Morning Economic News - November 26, 2008

Overnight trading is relatively calm and pointing to bit less rocky day for US stocks Wednesday. US stock market futures are down just under 1% and the Nikkei is down 1.33%. Oil is up just under 1% after closing at a low just above $50/barrel, as Russia has announced it may coordinate production cuts with OPEC to shore up prices. The US oil report due out Wednesdsay would need to show a big inventory drop or a big spike in demand, neither likely, to put real strength under what's perceived as a mostly empty threat by cash strapped Russia. The US dollar is up more than half a percent against the Canadian dollar, unusual with a runup in oil prices, down against the yen and up against the euro and the pound.

Gross Domestic Product (GDP) - 3rd Quarter 2008 Preliminary

• Real Annual Growth Rate: -0.5%


• Previous Quarter Rate: 2.8%

Consumer Confidence Index - November 2008

• Consumer Confidence Index: 44.9


• Monthly Change: Up 6.1


• Expectations Index: 46.7


• Monthly Change: Up 11

Fed Aid Sets Off a Rush to Refinance

The Federal Reserve's attempt to stabilize the housing
market set off a chain reaction that dropped rates and spurred a burst
of refinancing activity by borrowers eager to lower mortgage costs.

Home Prices Continue to Drop

The S&P/Case-Shiller national index and a separate FHFA
measure both showed declines in home prices in the third quarter.
Separately, builder D.R. Horton's fourth-quarter loss widened.

US consumer confidence holds at record low-ABC survey

US economy shrinks at fastest pace in seven years

Mexico's Oct trade gap biggest since at least 1991

Fed Risks `Spitting in the Wind' With $800 Billion Pledge to Thaw Lending The Federal Reserve’s new $800
billion effort to combat the financial crisis is designed to
make credit more accessible to shaken consumers who aren’t sure
they want more debt.

U.S. Consumer Confidence Rises From Record Low as Gasoline Prices Decline U.S. consumer confidence unexpectedly
rose in November from a record low as falling gasoline prices
helped alleviate concerns about rising unemployment and tumbling
financial markets.

U.S. Economy Shrinks 0.5%, Most Since 2001, as Consumer Spending Plunges The U.S. economy shrank in the third
quarter faster than previously estimated as consumer spending
plunged by the most in almost three decades.

Russia's Ikea Shoppers Threatened as Nascent Middle Class Faces Job Losses While Russia’s oligarchs have lost
hundreds of billions of dollars in the global financial crisis, a
less-noticed threat to the nation’s economy comes from 24-year-
old Georgy Mironov.

South Korea Economy Will Shrink 2% in 2009 as Exports Fall, Macquarie Says South Korea’s economy will contract
2 percent next year as exports slump amid a global economic
slowdown, Macquarie Securities Ltd. forecasts.

Singapore's Industrial Production Declines as Global Recession Cuts Demand Singapore’s industrial production
declined for the third time in four months in October as
electronics manufacturing contracted amid falling global demand.

Australia to Avoid Recession on Rate Cuts, Government Spending, OECD Says Australia’s economy will avoid a
recession next year, helped by lower interest rates, government
spending and exports, the Organization for Economic Cooperation
and Development said.

Japanese Capital Spending Will Avoid `Collapse,' Economist Nabeyama Says Japanese companies will keep
spending during the recession to remain competitive, according
to the chief economist at the Development Bank of Japan.