies and triggered fewer orders because of weak consumer demand in export markets, citing Xu Bing, a spokesman for the organizers. Visits from Japanese buyers plunged 28%.

Azzaman:
- Iraq’s Kirkuk crude oil exports to the Turkish Mediterranean port of Ceyhan climbed to 430,000 barrels a day in April. Iraq built its Ceyhan crude stocks to 4.5 million barrels because there were no attacks against the pipeline or major disruptions this month. Iraq exported 323,000 barrels a day of Kirkuk crude in March.

Ynet News:
- Speaking at a conference in Gaza, Mahmoud al-Zahar warns Israel Hamas has 200,000 suicide bombers waiting to attack.