Morning Economic News - December 3, 2008

Asian stock markets perked up a bit Wednesday with gains of 1.36% in Hong Kong and 1.79% in Tokyo. US stock market futures are pointing to a down open, off 1% overnight. Oil prices are up half a percent, giving back a fraction of the Monday/Tuesday drop. The old "flight to quality" appears to be in play again as the dollar is up strongly against the euro, pound and Canadian dollar, down less than a tenth of a percent against the yen.

PNC CHRISTMAS PRICE INDEX - Christmas 2008

• PNC Christmas Price Index 2008: $21,080


• Change: Up $1,573


• Percent Change: Up 8.1%


• Core Index (Excluding Swans-a-swimming): Up 1.1%

Price Data Clear Path for Rate Cut

Euro-zone
producer prices fell at their fastest rate on record in October, paving
the way for the ECB to cut interest rates again this week.

EU to Issue Guidelines on Bank Aid

The EU will issue guidelines this month for governments
planning to give money to their banks to support the wider economy,
Kroes said.

Thailand Lowers Benchmark Rate More Than Forecast as Protests Hurt Economy Thailand’s central bank cut its
benchmark interest rate for the first time in 17 months to
support an economy hurt by domestic political turmoil and the
global recession.

U.K. Consumer Confidence Falls to Lowest Since 2004 as Banks Curtail Loans U.K. consumer confidence deteriorated
in November to the weakest in at least four years as
unemployment jumped and banks curtailed credit, Nationwide
Building Society said.

Australian Quarterly Economic Growth Slows to 0.1%, Weakest in Eight Years Australia’s economy grew last quarter
at the weakest pace in eight years as household spending stalled,
increasing pressure on the central bank to add to the biggest
round of interest-rate cuts since a recession in 1991.

India May Increase Spending, Lower Interest Rates After Terrorist Attacks India may boost public spending,
increase export incentives and cut interest rates to support the
economy after the country’s worst terrorist attack in 15 years
last week undermined investor confidence, economists said.

Russian Service Industries Contracted Most on Record Last Month, PMI Shows Russian service industries ranging from
banking and telecommunications to supermarkets shrank in November
by the most on record as the global financial crisis deepened, VTB
Bank Europe’s gauge of industry performance showed.

Pakistan Promises IMF to Raise Interest Rates If Foreign Reserves Tumble Pakistan’s central bank promised the
International Monetary Fund as part of a $7.6 billion bailout
that it will increase interest rates further if the nation’s
foreign reserves drop too low.

Service Industries in U.S. Probably Shrank at Faster Pace as Sales Slumped U.S. service industries probably
contracted in November at the fastest pace on record, sinking
the economy deeper into what may become the worst recession in
decades, economists said before a report today.

Australia Has Scope for More Rate Cuts, Former RBA Chief Macfarlane Says Australia has room to lower interest
rates further and increase government spending to support the
economy amid the current global crisis, former central bank
Governor Ian Macfarlane said.

Finland May Cut 2009 Growth Forecast to Under 0.5%, Finance Minister Says Finland may lower its economic-growth
forecast for next year as the euro region as a whole is already
in a recession, Finance Minister Jyrki Katainen said.

Australia's Economy Expands 0.1 Percent in Third Quarter: Table of the Day Following is a summary of Australia’s key
GDP figures for the third quarter, seasonally adjusted, released by the
Australian Bureau of Statistics in Sydney.