Economic News - September 14, 2008

Financial Roadmap: The Week Ahead September 15 to 19, 2008

Normally the Tuesday Fed announcement should be the big event of the
week, but two things stand in the way. First, it's almost a foregone
conclusion that the announcement will be no change. Barring a surprise
move or a major shift in the announcement language looking to the next
meeting, that's a nonstarter for market moves. Second, like last
weekends seizure/bailout (depending who you ask) of Fannie and Freddie,
this weekend promises a big announcement on troubled investment banker
Lehman Brothers.

Producer Price Index (PPI) - August 2008

• Finished Goods Index: Down 0.9%


• Finished Goods Core: Up 0.2%


• Finished Goods Annual Change: Up 9.6%

Retail Sales - August 2008

• Total Retail and Food Service Sales: $381.2 billion


• Monthly Change: Down 0.3%


• Annual Change: Up 1.6%

No Deal Reached Yet for Lehman

The outlines of plans to determine Lehman's fate emerged as it became clear
that a clean sale of the entire firm would be too difficult to execute.

Retail Sales Tumbled in August

Retail sales in August were weak across the board, falling 0.3% from July, a sign that consumer spending is weak.

Options for Battling Crisis Narrow

The credit crunch could be entering a critical stage, with the share prices of Lehman and other financial firms reeling.

Paulson, Bernanke Brave `Raptors' in Resisting Taxpayers' Money for Lehman

Henry Paulson and Ben S. Bernanke may have to weather more speculative attacks on financial
institutions as they resist using public funds to aid the sale of Lehman Brothers Holdings Inc.

ECB's Weber Is More Confident on Inflation Outlook, Can't Give `All-Clear'

European Central Bank council member Axel Weber said the outlook for inflation has brightened
and the recent fall in oil prices is ``reassuring.''

China May Ease Lending Restrictions After Export Growth, Production Cooled

China's central bank may cut the amount of cash it requires lenders to set aside as reserves as
inflation slows and economic growth weakens.

EU's Almunia says still risks of second-round effects

ATHENS, Sept 13 (Reuters) - European Union and euro zone
inflation has probably peaked, but risks of second-round effects
should not be underestimated, EU monetary Affairs Commissioner
Joaquin Almunia said in an interview published on Saturday.