Morning Economic News - October 14, 2008

A bottom, a bear market rally or delusion in the face of depression? Monday's stock market rally in the US included a doubling of the record for Dow Jones Industrial Average increase in a single day. In overnight trading, Tuesday looks to be much more subdued. At 3:47 AM Eastern, Dow Jones Industrial Average futures were up 30 points. S&P 500 and Nasdaq 100 futures were up by similar percentages; Larger gains last week were followed by some very down days, though. Oil is rebounding and the dollar is trading mixed, but has picked up most of the ground it lost to the yen over the last several days. [Update: DJIA futures are up 126 points at 4:32 AM Eastern]

Paul Krugman wins the Nobel Prize in Economics

Krugman, however, insisted that he did not in practice favor
protectionism; it is difficult for policymakers to fine tune the
relevant variables.

Credit Crisis: Watching for Signs of Progress

A rundown of indicators to watch for progress on the credit crisis.

U.S. to Buy Stakes In Largest Banks

The U.S. is set to buy preferred equity stakes in several
top financial institutions as part of a broad effort to bolster the
banking system. Not all of the banks involved are happy with the move,
but agreed under pressure.

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As European Bailouts Gel, Sticker Shock Sets In

Fed Opens Cash Spigot to Overseas Markets

Bank of Japan to Hold Unscheduled Meeting Today to Discuss Monetary Policy The Bank of Japan said it will hold
an unscheduled monetary policy meeting today to discuss ways to
make it easier to add funds to money markets.

U.S. Said to Invest in Citigroup, Goldman, Bank America, JPMorgan, Wells The Bush administration will invest
about $125 billion in nine of the biggest U.S. banks, including
Citigroup Inc. and Goldman Sachs Group Inc., the latest step in
a global drive to shore up confidence in the financial system.

German Investor Confidence Probably Slumped as Financial Crisis Deepened German investor confidence probably
slumped in October as the deepening financial crisis threatened to
tip Europe into a recession, a survey of economists shows.

French Business Confidence Slumps to 15-Year Low on Prospects of Recession French manufacturing confidence
slumped in September to the lowest in 15 years as new orders
dropped ``markedly'' and the economy probably fell into a
recession, the Bank of France said.

Silvio Berlusconi Shares in Pain of Investors as His Losses Top $2 Billion Prime Minister Silvio Berlusconi
promises Italians they won't lose ``even a euro'' of their bank
accounts in the current credit crisis. By contrast, the world's
richest government leader according to Forbes has already shed
about 1.7 billion euros ($2.3 billion) of his personal fortune.

China's Currency Reserves Rise to Record $1.9 Trillion, Shielding Economy China's foreign-exchange reserves
rose to a world record $1.906 trillion, helping to strengthen
the nation's finances as the credit crisis threatens to trigger
a global economic slump.

Mexico gross fixed investment jumps 12.3 pct in July

Brazil eases bank reserve rules again amid crunch

France unveils 360 bln euro bank rescue plan

German financial plan worth 470 bln euros-sources

China trade surplus hits record despite global woes