Today's Headlines

Bloomberg:
- The Federal Reserve cut the benchmark interest rate by three quarters of a percentage point, its first emergency reduction since 2001, after stock markets tumbled from Hong Kong to London.
- The European Central Bank and the Bank of England may have to follow the Federal Reserve and cut interest rates.
- The Bush administration today left the door open for a larger stimulus package than the $150 billion plan the president already has outlined to avert a recession.
- Ambac Financial Group(ABK), the first bond insurer to lose its AAA credit rating because of subprime mortgages, is considering “strategic alternatives” after posting its biggest-ever loss. The shares soared as much as 52% on optimism the company may be sold.
- DuPont Co.(DD), the third-biggest US chemical maker, said fourth-quarter profit rose as increase sales of seeds and chemicals in emerging markets more than made up for weak demand from domestic homebuilders and automakers.
- Fastenal Co.(FAST) the largest US retailer of nuts, bolts and other fasteners, rose the most in more than five years in NY treading after posting fourth-quarter earnings that outpaced analysts’ estimates.
- Countrywide Financial(CFC), the US mortgage lender being purchased by Bank of America(BAC), rose as much as 17% in NY trading as concern eased that the takeover may be revised or aborted.
- Investors should buy US stocks in the ongoing market sell-off, according to UBS AG and Bank of America(BAC) strategists, because share prices already reflect a slowdown in earnings growth.
- Roche Holding AG, the world’s biggest maker of tumor treatments, agreed to buy Ventana Medical Systems(VMSI) with an increased offer of $3.4 billion, ending a seven-month effort to acquire the US cancer test manufacturer.
- The CEO of the NYSE does not “see any evidence” that the US economy is headed into recession.
- The Bank of China, the nation’s second largest lender, on Tuesday denied reports that it might post sharply lower profits or even a loss in 2007 due to investments in securities linked to US subprime mortgages. “The reports were groundless,” said a statement from the bank.
- The International Swaps and Derivatives Assoc. said global losses on credit-default swaps will be nearer $15 billion than the $250 billion forecast by PIMCO’s Bill Gross.
- Google Inc.(GOOG), owner of the world’s most popular Internet search engine, is the best US company to work for, according to a Fortune Magazine survey.
- Crude oil fell to a six-week low in NY on worries over global demand, record production, a rising US dollar and less investment fund speculation.
- First Quantum Minerals Ltd., owner of the Kanshanshi mine in the Democratic Republic of Congo, said production of the metal will jump 37% this year as new mines build up to full capacity.

Wall Street Journal:
- Bill Clinton, the former US president, will gain about $20 million as he wraps up his business relationship with billionaire Ron Burkle’s Yucaipa Cos.
- Clinton, Obama Exchange Harsh Words In South Carolina Debate.

NY Times:
- Online Reviews of Hotels and Restaurants Flourish.
- US housing-market turmoil has set off a multitude of lawsuits as homeowners sue mortgage lenders, mortgage lenders sue banks, banks sue loan specialists and investors sue everyone.

BostonHearald.com:
- Raytheon Co.(RTN) is selling microwave technology to Schlumberger Ltd.(SLB), which hopes someday to be a key tool in unlocking the vast but hard-to-extract oil reserves in the West’s underground shale deposits.

US News:
- 4 Ways Consumers Will Feel the Fed Cut.

TimesOnline:
- Hedge funds to set up industry watchdog.