Morning Economic News - November 11, 2008

US stock markets Tuesday will still be trying to process Monday's news - Deutsche Bank rated General Motors shares as worthless predicting bankruptcy by year end, the second largest US consumer electronics retailer did file bankruptcy less than a month before retail's biggest day of the year, and DHL announced it will cut 9500 jobs and no longer offer shipping services in the United States. To top it off, economist Nouriel Roubini is predicting another 20-25% drop in the US stock market before the end of 2009. Amazingly US stock market futures are only down a notch, with the Dow Jones Industial Average and the S&P 500 down less than half a percent and the NASDAQ down just over a half percent [4:02 AM Eastern]. Asian stock markets aren't faring as well, with the Nikkei down 3%, the Hang Seng down 4.77% and the S&P/ASX200 down 3.58%. The dollar is mixed, down against the Canadian dollar, the euro and the yen, up against the pound. Oil is down 3% with gasoline flirting with the 130 cent mark.

Employment Trends Index - October 2008

• Employment Trends Index: 105.3


• Monthly Change: Down 1.8%


• Year-to-year Change: Down 12%

Deutsche Bank: GM Is Worth Nothing.

Deutsche Bank said publicly today what many detractors of General Motors Inc. have been thinking for some time — the company is worthless.

In a note, Rod Lache of Deutsche reduced his rating on the shares to
sell (helpful) and put a price target of $0 on the automaker, saying
the company has few options at this point beyond “external government
intervention.”

Data Show Deeper Recession in Europe

European economies are sliding deeper into recession, with
retail sales falling in Britain and factory output declining in Italy
and France.

Economists Urge G-20 to Act Quickly

Days before world leaders convene in Washington, they are
getting a raft of advice from academic economists on addressing the
financial crisis.

U.K. Home Sales Drop to Lowest in at Least 30 Years as House Prices Fall U.K. home sales declined to the lowest
level in at least three decades and the lending freeze pushed down
prices for a 15th month, the Royal Institution of Chartered
Surveyors said.

China's Inflation Slows, Leaving Room for Further Interest-Rate Reductions China's inflation cooled to the
slowest pace in 17 months, making further interest-rate cuts
more likely as the world's fourth-biggest economy loses steam.

ECB's Quaden Sees Forecast Revisions Paving Way for Lower Interest Rates European Central Bank council member
Guy Quaden said he expects the bank to reduce its forecasts for
economic growth and inflation ``substantially'' next month,
paving the way for lower interest rates.

China's `Huge' Stimulus May Help World Economy Along With Domestic Growth China's massive effort to shore up
its domestic economy may also do the world a favor.

Australia Faces First Recession in Two Decades as Export Outlook Darkens Australia's economy, which cruised
through the 1997 Asian financial crisis and the dot-com bust, is
facing the prospect of its first recession in almost two decades.

Paulson's Revised AIG Terms Begin Treasury Transfusions to `Zombie' Firms The revised bailout of American
International Group Inc. marks a new phase in the government's
effort to shore up financial markets: It's the first time cash
from the rescue fund Congress created last month has been
committed to a failing company.

German Investor Confidence Probably Stayed Near Record Low in November German investor confidence probably
stayed near a record low in November after the financial crisis
pushed Europe's largest economy to the brink of a recession, a
survey of economists shows.

Japan exports tumble as global downturn bites

Japan Oct corporate bankruptcies up 13.4 pct yr/yr

Japan exports fall 9.9 pct in first 20 days of Oct

Circuit City files for bankruptcy protection