UBS Will Disclose Names, Pay $780 Million to End U.S. Tax Case
Feb. 19 (Bloomberg) -- UBS AG, Switzerland’s largest bank, will pay $780 million and disclose the names of some secret account holders..

Madoff Loss Spawned in ‘Bargain With Devil’ at Cerberus Bank
..As many as 50 percent of companies owned by private-equity firms may default by 2011, according to a study of 328 holdings by Boston Consulting Group.

Obama Sets $75 Billion Plan to Stem U.S. Foreclosures (Update1)
Homeowners also are eligible for $1,000 annually for five years for remaining current on their loans, according to the plan.

Quick Overview

• U.S. housing starts plunged 17% percent last month to an annual rate of 466,000.
  

• The Mortgage Bankers' Association said mortgage applications rose 46% last week.
  

• Australia’s retail sales rose 0.8%
  

• Canada’s wholesale sales fell 3.4% in December
  

• Construction output in the Euro area fell 2.2%MoM and 10.1% YoY.
  

• Demand for gold rose by 29% to $102bn last year, according to the World Gold Council.
  

• Latvia's Finance Ministry announced that the economy will shrink 12% this year.
  

• Greenspan said the U.S. government may have to nationalize banks “temporarily”.
  

• The number of idle containerships has increased to 392, aggregating to 1,100,000 TEU, or 8.8% of the box fleet, according to Paris-based AXS-Alphaliner News.
  

• E*Trade reported a 30% slide in new accounts opened in January as it deals with a waning appetite for the equities markets.

Quick Overview

• The New York Federal Reserve's regional index of manufacturing fell from -26.14 to -39.08
  

• YoY, the number of U.S. airline passengers fell 12.8% in November – the biggest drop in domestic and international passengers since January 2002.
  

• Singapore January exports fell 35% as global demand collapses.
  
  

• Japan's GDP fell 3.3% in Q4
  

• YoY U.K. consumer prices rose 3.0%
  

• Canada’s manufacturing sales fell 8.0% in December
  

• (CNN Money) There's a nice windfall for some homebuyers in the economic stimulus bill awaiting President Obama's signature on Tuesday. First-time buyers can claim a credit worth $8,000 - or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes.

• The SEC filed charges against R. Allen Stanford, alleging he orchestrated a multi-billion dollar scheme centering on an $8 billion CD program.

• General Motors said it needs $16.6 billion in new U.S. loans. Chrysler needs another 5 billion

Eastern European currencies crumble as fears of debt crisis grow
Austria’s banks are the most exposed with the share of risk-weighted assets tied to the region reaching 54pc for Raffeisen and 38pc for Erste Bank. The exposure of Germany’s Bayern Bank is 48pc, Italy’s UniCredit is 45pc, and Swedbank is 29pc.

Banks Face Downgrades on Eastern European Losses, Moody’s Says
Feb. 17 (Bloomberg) -- Austrian, Swedish and other banks with subsidiaries in eastern European may face rating downgrades as economies in the region deteriorate, according to Moody’s Investors Service.

Still aglister
..world gold supply will contract more slowly than demand, causing excess supply to rise by 21% to 553 tonnes. Only the worldwide flight to safety and the lack of appeal of other assets, it seems, will keep gold prices high.

Dreadful economic results in Japan suggest that things will only get gloomier
The preliminary estimate suggested that the economy had shrunk at an annualised rate of 12.7% during the period, the third consecutive quarter of contraction.

When stress is at its worst, sex can stop you fretting When a couple are lying in bed and the man is worrying about his job and the woman is fretting about her savings, neither of them is properly primed for sex.
It is a pity..

Failure to save East Europe will lead to worldwide meltdown
Whether it takes months, or just weeks, the world is going to discover that Europe's financial system is sunk, and that there is no EU Federal Reserve yet ready to act as a lender of last resort or to flood the markets with emergency stimulus.

House panel adopts financial oversight bill
It would expand the authority of the Commodity Futures Trading Commission, one of the smallest federal agencies, by giving it criminal prosecution power over companies and individuals that violate antifraud rules - something only the Justice Department is now empowered to do. And it specifically prohibits the Federal Reserve from regulating the derivatives markets, saying either the CFTC or the Securities and Exchange Commission could step into that role.

Quick Overvieww

• The University of Michigan's index of consumer sentiment fell from 61.2 to 56.2
  

• GDP in the Euro area fell 1.2% YOY
  

• Germanys GDP fell 2.1% QoQ, the biggest drop since 1987
  

• Canada’s new vehicle sales fell 14.8% MoM and 22.5% YoY.
  

• South Korea lowered its interest rate from 2.5% to 2.0%.
  

• (Reuters) - G7 finance ministers headed to Rome to discuss the global economic crisis on Friday with a warning from Germany that the world could be plunged back into the dark days of the 1930s if governments resorted to protectionism.
  

• The U.K. government is urged to ensure bank chief executives have a "recognized banking qualification".
  

High debt levels endanger Britain's AAA credit rating for first time
The massive bank bail-outs and fiscal packages have created a new hazard known as "risk socialisation".

Quick Overview

• U.S. retail sales rose 1.0% in January

• U.S. Jobless claims were 623,000 last week
  

• Australia’s unemployment rate rose from 4.5% to 4.8%
  

• Euro area industrial production fell 2.6% MoM and 12.0% YoY.
  

• YoY prices of existing U.S. single-family homes fell 12.4% to $180,100 in the fourth quarter -- the National Association of Realtors said on Thursday.
  

• China's CPI rose 1.0% YoY
  

• South African gold output fell 17.6% YoY

China’s New Loans Rise by Record on Stimulus Efforts (Update2)
The jump in new loans to twice the record set a year earlier shows China may succeed in reviving growth even as credit markets around the world remained locked..

Quick Overview

• European banks sitting on £16.3 trillion of toxic assets may suffer massive losses according to a confidential Brussels document.

• The U.S. trade deficit shrank 4.0% in December to $39.93 billion.
  

• The U.K.'s unemployment rate at 6.3%, up from 6.1% MoM.
  

• Canada’s exports fell 9.7% in December while imports fell 5.7%.
  

• China's trade plunged in January. YoY exports fell 17.5%, imports fell 43%.
  

• The Bank of England signaled it was prepared to take unconventional steps (printing) to boost the UK economy
  

• The U.S. Department of Energy said:
  Supplies of crude oil rose 4.7 million barrels last week to 350.8 million
  Supplies of gasoline fell 2.6 million barrels
  Supplies of heating oil fell 2.1 million barrels.
  Refinery use fell from 83.5% to 81.6%
  Gasoline demand rose 0.1% YoY
  Distillate demand fell 1.1% YoY
  

• Ruth Madoff, the wife of Bernard Madoff, withdrew $15.5 million from a Madoff brokerage firm before her husband's arrest.

Geithner Says Bank-Rescue Plans May Reach $2 Trillion (Update1)
“Instead of catalyzing recovery, the financial system is working against recovery,” Geithner said in unveiling the Obama administration’s overhaul of the government’s financial-bailout plans in Washington today. “At the same time, the recession is putting greater pressure on banks. This is a dangerous dynamic, and we need to arrest it.”

Quick Overview

• Japan's consumer confidence improved from 26.2 to 26.4
  

• Australia’s business confidence fell from -20 to -32
  

• The USDA estimates U.S. 2008-2009 ending stocks of:
  Corn unchanged at 1.790 billion bushels.
  Soybeans lowered from 225 to 210 million bushels.
  Wheat unchanged at 655 million bushels.
  Sugar was reduced from 1.072 to 1.066 million tons.
  Cotton was raised from 6.90 to 7.70 million bales.
  

• The USDA estimates 2008-2009 ending stocks of:
  Corn was raised from 136 to 137 million tons.
  Soybeans were reduced from 54 to 50 million tons.
  Wheat was raised from 148 to 150 million tons.
  Cotton was raised from 59 to 62 million tons.
  
  

• The USDA lowered 2009 beef production estimate from 26.54 to 26.11 million pounds
  

• The USDA reduced its estimate of pork production from 23.035 to 22.980 million pounds
  

• The USDA lowered its estimate of the 2008-2009 Florida orange crop from 162 to 158 million boxes and juice yield from 1.62 to 1.61 gallons per box.
  
  
  
  

Quick Overview

• Canada’s housing starts fell 11%.
  

• Japan's machinery orders fell 1.7% in December.
  

• The International Coffee Organization increased its estimate of 2008-2009 world production from 132.5 to 133.4 million bags.

Bond market calls Fed's bluff as global economy falls apart
The Fed has stepped into the breach, up to a point. It has bought $350bn of commercial paper, and begun to buy $600bn of mortgage bonds. That helps. But still it recoils from buying Treasuries, perhaps fearing that any move to "monetise" Washington's deficit starts a slippery slope towards an Argentine fate. Or perhaps Bernanke doesn't believe his own assurances that the Fed can extract itself easily from emergency policies when the cycle turns.

Quick Overview

• U.S. unemployment rose from 7.2% to 7.6% in January -- the highest rate in 16 years.
  
  

• Canada’s unemployment rate rose from 6.6% to 7.2% in
  

• The U.K.'s manufacturing output fell 2.2%.

China Declares Highest Level of Drought Emergency (Update2
(Bloomberg) -- China, the world’s largest grain producer, raised its drought emergency alert to level one, the highest class, for the first time, as dry weather threatened crops, livestock and rural incomes.

Cheap Crops Won’t Last, Credit Suisse Says: ..corn futures on the Chicago Board of Trade, adjusted for inflation, are 32 percent below their monthly average price since 1972. Corn fell to an 18-month low on the CBOT in December. Soybeans futures are 27 percent cheaper than their monthly inflation-adjusted average, and wheat is at a 25 percent discount.

Let’s hope policy-makers have learnt the lessons of the Great Depression
Chapter one: debt-fuelled consumer binge. Chapter two: stock market slump. Chapter three: credit crunch. Chapter four: trade war. Chapter five: well, let's not go there. History does not have to repeat itself, despite its rhymes. Extremism and war concluded the slump of 70 years ago, but they needn't this time.

Quick Overview

• U.S jobless claims were up 35,000 last week to 626,000
  

• U.S. productivity rose 3.2% in the fourth quarter, more than expected.
  

• (Bloomberg) -- Moody’s Investors Service is reviewing the ratings of $302.6 billion in commercial mortgage-backed securities as real-estate values drop and property owners fall behind on payments.

• U.S. Unit labor costs rose 1.8% in the fourth quarter, less than expected.
  

• U.S. factory orders fell 3.9% in December,
  

• England reduced its interest rate from 1.5% to a record low 1.0%
  

• The European Central Bank kept its interest rate unchanged at 2.0%,
  

• The USDA estimates Argentina's soybean crop at 42.5 million tons, down from the January 12th estimate of 49.5 million tons.
  

• Brazil estimates the upcoming coffee crop at 39.4 million bags.

• (Reuters) - The U.S. government has collected more than $271 million in dividends from ownership stakes in American banks.

• Sales in China's auto industry exceeded the U.S. for the first time last month.
  
  

• BHP Billiton said build-up of iron ore stockpiles in China that prompted suppliers to defer shipments last year is ending – causing ore shipments to rise, one broker said.
  
  

Quick Overview

• The Institute of Supply Management's index of services rose from 40.1 to 42.9 in January
  

• Retail sales in the Euro area fell 1.6% YoY
  

• Services in the U.K. rose from 40.2 to 42.5
  

• Australia’s retail sales rose 3.8% in December.
  

• The U.S. Department of Energy said:
  Supplies of crude oil rose 7.2 million barrels to 346.1 million barrels
  Supplies of gasoline rose 300,000 barrels
  Supplies of heating oil rose 1.4 million barrels.
  Refinery use rose from 82.5% to 83.5% of capacity last
  Gasoline demand fell 0.5% YoY
  Distillate demand fell 3.7% YoY

• Central Florida is under a hard freeze warning.
  

• Bloomberg reported that India, the biggest maker of sugar after Brazil, produced 9.5 million metric tons in the four months through January, down 20% YoY as farmers harvested less cane
  

Obama's Wars
By BILL MOYERS
The bombing of civilians from the sky is an old and questionable practice, argued over since the moment the military began to fly. It was deliberate strategy in World Wars I and II. American presidents approved it in Korea and extensively in Vietnam, again in the first Gulf War, then in Bosnia and Kosovo, and six years ago during the campaign of "shock and awe" over Iraq.

Quick Overview

• U.S. pending home sales rose 6.3% in December, stronger than expected. (Is the housing sector beginning to show signs of turning the corner ?)
  

• (Bloomberg) -- A record 19 million U.S. houses stood empty at the end of 2008 as banks seized homes faster than they could sell them and prices continued to fall.
  
  

• Australia reduced its interest rate from 4.25% to 3.25%,
  

• Industrial producer prices in the Euro area fell 1.3% MoM.
  

• (Spiegel)... the US Senate is debating a 'Buy American' provision in its economic stimulus package. The European Union fears the US is trying to seal off its market -- and is using its diplomatic arsenal in a bid to stop the move.
  

• Temperatures are expected to fall below freezing tomorrow morning in parts of northern and central Florida.
  

• Merck and Schering Plough, as well as the homebuilder D.R. Horton posted better-than-expected earnings.
  

• India announced approval for duty free imports of raw sugar.

• Ford sales dropped 39% in January, Toyota sales fell 31.7%, Volkswagen sales declined 11.6%, and Mercedes reported a 35.5% drop.

• (Bloomberg) -- China’s central bank may become less aggressive in cutting interest rates as lending surges and the world’s third-biggest economy shows signs of bottoming out, Deutsche Bank AG said.
  
  

• Indonesia cut interest rates to 8.25% from 8.75%

• Global corporate debt issuance recovered to levels more in keeping with boom times in January with buyers found for around 246bn of company bonds.
  

Quick Overview

• U.S. personal incomes fell 0.2% in December while spending fell 1.0%.
  

• U.S. construction fell 1.4% MoM and 5.1% YoY.
  
• The Institute of Supply Management's manufacturing index rose from 32.9 to 35.6
  

• USDA said that there were 94.49 million head of cattle in the U.S. on January 1st, down 1.6% YoY
  

• Manufacturing in the U.K. increased from 34.9 to 35.8 in January.
  

• South Korea’s exports fell by a record 32.8% in January.
  

• Chinese Premier Wen Jiabao said on Sunday he saw signs of recovery in the final days of 2008.
  

• China’s government announced that more than one in seven rural migrant workers have been laid off.