Major Papers:

• According to the Wall Street Journal, General Motors Corp. (NYSE: GM) is considering acquiring DaimlerChrysler's (NYSE: DCX) Chrysler Group, but the company would face massive challenges if it were to take over its longtime rival. People familiar with the matter say GM has not ruled out the idea, however.
• Google Inc (NASDAQ: GOOG) launched a new bundle of services targeted at corporations, but CEO Eric Schmidt said the company is not looking to go "head to head" with Microsoft Corp (NASDAQ: MSFT), the Wall Street Journal reported.
• Barron's Online's "Inside Scoop" column wrote that Encore Acquisition Co. (NYSE: EAC) chairman Jon Brumley bought 40,000 shares of the company for $988,000. "Obviously," Brumley said, "we think the stock is going to move higher."
• The Financial Times reported that Morgan Stanley (NYSE: MS) has bought out its local partner in India, JM, for $445M to up its presence in Asia.
• The Financial Times also reported that EMI Group (OTC: EMIPY) is also exploring alternatives to Warner Music Group Corp.'s (NYSE: WMG) $6B takeover bid for the company. According to people familiar with the matter, no offers appear imminent.

Other Papers:

• Investor's Business Daily's "New America" column focused on online business Bankrate Inc. (NASDAQ: RATE). The company is established, credible, its brand name is known, it has no debt and it has over $100M on its balance sheet.

Merrill Lynch and Company Inc's (NYSE: MER) top executives have been selling a lot of stock, according to Barron's Online's "Inside Scoop" column (subscription required). So far this month, the top three execs have grossed $29.7 million. Supposedly, this is the highest level of monthly selling since January 2001.

Yesterday, HSBC Holdings plc (NYSE: HBC) increased its reserves for the blow-up of its mortgage portfolio. New Century Financial also reported blow-up results. Both of these companies are in the higher risk part of the mortgage market, but that is where the trouble always starts.

Brokerage firm results have been utterly spectacular for the past five years. A lot of that success can be attributed to the fixed-income business. However, the flat yield curve is most likely going to start impacting results as steep-yield curve trades begin to expire and cannot be replaced in this flat-yield curve environment.

The old-line brokerage firms are too big to report the results they have been reporting for so long. The law of large numbers has to apply at some point. The insider selling is pointing to a tough time ahead for fixed income traders and the brokerage stocks.