Morning Economic News - November 12, 2008

Asian stock indexes are down slightly while US stock market futures are up a fraction of a percent in overnight trading [3:07 AM Eastern]. Oil prices are down less than 1% and the dollar has moved a small fraction of a percent against the Canadian dollar, yen and pound. The dollar is down 0.22% against the euro.

Spanish economy holding on

The Spanish Leading Index dropped 0.2% in September, but this followed a 0.6% increase in the Leading Index in August
that stemmed almost entirely from expansion of Spanish contribution to
euro money supply, leaving the index up substantially for the two month
period.

U.S. Steps Up Help for Homeowners

Fannie and Freddie will help streamline the modification of
loans for potentially hundreds of thousands of homeowners at risk of
foreclosure.

China Retail Sales Rise 22% as Financial Crisis Fails to Rein in Spending China's retail sales rose 22
percent, close to the fastest pace in nine years, signaling
that domestic demand may help the fourth-biggest economy
withstand a looming global recession.

Japan's Economy Likely Ground to a Halt in Third Quarter as Exports Waned Japan's economy was probably at a
standstill in the third quarter as a deepening global slowdown
and weak demand at home edged the nation closer to its first
recession in six years.

Federal Reserve Said to Seek Lead on Regulating Credit-Swap Clearinghouse The Federal Reserve is working on a
plan that would give it authority to regulate the clearing of
trades for the $33 trillion credit-default swap market,
according to people with knowledge of the proposal.

Japan Consumer Sentiment Fell to a Record Low in October as Stocks Plunged Japan's consumers became the most
pessimistic they've been in at least 26 years, making it
unlikely they will spend to support an economy weakened by
slower global demand and falling stock prices.

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.

Australian Wages Growth Slows to 0.9% in Third Quarter as Economy Weakens Australian wages growth slowed in
the third quarter, adding to signs the economy is weakening.

Japan consumer mood hits new low on recession fear

World Bank cuts growth forecasts, offers more aid

Mexico auto production, exports rise in October