Today's Headlines

Bloomberg:
- Russia's RTS Index fell the most in more than two years, led by oil producers after crude sank to a five-month low and Energy Minister Alexei Kudrin said oil companies shouldn't expect further tax relief. The dollar-denominated RTS posted the largest fluctuation among national markets included in global benchmarks, tumbling 7.5 percent to 1,395.11.
- Copper fell to a 7 1/2-month low in London, leading declines in industrial metals, after a gain in stockpiles signaled weaker demand. Copper stockpiles monitored by the London Metal Exchange rose 1,300 metric tons, or 0.7 percent, to 202,125 tons, the highest since March 2007. Inventories have jumped 65 percent this quarter. Copper, aluminum and zinc may drop further because of slowing global economic growth, Anil Agarwal, the billionaire who controls Vedanta Resources Plc, said today. ``Further stock builds could see copper plumb new depths,'' said John Reade, head of metals strategy at UBS AG in London. ``We are seeing no signs of strong demand from bargain hunters,'' he wrote today in a report.
- Posco(PKX), Asia's largest maker of stainless steel, plans to extend an output cut this month on weak demand following similar reductions in July and August. Chinese makers said last month demand in China, the world's largest producer, will remain weak in September amid concerns that economic growth is faltering. The slowdown may deter stainless producers from buying more nickel, used to make the rust-resistant metal, and hurt prices that have dropped 28 percent this year. The South Korean government is considering measures, including lower taxes, to boost the domestic property market, which is struggling with the highest number of unsold homes in more than 10 years.
- Crude oil fell to a five-month low, leading commodities lower, after Saudi Arabia's oil minister said supplies are sufficient to meet demand. The oil market is ``well-balanced'' and inventories are ``healthy,'' Saudi Oil Minister Ali Al-Naimi said today in Vienna, suggesting the Organization of Petroleum Exporting Countries will maintain output. Oil is down 29 percent from a record in July. ``When you see oil lose close to a third of its value in a pretty short time, it shows you that commodities aren't worth what people once thought,'' said Ron Goodis, a futures trading director at Equidex Brokerage Group in Closter, New Jersey. ``Many markets are coming back to reality.'' ``Commodity charts speak for themselves -- not much hope for the bulls,'' said Ralph Preston, an analyst at Heritage West Futures Inc. in San Diego. ``Look for pension funds and endowments to sell on any bounces.''
- U.K. manufacturing production declined in July to the lowest level in 1 1/2 years as oil rose to a record, dragging on economic growth. Factory output fell 0.2 percent from June, the Office for National Statistics said today in London, declining for a fifth month.
- McDonald's Corp.(MCD), the world's largest restaurant company, reported August sales that rose more than some analysts estimated as consumers battered by higher gasoline and grocery bills bought $1 sodas in the U.S. and snack-sized chicken wraps in France.
- Lehman Brothers Holdings Inc.(LEH) fell as much as 43 percent in New York trading after talks about a capital infusion from Korea Development Bank ended. The Wall Street firm is continuing to negotiate with other potential investors, a person briefed on the matter said.
- Apple Inc.(AAPL) Chief Executive Officer Steve Jobs introduced thinner iPod media players that can hold twice as many songs, showing off new designs to entice consumers during the holiday shopping season.

Wall Street Journal:
- Momentum is building in Congress to increase funding for public transportation as transit agencies struggle to accommodate increased demand from Americans seeking to escape high gas prices.
- The next U.S. president should put more emphasis on countering biological threats as part of a rethinking of national security strategy, according to early assessments from the leaders of a commission investigating the threat from weapons of mass destruction.

CNBC.com:
- A number of U.S. banks stand to gain after the government takeover of Fannie Mae and Freddie Mac, as the move, coupled with the Treasury decision to buy mortgage-backed securities, brought much-needed liquidity back into the market, Dick Bove, analyst at Ladenburg Thalman & Co., told CNBC.

CNNMoney.com:
- Started by a stock trading system guy, Brett Markinson, and an artificial intelligence whiz, Ben Goertzel, Quant the News's first product StockMood (stockmood.com) analyzes an aggregated feed of news from hundreds of sources to gauge the mood of coverage for companies and their stocks.

NY Post:
- Frustrated by the market chatter about its health, battered hedge-fund firm Atticus has decided to give the market the silent treatment. The $14 billion fund - which last week quelled rumors that it was liquidating - plans to "suspend indefinitely the reporting of mid-month performance estimates," it said in a Sept. 4 letter to investors.
- Hedge funds - the daredevils of Wall Street - are backing away from risk, fearful of getting beaten up by the market's persistent turbulence. JPMorgan Chase's Highbridge Capital and Phil Falcone's Harbinger Capital are among a growing number of big-name hedge funds that are hunkering down, moving into cash and reducing the use of borrowed money, or "leverage," to inflate returns, sources said. "A lot of smart hedge funds are sitting on cash right now, and that's the position we've taken," said an employee at Highbridge, the $28 billion hedge fund shop in which JPMorgan holds a big stake. The flight to safety reduces the chances of any surprise blowups in the coming months. But it also kills the likelihood that any new stars will be born; fund managers' nerves are too frayed to make the kind of big, directional bets that could reap big rewards. In some cases, hedge funds - especially the poor performers - are being pressured by their lenders, known as prime brokers, to reduce their risk. Goldman Sachs, for example, is "tightening up their risk management and forcing funds to deleverage," said a person familiar with the situation. The flight to safety, whether voluntary or forced, started at the end of July, when one of the few sure-fire bets of 2008 - that oil prices will go higher and financial stocks will fall - suddenly failed.

USA Today:
- A bipartisan group of 16 senators is promoting an energy proposal that includes allowing oil drilling off the coasts of Virginia, North Carolina, South Carolina and Georgia, if their governors and legislatures approve, and spending $20 billion on an effort to move away from gasoline-powered vehicles within 20 years. Four more senators are expected to sign on this week. "Most Americans believe that we ought to put the politics aside and actually try and pass an energy bill that would so something to reduce gas prices." First up on the Senate's agenda will be a bill to increase oversight of energy trading markets by the Commodity Futures Trading Commission to try to prevent companies from engaging in excessive speculation. That legislation could be expanded to other far-reaching energy proposals, said Bill Wicker, spokesman for the Senate Energy and Natural Resources Committee.

Reuters:
- North Korean leader Kim Jong Il may have had a stroke, citing a US intelligence official.
- Cuba increased the price of gasoline and diesel yesterday and will adjust prices quarterly based on changes in the global oil market, citing a note in the Communist Party newspaper Granma. The price of regular gasoline rose 69% and diesel rose 87%. Fuel import costs are stressing the government budget.

Le Figaro:
- European Union Economic and Monetary Affairs Commissioner Joaquin Almunia said the European Commission will cut growth forecasts for the region. “Growth figures will be revised downwards and those for inflation upwards,” Almunia said.

Kommersant:
- Russia is “psychologically” unprepared for lower budget spending in the decades to come as the oil industry’s contribution to the economy drops, citing Finance Minister Alexei Kudrin.
- Accelerating August inflation is a “lesson” for Russia’s government that will keep it focused on ensuring a “civilized macroeconomic policy” next year, citing Finance Minister Alexei Kudrin. Companies are unable to plan long-term investments and secure loans for projects locally when inflation is higher than 7-8%, Kudrin said. Inflation accelerated faster than economists expected in August to an annual 15%.

O Globo:
- Brazil’s main stock index should extend 20% losses this year as a result of the US economic slowdown, director of Columbia University’s Center for Brazilian Studies, said. Trebat, who was the head of Latin American research for Citigroup Inc. until 2005, said that Brazil’s economy should grow no more than 3% next year, dragged down by lower exports to China and higher interest rates.