Morning Economic News - January 12, 2009

Commentary and Overnight Trading

Asian stocks are trading down and US stock market futures are down slightly heading into Monday morning. Crude oil futures headed back below the $40 mark as the dollar rose against the euro, pound and Canadian dollar. The dollar is down against the yen. [3 AM Eastern] There is no expected news to drive this session, so watch for any breaking political or corporate news to move the markets today.

Economic Indicator Reports

Employment Situation - December 2008

• Total Employment: 143,338 million


• Nonfarm Payroll Employment: 135,489 million


• Monthly Change: Down 524,000

Wholesale Trade - November 2008

• Wholesale Sales: $349.2 billion


• Monthly Change: Down 7.1%


• Year-to-year Change: Down 7.6%

What I'm Writing Elsewhere

Financial Roadmap: The Week Ahead January 12 to 16, 2009

Unless we see a lot of surprises, this week is likely to be a mildly
down one in terms of economic news. That's not likely to translate into
any big downward moves in the the market which is in a sideways pattern
at the moment. Negative surprises certainly could yield some downside
and positive surprises could boost things, but moves are likely to be
temporary and muted by the mood in this last week before a new economic
team takes over in D.C.

What I'm Reading

Obama Team in Talks to Tap TARP

The incoming Obama administration is negotiating with
lawmakers to avoid a messy political fight as it seeks the second half
of the $700 billion bailout.

Protectionist Wave May Deepen Crisis

A wave of protectionism is swelling around the world that could further damage struggling economies.

Strauss-Kahn Says IMF May Need Another $150 Billion to Help Fight Crisis The International Monetary Fund may
need another $150 billion to help counter the hit to emerging
markets and poorer countries from a worsening global economic
downturn, Managing Director Dominique Strauss-Kahn said.

Trichet Shoved Toward Zero-Interest-Rate World as European Economy Worsens The sliding European economy is
propelling European Central Bank President Jean-Claude Trichet
toward the zero-interest-rate world he sought to avoid.

China to Tolerate Increase in Bad Debt, Ease Loan Rules to Support Economy China will tolerate an increase in
bad debt this year as it eases rules governing bank lending to
revive the slowing economy, the nation’s banking regulator said.

India Industrial Output Gains 2.4%, Rebounding From First Drop in 15 Years India’s industrial production
unexpectedly rose in November, after declining in the previous
month for the first time in 15 years amid a global recession.

Brown Pledges $758 Million to Spur Hiring, Counter Higher U.K. Joblessness U.K. Prime Minister Gordon Brown
will today pledge 500 million pounds ($758 million) to encourage
hiring and counter rising unemployment amid the deepest
recession in almost three decades.

Aso, Lee Pledge Closer Economic Ties as Japan, South Korea Tackle Crisis Japanese Prime Minister Taro Aso
and South Korean President Lee Myung Bak pledged to work together
to overcome a worldwide recession that has slashed demand for
Asian exports.

Venezuela Begins Stealth Devaluation as Plunge in Oil Shrinks Dollar Sales Venezuelan President Hugo Chavez says
he won’t adjust the oil-exporting country’s pegged exchange rate
amid a plunge in prices for crude. Instead, seeking to maintain
his popularity, he may devalue the currency by sleight of hand.

U.K. Banks, Financial Firms May Cut 15,000 Jobs in First Quarter, CBI Says U.K. banks, insurers and financial-
services companies may cut as many as 15,000 jobs in the first
quarter to reduce costs amid a decline in business confidence,
the Confederation of British Industry said.

Capitalism Freezes in Winter of Discontent From China to Russia to Nigeria As capitalism staggers through its
first globalized economic crisis, the costs won’t be measured
only in dollars and cents.