Today's Headlines

Bloomberg:
- Fannie Mae(FNM) and Freddie Mac bond prices rose and the cost to protect $1.45 trillion of their senior debt from default fell the most in almost four months as investors bet the US government will stand behind creditors of the two biggest mortgage-finance companies.
- U.S. Treasury Secretary Henry Paulson signaled that a government takeover of Fannie Mae(FNM) and Freddie Mac(FRE) won't be necessary, saying they should continue as shareholder-owned companies with federal charters.

Wall Street Journal:
- The June stock-market rout has battered two high-profile hedge funds. Prentice Capital Management LP, the New York firm started in May 2005 with about $400 million in start-up money from the huge hedge-fund firm SAC Capital Advisors LLC, has plunged 46% this year. Almost half of that drop happened during June as the value of the firm's stock and debt investments in retailers plummeted, according to investors.

NY Times:
- High Cost of Driving Ignites Online Classes Boom.

Washington Post:
- Hedge fund managers backing Obama for President.

AFP:
- Iran’s nuclear negotiator Saeed Jalili will hold talks with European Union foreign policy chief Javier Solana aimed at ending the country’s nuclear standoff with the west in Geneva on July 19.