WALL STREET JOURNAL: In a move to help cut expenses and save on fuel prices, UAL Corp. (UAUA), parent of United Airlines, will reduce its 460 airplane fleet by 70 jets. Not yet known is how may jobs will be affected, the Wall Street Journal reported…In an all stock deal, J.M. Smucker Co. (SJM) is expected to buy Folgers coffee from Proctor & Gamble (PG) for an estimated $2B, according to the Wall Street Journal. Folgers, the best selling ground coffee in the U.S., has annual sales of about $1.6B…FINANCIAL TIMES: The Financial Times reported that Lehman Brothers (LEH) lost $500M-$700M on some of its hedging positions in Q2, which have contributed to a larger than expected loss that could result in the bank raising more capital by selling a stake to an outside investor. Lehman has begun negotiations with potential investors, including asset managers and Asian banks, sources said…ROCKY MOUNTAIN NEWS: According to sources, the Rocky Mountain News reported that troubled home builder Beazer Homes (BZH) is pulling out of Colorado. Beazer, which is being investigated for mortgage fraud by several government agencies, has built homes in the suburbs of Denver and in Colorado Springs…

Lehman lost hundreds of millions on hedging positions-FT

Lehman Brothers (LEH) lost $500M-$700M on some of its hedging positions in Q2. Those hedging positions have contributed to a larger than expected loss that could result in the bank raising more capital by selling a stake to an outside investor. Lehman has begun negotiations with potential investors, including asset managers and Asian banks, sources say.

Softbank forms deal with Apple for iPhones-AP

According to a spokesperson for Softbank, the Japanese mobile carrier has formed a deal with Apple (AAPL) to sell its iPhone device. A spokesperson for rival carrier NTT DoCoMo (DCM) said the company was disappointed Apple had chosen Softbank, as the company was also considering a deal for Apple’s first iPhone venture into Japan. Apple is said to be planning to further expand through a partnership with Mexico City’s Movil, which has subscribers in countries such as Brazil, Colombia and Mexico.

Baidu.com criticized over music piracy; Advertisers asked to reconsider-WSJ

Three music industry associations have called Chinese Internet search provider Baidu.com “”the largest and most incorrigible purveyor of pirated music in China.” Chinese and foreign record companies want advertisers on Baidu.com to reconsider advertising with them. The statement was signed by the International Federation of the Phonographic Industry, the Music Copyright Society of China, and the China Audio-Video Copyright Association. They say record companies including Universal Music Group, EMI Group PLC, Sony BMG Entertainment and Warner Music Group Corp. (WMG), have signed the statement.