Today's Headlines

Bloomberg:
- The risk of owning corporate bonds fell to the lowest in a month after Bank of America(BAC) invested $2 billion in Countrywide Financial(CFC), credit default swaps show.
- Crude oil is rising for a second day on reduced concern that subprime-mortgage losses in the US will spread, slowing the global economy and cutting energy demand.
- Most ABX indexes rose today, suggesting a drop in the perceived risk of defaults on subprime mortgage bonds.
- Argentina and Ecuador led emerging market-bonds higher as concern about the subprime mortgage crisis abated, prompting investors to buy riskier assets.
- Kenneth Heebner, the top-ranked US money manager, abandoned his bet against Amazon.com(AMZN) in the second quarter after the online retailer posted the biggest gain among stocks in the benchmark S&P 500.
- The yen headed for its biggest two-day decline against the euro since 2004 as investors resumed the so-called carry trade.
- GameStop Corp.(GME) rose as much as 8.3% in NY trading after the company boosted profit and revenue forecast for the year.

Wall Street Journal:
- The US plans changes in state and federal laws to make it easier for European service companies to do business in the US, citing American officials.
- While many traders are licking their wounds from a drubbing in the bond market, some veteran mutual-fund managers are finding buying opportunities.
- Franklin Income Fund’s Edward Perks and Legg Mason’s(LM) Bill Miller are among fund managers who are seeking bargains among junk bonds or real-estate investment trusts that have been hammered in the current market turmoil.
- Wachovia Corp.(WB), which added to its adjustable-rate mortgage business by buying Golden West Financial last year, has seen its shares punished during the subprime crisis, although it may well have the last laugh.

NY Times:
- AT&T(T) is moving to shrink its mobile-phone bills, which can run up to 300 double-sided pages for the Apple(AAPL) iPhone, after customers expressed both annoyance and amusement at their size.

Kuwait News Agency:
- Iraqi stocks rose .4% yesterday after international investors bought into the Baghdad market. Foreign investors accounted for almost 10% of the transactions.