Morning Economic News - October 6, 2008

If you thought everything would be coming up roses in the financial markets this week, guess again. US stock market futures are down approximately 2% in Asian trading (as of 3 AM Eastern Time), oil is down 3% (good news for drivers, but a bad sign overall), and the US dollar is mixed, down substantially against the yen and up against the euro.

Financial Roadmap: The Week Ahead October 6 to 10, 2008

Markets are likely to be on edge this week as they absorb the reality
of the largest single dollar intrusion of government in the marketplace
in history, though the ups and downs in most markets are likely to be
at least somewhat muted compared to last week. There will be plenty of
opportunities for markets to move as there is likely to be both good
and bad news in economic indicators this week. The big news this week
could come in other forms with all kinds of possibilities being touted
including a coordinated interest rate drop by several central banks –
such a move might come on Thursday when the Bank of England is
scheduled to make a rate announcement.

Nonmanufacturing Report on Business (ISM) - September 2008

• NMI/PMI: 50.2


• Reading above 50 represents growing activity


• Change: Down 0.4


• Business Activity/Production Index: 52.1


• Change: Up 0.5

Employment Situation Report - September 2008

• Nonfarm Payroll Employment: 137.318 million


• Monthly Change: Down 159,000


• Unemployment Rate: 6.1%


• Change: Unchanged

Shift in U.S. Role at IMF

Washington doesn't need a bailout package from the IMF, but
it could use the agency's help to boost the credibility overseas of a
U.S. regulatory restructuring.

Europe Races to Shore Up Banks

Europe worked to shore up its financial system while
Germany moved to guarantee bank deposits and planned a bailout for Hypo
Real Estate. Luxembourg and Belgium worked out a Fortis rescue.

Dubai Moves to Bolster Domestic Property Market

Dubai announced that a government-backed fund would start investing in domestic real estate amid Emirates' credit crunch.

UBS lowers China 2009 GDP growth forecast to 8 pct

BEIJING, Oct 6 (Reuters) - UBS on Monday lowered its forecast
for China's gross domestic product growth in 2009 to 8.0 percent
from 8.8 percent, citing a much weaker global growth outlook and
forecasts of a deeper and longer U.S. recession.