Today's Headlines

Bloomberg:
- Yields on agency mortgage securities fell to the lowest in a month relative to U.S. Treasuries after buyers took advantage of some of the widest spreads since 1986. The difference between yields on Fannie Mae's current-coupon 30-year fixed-rate bonds and 10-year government notes narrowed 10 basis points this week to 197 basis points, data compiled by Bloomberg show, reducing the cost of new home loans. The spread fell from 215 basis points on Aug. 18, the widest since March, when the gap set a 22-year high of 238 basis points.
- Sugar dropped for a third day in New York on speculation demand for fuel made from cane may decline as the U.S. economy slows. Motor fuel demand will fall in 2009 unless gasoline prices drop sharply or the economy picks up, the U.S. Energy Department said this week. In the first six months of this year consumption was 1.5 percent lower than the same period last year and will average 0.2 percent less in 2009, it said. Sugar demand will exceed supplies by about 3.3 million tons next year after an 11 million-ton surplus in the year ending Sept. 30, London-based Czarnikow Group Ltd. said in a report this week.
- Crude oil rose .10/bbl. as producers evacuated rigs before the arrival of Gustav, forecast to be the largest hurricane in the Gulf of Mexico since Katrina.
- Nintendo Co. raised its full-year profit forecast by 26 percent because of higher-than-anticipated sales of Wii and DS game players, sending the company's shares to their biggest gain in nine months.
- Microsoft Corp.(MSFT), seeking to catch Google Inc. in the Internet-search market, agreed to buy Greenfield Online Inc.(SRVY) for $486 million to add Web sites that help consumers find product reviews and compare prices.
- India's economy grew at the slowest pace since 2004 last quarter as the fastest inflation in a decade and increased borrowing costs damped consumer spending.
- Europeans' confidence in the economic outlook fell more than economists forecast this month as the economy teetered on the brink of a recession.

Wall Street Journal:
- McCain Taps Governor Sarah Palin As Presidential Running Mate. Sen. John McCain picked first-term Alaska Gov. Sarah Palin as his running mate Friday, adding a little-known but reform-minded woman to his ticket. At a rally in Dayton, Ohio, he said she has "strong principles, a fighting spirit and deep compassion," and praised her record of fighting corruption.

Pacific Epoch:
- Rumor: China Mobile To Subsidize Apple’s(AAPL) iPhone.

MediaWeek:
- YouTube could soon carry advertising on its homepage for the first time, according to reports in the US. Bosses at the Google(GOOG)-owned video website are reportedly in talks to hand the site over to a sponsor, that would result in a banner ad spanning the width of the page.

Philadelphia Inquirer:
- Comcast Corp.(CMCSA) sees a new-customer boom on the horizon, thanks to the government-ordered transition to digital TV. The nation's largest cable provider says two million households that get free television in its cable-franchise areas may be forced to enroll with Comcast or another pay-TV company when the digital transition occurs.

USA Today:
- Venture capitalists today look far and wide for start-ups.

Reuters:
- The US dollar index on Friday was on pace for its best monthly performance since October 1992.

RIA Novosti:
- Russian Deputy Prime Minister Igor Sechin said a report that the country may cut oil exports should the European Union impose sanctions over South Ossetia was a “gross provocation.” Russia fulfilled its contractual obligations during the Cold War, and is a responsible and reliable energy partner. Russian oil groups are international companies with shares traded in Europe and the US, which means they could incur “negative consequences” should they fail to honor their commitments, he said.

Market News International:
- The European Central Bank won’t change interest rates this year as it weighs slowing economic growth against inflation risks, citing “well-placed sources.” The ECB needs to see a persistent decline in inflation before discussing a change in its benchmark rate, another official said. The bank is not sure whether the economy will grow in the third quarter, he said.