Morning Economic News - November 13, 2008

It's shaping up to be another down day on Walls Street Thursday. Asian stock markets are down - the Nikkei, Hang Seng and S&P/ASX 200 are all off more than 5% - and US stock market futures are off about a percent [2:30 AM Eastern]. Crude oil futures are down 1.8% and the dollar is up slightly against the Canadian dollar. The dollar is also up against the yen, euro and pound.

Korean economic slide deepens

The Korean economy headed further into the tank in September with the Leading Index adding a 0.7% decline to the 2.3% August drop
and the Coincident Index dropping 0.4%, twice the August rate. Three of
the four coincident indicators fell in September, with only monthly
cash earnings improving.

Bailout's Next Phase: Consumers

Paulson abandoned his original plan to buy troubled assets
from financial institutions. The Treasury will now focus on struggling
consumers.

Outlook in Russia, Ukraine Dims

Russia may have to tap into rainy-day reserves of billions
of dollars, while Ukraine data showed the country moving quickly toward
a recession next year.

China's Stimulus Package May Also Give California, Brazil, Japan a Boost China's stimulus package may help
support sales of Japanese farm equipment, Brazilian iron ore
and California machine tools, taking some of the edge off what
might be the worst global recession in three decades.

Germany Enters Recession After Economy Contracted 0.5% in Third Quarter The German economy, Europe's largest,
contracted more than economists expected in the third quarter,
confirming it has entered its worst recession in at least 12
years as the global financial crisis curbs exports and spending.

China's Industrial-Output Growth Slumps, Adding to Risk of Deeper Slowdown China's industrial output grew at a
slower pace than any economist forecast in October, stoking
concern that the biggest contributor to global growth is
running out of steam.

Paulson's Credibility Takes Another Hit as He Abandons Asset-Purchase Plan Henry Paulson became Treasury
secretary 28 months ago, when he was at the top of the financial
world: Wall Street's best-paid chief executive officer, capping
his career with a high-profile sojourn in public service.

Fed Pressures Banks to Maintain Lending, Warns on Dividend-Payment Levels The Federal Reserve and other U.S.
regulators told banks to maintain lending to ``creditworthy''
borrowers, and warned against dividend levels that would cut
funds available for loans, causing a deeper economic slump.

King Says BOE Is Prepared to Cut Interest Rates Again as Inflation Slows Bank of England Governor Mervyn King
said policy makers are prepared to reduce interest rates as low
as needed to prevent a recession from fueling deflationary
pressures.

Bank of Japan's Nakamura Says Economy May Deteriorate Further Amid Turmoil Japan's economy is at risk of
deteriorating further as the global financial turmoil slows
growth worldwide, central bank board member Seiji Nakamura said.

Bank of Canada Likely to Cut Rates Again Amid `Major Shocks,' Jenkins Says Bank of Canada Senior Deputy Governor
Paul Jenkins said policy makers will probably cut interest rates
again amid ``major shocks'' including a global credit crisis,
faltering economic growth and lower prices for commodity exports.

India Inflation Slows, Boosting Chances of Further Cuts in Interest Rates India's inflation rate fell more
than any economist expected to a five-month low, giving the
central bank room to further reduce borrowing costs to help
protect the economy from a global slowdown.

Plunge in steel demand pushes Ukraine towards recession

U.S. GDP forecast to decline 1.4 pct in 2009-EIA

BoE signals more rate cuts as economy shrinks