Quick Overview

• Executives of 10 major corporations, urged Bush to support mandatory reductions in climate-changing pollution and establish reductions targets.
  

• The USDA said that there were 440 million pounds of frozen pork in storage on December 31st, up 3% YoY. Bellies totaled 40.0 million pounds, down 17 % YoY.
  

• The USDA said that, as of December 31st, there were 678 million pounds of frozen orange juice concentrate in storage, down 35% YoY.

Coin shortage could turn pennies to nickels
Sharply rising prices of metals such as copper and nickel have meant the face value of pennies and nickels are worth less than the material that they are made of, increasing the risk that speculators could melt the coins and sell them for a profit.

US Army officer barred from disputing legality of Iraq war at court-martial
A US military judge ruled Tuesday that 1st Lt. Ehren Watada, a US Army officer who refused deployment to Iraq because he felt the war is 'unlawful,' cannot argue that point in his upcoming court-martial. Lt. Col. John Head further ruled that Watada may not raise a free speech defense, as soldiers do not enjoy the same constitutional rights as civilians.

Quick Overview

• U.S. consumer prices rose 0.5% in December and 2.6% YoY. Excluding food and energy, prices rose 0.2% in December and 2.5% YoY.
  

• U.S. new housing starts jumped 4.5% in December as builders took advantage of warmer weather, the Commerce Department said Thursday. For all of 2006, housing starts were down 13%.
  

• The Philadelphia Federal Reserve's regional index of manufacturing rose from -2.3 to +8.3 in January, more than expected.
  

• The Bank of Japan keep interest rate unchanged at .25%.
  

• U.S. Labor jobless claims were down 8,000 at 290,000, the lowest in eleven months.
  

• The U.S. Department of Energy said that:
  Supplies of crude oil were up 6.8 million barrels to 321.5 million barrels.
  Supplies of unleaded gasoline were up 3.5 million barrels
  Supplies of heating oil were up 400,000 barrels.
  Supplies of underground natural gas were down 89 billion cubic to 2.936 trillion cubic feet.
  

Quick Overview

• U.S. industrial production rose 0.4% in December and 4.0% in 2006
  
  

• U.S. Capacity utilization out at 81.8%.
  
  

• The producer price index rose 0.9% in December and 1.1% YoY. Excluding food and energy, prices were up 0.2% and up 2.0% YoY.
  
  

• Foreign purchases of long-term U.S. securities totaled $107.4 billion while U.S. purchases of foreign securities totaled $39.1 billion.
  
  

• YoY Consumer prices in the Euro zone were up 1.9% in December.
  
  

• U.K.’s unemployment rate out at 5.5%.
  

Iran, Iraq to jointly establish shipping company
Tehran, Jan 16, IRNA Iran-Iraq-Shipping Managing Director of Val fajr shipping company Lotfollah Saeedi said on Tuesday that the Islamic Republic of Iran and Iraq signed a letter of understanding on establishing a joint shipping company.

Quick Overview

• The New York Federal Reserve's regional index of manufacturing dropped from 22.19 to 9.13 in January, weaker than expected.
  

• The International Coffee Organization expects 07_08 global coffee production at 110.5 million bags and demand at 119 million bags.
  Green Coffee Association said U.S. coffee stocks were at 4.987 million bags, down 59,646 bags in December.
  

• YoY Consumer prices in the U.K. were up 3.0%.
  

• The yen fell to a new low against the dollar after a report suggested the Bank of Japan was unlikely to raise rates at its meeting.

• YoY November air cargo shipments rose 2.9% , the Air Transport Association said.

Nomads Beware!
A make-or-break speech by a beleagured American president is usually preceded by a demonstration of American might somewhere on the planet and the run-up to Bush’s address Wednesday night was no exception. The AC-130 U.S. gunship that massacred a convoy of fleeing Islamists on Somalia’s southwestern border, apparently along with dozens of nomads, their families and livestock, was deployed on its mission on Sunday, to make timely newspaper headlines indicative of Bush’s determination to strike at terror wherever it may lurk. Moral to nomads: when the US president schedules a speech, don’t herd, don’t go to wedding parties, head for the nearest cave.

Less Than Zero
All this, again, adds up to nothing. But if we look at the President's proposal more carefully, we find it actually amounts to less than zero. It hints at actions that may turn a mere debacle into disaster on a truly historic scale.

Bush's tough tactics are a 'declaration of war' on Iran
But if the US is preparing to confront Iran militarily - which some top military officials in Israel are reportedly recommending - the Bush administration will find itself involved in conflicts on four fronts.

Quick Overview

• U.S. Retail sales rose 0.9% in December, more than expected.
  

• India's Nov industrial production rose 14.4% YoY.
  

• Chinese GDP rose to 10.5% from 10.4% QoQ.
  

• The USDA's 2006-2007 U.S. ending stocks estimate for:
  Corn was reduced from 935 to 752 million bushels. (stocks/usage 6%, lowest since 1975)
  Soybeans were increased from 565 to 575 million bushels. (stocks/usage 19%)
  Wheat was increased from 438 to 472 million bushels.
  Sugar was reduced from 1.981 to 1.801 million tons.
  Cotton was increased from 6.30 to 7.10 million bales.
  

• The USDA's 2006-2007 world ending stocks estimate for:
  Corn was reduced from 93 to 86 million tons. (stocks/usage 11.9%)
  Soybeans increased to 56 million tons. (stocks/usage 25%)
  Wheat was increased from 121 to 122 million tons.
  Cotton was increased slightly to 52 million tons.
  

• The USDA estimate for the 2006-2007 Florida orange crop is 140 million boxes (unchanged) and a projected juice yield of 1.58 million gallons a box .
  

Quick Overview

• U.S. Jobless claims were down 26,000 to 299,000.
  

• The DoE said that supplies of natural gas were down 49 billion cubic feet to 3.025 trillion cubic feet
  

• The Bank of England today surprised the market with a 25 bp hike in the base rate to 5.25%. The market consensus was for an unchanged policy.
  

• Australia’s unemployment rate stayed at 4.6%.
  

• The European Central Bank kept its interest rate unchanged at 3.50%.
  

• Germany's real GDP was up 2.5% in 2006.
  

• Japan's index of leading indicators dropped from 54.5% to 20.0% in November, indicative of economic slowing ahead.
  

War With Syria and Iran = Peace With Iraq?
Speaking about the two countries tonight, the president said that the United States wiill "seek out and destroy" those who are providing material support to our enemies.
It is only a threat. But it is a far cry from the diplomatic proposals floated just last month for making Syria and Iran part of the solution. Can the president really be saying that we are willing to risk war with the two countries, and even attack elements inside them, to achieve peace in Iraq?

Quick Overview

• The U.S. trade deficit narrowed in November to its smallest level since July 2005. Exports were up 0.9% in November to $124.8 billion while imports were up 0.3% at $183.0 billion,
  

• The U.S. Department of Energy said that:
  Supplies of crude oil supplies were down 5.0 million barrels at 314.7 million barrels.
  Supplies of gasoline were up 3.8 million barrels
  Supplies of heating oil supplies were up 2.1 million barrels.
  

• The National Climatic Data Center said 2006 was the warmest year on record in the U.S. and the sixth warmest worldwide.
  
  

Bush Lifts Alaska Oil, Gas Drilling Ban
There are believed to be 200 million barrels of oil and 5 trillion cubic feet of natural gas beneath the bay's federal waters three miles to 200 miles from shore. The Interior Department last year estimated energy development could produce up to 11,500 jobs and new tax revenue for the state.
But the area also is known for its fisheries with huge annual catches of salmon, cod, red king crab, halibut and huge schools of herring.

Quick Overview

• Australian retail sails rose 0.2% in November, less than expected
  

• Bush lifted a ban Tuesday on oil and gas drilling in Alaska's Bristol Bay, an area known for its endangered whales and the world's largest run of sockeye salmon.
  
  

• The ABC News and Washington Post Consumer Comfort Index fell to -5 in the week ending Jan. 7 from -3 the previous week.
  
  

• The U.S. Department of Energy expects world petroleum demand to increase 1.5 million barrels a day in 2007 to 86.3 million barrels a day. They expect world production to increase 1.1 million barrels a day to 85.8 million barrels a day.
  
  
  

• The Chicago Board of Trade announced plans on Tuesday to launch derivatives based on the $5,000bn US commercial property market.
  
  

• For generations Vito Chiesa's family has grown peaches for canning, but the Central California farmer plans to bulldoze his entire orchard if he can't get enough workers to handpick the fruit.

Quick Overview

• Japanese Finance Minister Koji Omi said domestic consumption should rise in Japan in a tight labor market and that he believes Japan is no longer experiencing deflation.
  
  

• There is talk that OPEC may be planning to carry out another cut in production levels after last week's drop in the price of crude .
  

• The Cotton Advisory Council predicted that world ending stocks of cotton will be down 4 million bales in 2007-2008 to 48 million bales.

• Germany's cocoa grind totaled 322,232 tons in 06, up 30% YoY.
  

U.S. consumer credit rises $12.33 bln in November
Consumer credit rose by a 6.23 percent annual rate to $2.390 trillion in November

Quick Overview

• U.S. Payrolls rose jumped by 167,000 in December and the unemployment rate held at 4.5%, the Labor Department said Friday.
  
  

• November air cargo shipments jumped 2.9% YoY.
  
  

• China's central bank raised the bank reserve requirement to 9.5% from 9.0% in another attempt to slow bank lending.
  
  

• The unemployment rate in the Euro area improved from 7.7% to 7.6% in November, the lowest in 13 years.
  
  

• A new US Senate Bill to boost ethanol was introduced Thursday. The bill calls for the oil industry to blend 60 billion gallons of ethanol and biodiesel annually in motor vehicle fuel by 2030. This would be a huge increase from current Energy Policy Act of 2005 that requires 7.5 billion gallons of ethanol and biodiesel to be blended in the fuel supply by 2012.
  
  

• The DoE said that underground supplies of natural gas were down 47 billion cubic feet to 3.074 trillion cubic feet.

Quick Overview

• U.S. factory orders rose 0.9% in November. Excluding transportation, orders were down 0.5%.
  

• The Institute of Supply Management's U.S. index of services dropped from 58.9 to 57.1
  

• US jobless claims were up 10,000 to 329,000.
  
  

• The U.S. Department of Energy said that:
  Supplies of crude oil supplies were down 1.3 million barrels to 319.7 million barrels.
  Supplies of unleaded gasoline were up 5.6 million barrels
  Supplies of heating oil were up 1.0 million barrels.
  The U.S. produced 333,000 barrels of ethanol per day in October. The U.S. is expected to produce 4.9 billion gallons of ethanol in 2006, up 25% YoY
  

• Services Index in the U.K. increased from 59.8 to 60.6, the highest reading in almost ten years.
  

Economist Warns on Ethanol Corn Demand
According to the Earth Policy Institute's data, U.S. ethanol distilleries now online or in the works will pull an estimated 139 million tons -- or 5.5 billion bushels -- of corn from the 2008 corn harvest to produce fuel for automobiles.
That's based on 116 existing ethanol plants, 79 under construction, 11 undergoing expansion and 200 plants in the planning stages expected to be running by corn harvest time in September 2008.

Bush says feds can open mail without warrant
Bush asserted the new authority Dec. 20 after signing legislation that overhauls some postal regulations. He then issued a "signing statement" that declared his right to open mail under emergency conditions, contrary to existing law and contradicting the bill he had just signed, according to experts who have reviewed it.

Quick Overview

• The Institute of Supply Management's index of U.S. manufacturing increased from 49.5 to 51.4 in December, more than expected.
  

• U.S. Federal Reserve officials agreed at their December meeting inflation was the main concern, but some felt the "subdued tone" of economic data meant risks to growth had increased, minutes released on Wednesday showed.
  

• U.S. Construction spending in November was down 0.2% from October's pace. In the first eleven months of 2006, construction spending was up 5.4% YoY.
  

• Germany's unemployment rate was unchanged at 9.6% in December.
  

• U.S. Treasury Secretary Henry Paulson supported a White House plan to balance the budget by 2012, saying it could be accomplished with low taxes, strong job and productivity growth and restrained spending.

Quick Overview

• U.S. Consumer confidence rose from 105.3 to 109.0, an eight-month high, the New York-based Conference Board reported.
  
  

• The National Association of Realtors said that U.S. existing home sales were at an annual rate of 6.28 million units in November, up .6% from October's pace, but still down 10.7% YoY.
  

• The Chicago Purchasing Managers' index rose from 49.9 to 52.4 in December, more than expected.
  
  

• The U.S. Department of Energy said that:
  Supplies of crude oil were down 8.1 million barrels last week to 321.0 million barrels.
  Supplies of unleaded gasoline were up 3.0 million barrels
  Supplies of heating oil were down 800,000 barrels.
  

• Japan's Nov industrial production rose 0.7% MoM, increasing the chances for a BOJ rate hike in January by 25 bp to 0.50%.
  
  

• China's GDP may expand at 10.5% in 2007, according to the National Bureau of Statistics.
  
  

• Taiwan's central bank raised its benchmark interest rate by one-eighth percentage point to 2.75%.
  
  

• American Trucking Associations’ seasonally adjusted truck tonnage index dropped 3.6% in November, following its 1.9% drop in October,

Quick Overview

• Japans Jiji news agency reported late Tuesday the Bank of Japan is likely to discuss raising rates to 0.5 percent next month.
  
  

• Retail sales in Japan were up 0.1% in November.
  

• The Mortgage Bankers Association said U.S. mortgage applications plummeted last week to the lowest level in nearly five months.
  
  

• New home sales jumped 3.4% in November, the Commerce Department said Wednesday. YoY sales are down 15.3%
  
  

• The United Arab Emirates' has decided to raise the share of Euro holdings in its reserves to 10% from 2% over the next six to nine months.
  
  

• Tin rose nearly 4% on the LME because of continuing supply concerns in Indonesia.
  
  

• The USDA said there were 62.149 million hogs and pigs in U.S. inventory on December 1st, up 1.1% YoY.
  

Quick Overview

• Personal income increased $33.8 billion, or 0.3 %, and disposable personal income increased $27.0 billion, or 0.3 %, in November. Consumer spending was up 0.5%, the most in four months.
  
  

• U.S. Durable goods orders were up 1.9% in November. Excluding transportation, orders were down 1.1%, more than expected.
  

• The University of Michigan's consumer sentiment index dropped from 92.1 to 91.7 in December, better than expected.
  
  

• The confidence of American consumers slipped in the latest week, with buyers "shopped out" by the Christmas holiday, ABC News and The Washington Post said on Tuesday
  

• The Richmond Fed index of regional manufacturing fell from +7 to -6 in December, more than expected.
  

• Sweden’s November Producer Price Index was up 0.1% MoM and 3.7% YoY
  

• China's central bank expects the economy to grow 9.8% in 2007, down from 10.5% this year.
  
  

• UK’s Q3 GDP +was up 0.7% QoQ and up 2.9% YoY
  
  

• Japan’s unemployment rate fell from 4.1% to 4.0%, the lowest in eight years, household spending was down 0.7% YoY. Japan’s personal consumption, which makes up 55 percent of the economy, may appear weak at first glance, but a closer look at economic indicators suggests the outlook is not so bad. The minutes of the Bank of Japan meeting on Nov 15-16 contained some hawkish comments that supported the view the BOJ is leaning toward further tightening over the near-term.
  
  
  

• Canadian officials are proposing a C$345 million program requiring biofuel content of 5% in gasoline by 2010 and 2% in diesel fuel and heating oil by 2012, the Associated Press reported.
  
  

• The USDA said there were 11.973 million head of cattle on feed on December 1st, up 2.1% YoY
  
  
  

Quick Overview

• U.S. GDP rose 2.0% in the third quarter of 2006, slightly less than expected. YoY real GDP was up 3.0%. Consumer spending rose 2.8% QoQ.
  

• U.S. leading indicators increased 0.1% in November.
  

• The Philadelphia Federal Reserve's index of regional activity dropped from 5.1 to -4.3 in December.
  

• U.S. jobless claims were up 9,000 last week to 315,000.
  

• Canada's GDP was unchanged in October and up 1.6% YoY.
  

• GDP in the U.K. was up 2.9% QoQ
  

• Argentina's November trade surplus jumped nearly 54 percent YoY, more than economists had expected, as exports surged.
  

• New Zealand's GDP was up 0.3% QoQ and up 1.3% YoY.
  

• The USDA said that there were 30.9 million pounds of frozen bellies in storage as of November 30th, up 8% YoY. Frozen pork supplies totaled 464.2 million pounds, up 6% YoY.
  

• The USDA said that there were 649.9 million pounds of frozen orange juice in storage on November 30th, down 37% YoY.
  

Want To Feel Rich? by Bill Bonner
Being "rich" is easier than we think. You just have to get away from Miami or Los Angeles. If you live in some countries, even an income of $5,000 a year will make you feel like a relatively rich man. In fact, a new study by the United Nations says that a net wealth of $2,200 will put you in the richest half of the world's people. If you can scrape together $61,000 in net assets, you are in the top 10%.
What does it take to be in the top 1%? Just $500,000.

Quick Overview

• The U.S. Labor Department said that producer prices were up 2.0% in November, the biggest gain since 1974. YoY producer prices were up 0.9% and the core rate of producer prices was up 1.8% YoY.
  

• U.S. Housing starts came in at an annual rate of 1.588 million units in November, up 6.7% from October's pace. So far in 2006 housing starts are down 12.5% YoY.
  
  

• Confidence of American consumers held at a 2006 high last week, ABC News and The Washington Post said on Tuesday.
  

• Canada's consumer price index was up 1.4% YoY.
  

• German business confidence increased from 106.8 to 108.7
  

• The Bank of Japan met and kept its interest rate unchanged at 0.25%, as expected.
  

Goldman building market for home price derivatives
Property derivatives have the potential to become big on Wall Street. The value of U.S. housing, at $22 trillion as of March, exceeds the $16-trillion value of U.S. equities and is not much smaller than the $26-trillion market for U.S. debt.

Quick Overview

• The huge U.S. current account deficit widened in the third quarter to a record $225.6 billion
  

• Canada's composite index of leading indicators was up 0.5%.
  

• The Green Coffee Association said that U.S. coffee stocks totaled 5.05 million bags, up 3.5% YoY.
  

• The International Coffee Organization said that the 2007-2008 coffee crop is expected to have a world production deficit as large as the 6.6 million ton deficit of 2005-2006.
  

Pot is called biggest cash crop
For years, activists in the marijuana legalization movement have claimed that cannabis is America's biggest cash crop. Now they're citing government statistics to prove it.
A report released today by a marijuana public policy analyst contends that the market value of pot produced in the U.S. exceeds $35 billion — far more than the crop value of such heartland staples as corn, soybeans and hay, which are the top three legal cash crops.

Even if they're off, cellphones allow FBI to listen in

"This is a kind of surveillance we've never really seen before. The government can and will exploit whatever technology is available to achieve their surveillance goals. This is of particular concern, considering the proliferation of microphones and cameras in the products we own," said Kevin Bankston, a lawyer for the Electronic Frontier Foundation.

Bush 'Privacy Board' Just a Gag The three-hour meeting, held at Georgetown University, quickly established that the panel would be something less than a fierce watchdog of civil liberties. Instead, members all but said they view their job as helping Americans learn to relax and love warrantless surveillance.

McCain Bill Is Lethal Injection For Internet Freedom
Exploits fear of sexual predators and basic misunderstanding of Internet to attack blogs critical of the warmongering agenda he fronts for.

Quick Overview

• U.S. Consumer prices were unchanged in November and up 2.0% YoY, less than expected. Excluding food and energy costs, prices were up 2.6% YoY.
  

• Foreign purchases of U.S. securities totaled $102.0 billion in October while U.S. purchases of foreign long-term securities totaled $19.7 billion.
  

• U.S. Industrial production rose 0.2% in November, up from October's 0.5% drop.
  

• YoY Consumer prices in the EU-12 were up 1.9% in November
  

• The White House has approved a $468.9 billion Pentagon budget for 08, a six-percent increase YoY.
  
  

• Japan's tankan survey, increased from +24 to +25 in September, the highest in two years
  

• Brazil's government estimates the 2007-2008 coffee crop at 31.7 million bags, less than expected. They said the 2006-2007 coffee crop totaled 42.5 million bags, 4 million bags less than the USDA's estimate.
  

• Brazil's Association for Citrus Exporters said Brazil's exports of frozen orange juice in the first eleven months of 2006 were down 9% YoY.
  

• Gold futures dropped about $12 an ounce, silver lost 7% and copper prices dropped to a six-month low.

Diplomat's suppressed document lays bare the lies behind Iraq war

He also reveals that British officials warned US diplomats that bringing down the Iraqi dictator would lead to the chaos the world has since witnessed. "I remember on several occasions the UK team stating this view in terms during our discussions with the US (who agreed)," he said.

Quick Overview

• Argentina's economy expanded 8.7 percent in the third quarter compared with the year-earlier period, fueled by higher consumer spending and private investment.
  
  

• The price of goods imported to the United States rose 0.2% in November after falling more than 2% in the previous two months, the Labor Department said Thursday.
  
  

• U.S. Jobless claims were down 20,000 to 304,000, less than expected.
  
  

• U.K. Retail sales up 0.3% in November, more than expected.
  

• EU-12 Labor costs up 2.0% YoY.
  

• Germany's Ifo economic institute predicts the economy will grow 2.5% in 2006 and 1.9% in 2007.
  

• Canada's manufacturing shipments down 0.1% MoM.
  

• Japan's top financial diplomat does not expect the yen to weaken further due to any domestic reasons as the economy is performing steadily.
  
  

• The U.S. Department of Energy said that underground supplies of natural gas were down 168 billion cubic feet last week to 3.238 trillion cubic feet. YoY Supplies are up 8%.
  

• OPEC oil ministers said Thursday they will cut production by a half-million barrels a day starting Feb. 1, a 1.9% cut, Bloomberg reported.

Americans See Widening Rich-Poor Income Gap as Cause for Alarm
Almost three-quarters of Americans believe inequality is a major issue, versus 24 percent who don't think so, according to a new Bloomberg/Los Angeles Times poll. Most of the concern is among Democrats and independent voters, though a majority of Republicans -- 55 percent -- also called the situation serious.

Quick Overview

• U.S. Retail sales were up 1.0% in November, more than expected. Excluding autos and gasoline, sales were up 0.9%.
  

• China's economy may have modest downslide after 2006, with its GDP growth to slow from the current 10.4 percent to 9.6 percent in 2007 and 8.7 percent in 2008, the World Bank said.
  

• The U.S. Department of Energy said that:
  Supplies of crude oil were down 4.3 million barrels last week to 335.4 million barrels.
  Supplies of unleaded gasoline were down 100,000 barrels
  Supplies of heating oil supplies were down 700,000 barrels.
  

• U.K.'s Unemployment rate at 5.5% from 5.6% the previous month.
  

• Russia is preparing to cut off natural gas supplies to neighboring Belarus and Georgia unless the two former Soviet republics agree by the year-end to pay much higher prices in 2007.
  
  

• Shanghai Baosteel, China's leading steel manufacturer, has produced X120, the world's strongest gas transmission pipeline steel, sources with the company said on Tuesday.
  
  
  

• Executives predict 'talent war' as companies compete for scarce Chinese-speaking graduates.

Quick Overview

• The Federal Reserve left the federal funds rate at 5.25%, noting the economy has slowed and is hurt by "substantial cooling" in the housing market. The statement, left open the possibility the central bank might increase rates if inflation speeds up.
  
  

• US Trade Balance at -$58.9B vs. -$63.0B expected.
  
  

• U.S. Federal budget deficit at $75.6 billion in November, down from $83.1 billion YoY.
  
  

• Chinas November retail sales YoY rose 14.1% to 682.2 bln Yuan.
  
  

• Indian Industrial Production up 6.2% YoY
  
  

• Euro Zone Economic Sentiment at -3.0 vs. -8.5 expected.
  
  

• Italian Industrial Production MoM at 0.6% vs. 0.5% expected.
  
  

• UK CPI MoM at 0.3% vs. 0.2% expected.
  
  

• German Economic Sentiment at -19 vs. -25 expected.
  
  

• German Current Situation at 63.5 vs. 55.3 expected.
  
  

• Swedish CPI Underlying YoY at 1.3% vs. 1.2% expected.
  
  

• Cocoa stocks in Nybot warehouses rose 231,943 145-pound bags to total 4.04 million 145-pound bags.
  
  

• The number of trucks in use in the U.S. is down 0.6% in the third quarter, a sign expanding hauling capacity by carriers may have peaked.
  
  
  

ECB Warns of `Herd-Like' Mentality in Derivatives
Sales of CDOs jumped 73 percent to $446 billion this year from a year earlier, according to data compiled by JPMorgan Chase & Co. The market for credit derivatives is the fastest-growing part of the derivatives market, helping to spur record earnings for banks including New York-based Morgan Stanley and Goldman Sachs Group Inc.

Quick Overview

• U.S. Economic growth will slow and inflation will ease in 2007, with energy prices and a falling dollar posing the biggest risks to a pick-up in prices, a panel of Wall Street analysts forecast on Monday.
  
  

• The U.S. Census Bureau said that wholesale sales were down 0.5% in October while inventories were up 0.8%.
  
  
  

• China posted a trade surplus of 22.92 bln $ in November, down slightly from 23.83 bln in October, customs data showed. The trade surplus in the first 11 months was 156.52 bln $, up from 91 bln YoY.
  
  

• China's consumer price index rose 1.3 pct YoY, the National Bureau of Statistics said.
  
  
  

• Major oil-exporting countries have been moving away from dollar deposits to increase reserves in other currencies, including the Euro and the Japanese yen, the Bank for International Settlements has said. Dollar-denominated bank deposits by OPEC members decreased by 5.3 bln $ in the second quarter of 2006, while Euro-denominated deposits rose by 2.8 bln $ and yen deposits by 3.8 bln $.
  
  

• The National Association of Realtors expects U.S. existing home sales down 8.6% in 2006 and down 1.0% in 2007.
  
  

• Japanese Consumer Confidence for November out at 48.9 vs. 48.8 expected.
  

• French Industrial Production MoM for October out at -0.1% vs. 0.5% expected.
  

• Mexican stocks rose to an eighth straight record close on Monday
  
  

• Cocoa stocks in Nybot warehouses fell 3,978 145-pound bags to total 3.808 million bags.
  
  
  
  
  

• The USDA's 2006-2007 U.S. ending stocks estimate of:
  Corn was unchanged at 935 million bushels.
  Soybeans were unchanged at 565 million bushels.
  Wheat was increased from 418 to 438 million bushels.
  Sugar was increased from 1.87 to 1.98 million tons.
  Cotton was increased from 6.0 to 6.3 million bales.
  

• The USDA's 2006-2007 world ending stocks estimate of:
  Corn was increased from 90 to 93 million tons.
  Soybeans were increased from 55.2 to 55.7 million tons.
  Wheat was increased from 119 to 121 million tons.
  Cotton was increased from 51.0 to 51.5 million bales.
  

• The USDA increased its estimate of the Florida orange crop from 135 to 140 million boxes with a projected yield of 1.58 gallons a box at 42.0 degrees Brix.
  

• The Florida Department of Citrus said YoY inventories of frozen concentrated orange juice were down 40%.
  

From Reuters, Automatic Trading Linked to News Events Today, the Reuters Group begins selling two trading services that allow subscribers to set up automatic trading orders based on the news. They will give subscribers the ability to mine past and present Reuters news articles in real time and automatically buy, sell or hold a stock based on market-moving events.

Updates will resume December 10.

Farm Animals More Damaging To Climate Than Cars
It generates 65 percent of human-caused nitrous oxide, a gas that is 296 times more effective at trapping solar heat than carbon dioxide (CO2), the biggest greenhouse-gas by volume. Most of this pollution comes from manure.

Quick Overview

• The U.S. Commerce Department said that personal incomes were up 0.4% in October and consumer spending was up 0.2%.
  

• The U.S. Labor Department said that jobless claims were up 34,000 last week to 357,000, more than expected.
  

• The Chicago purchasing managers' index dropped from 53.5 to 49.9 in November, weaker than expected.
  

• Retail sales in Australia were up 0.8% in October.
  

• Canada's real GDP was up 0.4% QoQ and up 2.5% YoY.
  

• Real GDP in the EU-12 was up 0.5% QoQ and up 2.7% YoY.
  

• Real GDP in India was up 9.2% YoY
  

• U.S. Cotton mill use declined from an annual rate of 5.2 to 5.1 million bales in October.
  

Quick Overview

• QoQ U.S. GDP was up 2.2%, and up 3.0% YoY. Nominal GDP was up 6.0% YoY.
  

• Federal Reserve Chairman Bernanke said he expects moderate economic growth with lower inflation. The one risk of higher inflation, he warned, might come from tight labor supplies.
  

• The Federal Reserve's Beige Book said that most districts reported "continued moderate growth since the last report" and increased consumer spending.
  

• U.S. New home sales were at an annual rate of 1.004 million units in October, down 3.2% from September's pace and less than expected. YoY new home sales are down 18%.
  

• Brazil's central bank lowered its benchmark lending rate to 13.25% from 13.75%
  

• Japan's industrial production increased 1.6% in October, more than expected and a new record high.
  

• The U.S. Department of Energy said that:
  Supplies of crude oil were down 300,000 barrels to 340.8 million barrels.
  Supplies of unleaded gasoline were down 600,000 barrels
  Supplies of heating oil were down 1.1 million barrels.
  
  
  

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Quick Overview

• The OECD today cut its forecast for 2007 OECD-country GDP growth to +2.5% from +3.2% in 2006, which would be the weakest level since 2003.
  
  

• Durable goods orders posted their biggest decline since July 2000, falling 8.7% in October. Excluding transport, orders were down 1.7%
  
  

• U.S. Consumer confidence fell to 102.9 in November from a revised 105.1 last month, the New York-based Conference Board said Tuesday.
  
  

• The confidence of American consumers rose in the latest week to match its 2006 high and best since April 2002, just in time for the beginning of the holiday season, ABC News and The Washington Post said on Tuesday.
  
  

• The National Association of Realtors said U.S. existing home sales were at an annual rate of 6.24 million units in October, better than expected and up 0.5% from September's pace. The 3.85 million homes for sale in October represented a 7.4 month supply, the most in 13 years.
  

• The U.S. economy is not yet facing a generalized economic slowdown, despite cooling in the housing and automobile sectors, the International Monetary Fund's chief economist said on Tuesday.
  

• Retail sales in Japan were down 0.2% in October, more than expected.