Quick Overview

• Bank of Canada reverses liquidity move by tightening collateral requirements for financial institutions participating in special liquidity operations, says credit markets have settled down.
  

• Retail sales increased 2.9% in August, the International Council of Shopping Centers said, exceeding the group's forecast of 2.5%.
  

• The U.S. Labor Department said that jobless claims were down 19,000 last week to 318,000, less than expected.
  

• The Bank of England met and kept its interest rate unchanged at 5.75%, as expected.
  

• China increased reserve requirements for banks from 12.0% to 12.5% -- the seventh increase this year.
  

• Australia's unemployment rate was unchanged at 4.3% in August.
  

• The European Central Bank kept its interest rate unchanged at 4.0%, as expected.
  

• Lehman Brothers Holdings Inc. and National City Corp. said more than 2,000 workers will be laid off as the financial institutions scale back their struggling mortgage businesses.
  

• Manufacturing orders in Germany fell 7.1% in July, weaker than expected.
  
  

• The Labor Department said that non-farm productivity was up an annual rate of 2.6% in the second quarter of 2007, the best gain in almost two years. Unit labor costs were up an annual rate of 1.4% in the second quarter, less than expected.
  

• U.S. ethanol demand is at a record high of 443,000 barrels a day in June.
  U.S. ethanol production capacity is currently 6.7 billion gallons, rising to 6.6 billion gallons in 2009.
  

• The U.S. DOE said that:
  Supplies of crude oil fell 3.9 million barrels to 329.7 million barrels.
  Supplies of gasoline fell 1.5 million barrels.
  Supplies of heating oil rose 1.2 million barrels.
  Supplies of underground natural gas rose 36 billion cubic feet to 3.005 trillion cubic feet.
  U.S. refinery use rose from 90.3% to 92.1%
  Gasoline demand rose 0.5% YoY
  Distillate demand was unchanged YoY.
  

• Allendale expects the U.S. Department of Agriculture to raise its 2007/08 marketing year production estimates for corn, soybeans and wheat. The report is next Wednesady.
  FC Stone also sees a slight increase in corn and soybean production estimates.
  
  

• USDA Chief Economist Keith Collins says growing demand for ethanol is not only driving grain prices higher in the U.S., but around the world.