Morning Economic News - November 6, 2008

Asian markets are down 4 to 6% and US stock market futures are down just under 1% Thursday [1:51 AM Eastern] after Wednesday's 5% loss on Wall Street. NYMEX crude oil futures are down 0.9% and Brent Crude spot prices are down 2%. The dollar is down slightly against the yen and up against the euro, pound and Canadian dollar.

Mortgage applications dropped as rates spiked last week

New applications for home purchase mortgages dropped 13.9% and
refinance applications dropped 27.8% last week as 30-year and 15-year
Fixed Rate Mortgage (FRM) rates increased according to the Weekly
Mortgage Applications Survey from the Mortgage Bankers Association. The
1-year Adjustable Rate Mortgage (ARM) rate fell slightly, but points
paid on 1-year ARMs doubled and the interest rate remained nearly half
a percent higher than the 30-year FRM rate.

Weekly Mortgage Applications Survey - November 5, 2008

• Market Composite Index: 379.9


• Change: Down 20.3%


• Purchase Index: 260.9


• Change: Down 13.9%

ADP Employment Report - October 2008

• Total Nonfarm Private Employment: 115,798,000


• Monthly Change: Down 157,000

Nonmanufacturing Report on Business - October 2008

• NMI/PMI: 44.4


• Reading above 50 represents growing activity


• Change: Down 5.8

UK recession looking worse

These numbers solidify the case for the expected Thursday drop in the
bank rate by the Bank of England and point to even more rocky times for
the pound and for foreign investment in the UK.

Credit crunch could hurt oil exploration, boost prices as economy recovers

US crude oil and propane/propylene inventories were unchanged last
week, but inventories of gasoline and distillate fuels pushed total
commercial petroleum inventories up more than 5 million barrels.
Gasoline demand has perked up a little since prices began to fall, but
remains more than 2% below year ago levels and jet fuel demand is down
more than 15% compared to the same period in 2007.

U.S. Explores Its Options With TARP

Treasury reported it is exploring additional ways to apply the $700 billion financial-rescue package.

New Debt Could Hamstring Obama

U.S. borrowing in coming months will be at record levels, and could constrain President-elect Obama's economic agenda.

German Cabinet Clears Stimulus Plan

Germany's cabinet approved measures to boost the economy
that will cost the country's public finances about $29.9 billion over
four years.

Australian Jobs Unexpecteldy Surge on Interest-Rate Cuts, Cash Handouts Australian employment unexpectedly
surged in October by the most in six months, a sign lower
interest rates, government handouts and exports may help the
economy sidestep a global recession.

ECB May Cut Rate Again as Worst Slump in 15 Years Spurs `Radical Action' The European Central Bank will cut
interest rates for the second time in less than a month today as
the region's economy suffers its worst slump in 15 years,
economists said.

Japan Recession May Be Shallower Than U.S., Cabinet Office Economist Says Japan's recession will be shallower
than the U.S. and Europe because damage from the global credit
crisis has been limited, the Cabinet Office's top economist said.

King May be Forced Toward Zero Rate Policy as Economy Heads for Recession Bank of England Governor Mervyn King
may have to consider the most radical round of interest-rate
cuts since World War II as the financial crisis tears through
Britain's economy.

Japan Sept coincident indicator index +0.1 point m/m

Mexico's Walmex Oct same-store sales up 2.0 pct

Mexico Oct consumer confidence dives to record low