Morning Economic News - December 23, 2008

Commentary and Overnight Trading

The Hang Seng Index is down more than 3% and the S&P/ASX 200 is down 0.73%, US stock market futures are mixed with DJIA futures down slightly, S&P500 up slightly and NASDAQ down slightly. NYMEX Crude Oil futures are down more than 1% on reports that Chinese oil production will rise 1.2%. This news after the US Energy Information Administration last week reported that three new US platforms coming online next year will produce nearly as much oil as the state of California. The dollar is up less than a tenth of a percent against the yen and the Canadian dollar and down against the euro and the pound. [3:29 AM Eastern]

Monday's Economic Numbers

Australian Leading Index fell for second month

• Leading Index: Down 0.5%


• Coincident Index: Up 0.2%

Mexican Leading Index dropped more than 5% in October

• Leading Index: Down 5.7%


• Coincident: Down 0.2%

What I'm Reading

Foreclosure Mitigation Makes Little Headway

Intensified efforts by mortgage servicers to help borrowers
stay in their homes failed to stem the growing number of foreclosures
in the third quarter.

Saudi Arabia to Boost Spending

Saudi Arabia plans to ramp up government spending next year
and incur its first budget deficit in six years to keep its economy
growing.

France's Consumer Spending Unexpectedly Rebounds as Energy Prices Decline French consumer spending unexpectedly
rebounded in November as stimulus measures and declining energy
prices cushioned the impact of the deteriorating economic
environment.

China Steps to Increase Consumer Spending May Follow Latest Rate Reduction China may follow its latest interest-
rate cut with steps to spur consumer spending as deepening
recessions in the U.S. and Europe pummel exports, one of the main
engines of the world's fourth-largest economy.

New Zealand Economy Shrinks 0.4% as Recession Deepens on Spending, Exports New Zealand’s economy contracted for
the third straight quarter, extending the nation’s first
recession in 10 years and adding to the prospect the central
bank will cut interest rates to a record low next month.

Frozen Ports From Long Beach to Singapore Presage Bleak Trade Into 2010 Chris Lytle, chief operating officer
of the port of Long Beach, California, took in a panorama of the
slumping world economy from his rooftop observation deck one day
this month.

Chile's Copper Windfall Props Up Spending While Ecuador Defaults on Bonds Chilean homemaker Majorie Rojo shrugs
when asked about the crash in the price of copper, the engine of
her nation’s economy.

Won, Rupee, Asia's Biggest Losers, Will Shine in 2009, Moody's Unit Says South Korea’s won and India’s rupee,
Asia’s biggest losers this year, will be the region’s biggest
gainers from improved appetite for emerging-market assets and a
recovery in the global economy, said Moody’s Economy.com.

Thailand's New Government May Increase Stimulus Spending by 80%, Korn Says Thailand's new government may
increase spending by 80 percent to spur an economy hurt by the
global recession and domestic political strife, Finance Minister
Korn Chatikavanij said.

World economies slide into recession

Dec 23 (Reuters) - New Zealand's economy contracted by its
biggest amount in eight years, third quarter data showed on
Tuesday, reinforcing expectations that its recession will not
lift until well into 2009

Asian shares ignore China cut

Dec 23 - Asia stock markets retreated for a
third straight day on Tuesday as more investors locked in profits on
the year-end rally and prepared to close their books ignoring a rate
cut by china.