A special report on the sea
Troubled waters The evidence abounds. The fish that once seemed an inexhaustible source of food are now almost everywhere in decline: 90% of large predatory fish (the big ones such as tuna, swordfish and sharks) have gone, according to some scientists. In estuaries and coastal waters, 85% of the large whales have disappeared, and nearly 60% of the small ones. Many of the smaller fish are also in decline. Indeed, most familiar sea creatures, from albatrosses to walruses, from seals to oysters, have suffered huge losses.

Asia needs to fully wake up to the scale of the West's economic crisis
The defenders of this dead-end strategy are now coming up with astonishing proposals to put off the day of reckoning. Akio Mikuni, head of Japan's credit agency Mikuni, has called for a "Marshall Plan" to bail out America by cancelling $980bn of US Treasury bonds held by the Japanese state.

Quick Overview

• The Feds Yellen on Sunday urged "pulling out all the stops" by implementing a big fiscal stimulus program to turn around a possible long period of economic stagnation in the United States.
  

• The purchasing managers index published by China’s Federation of Logistics and Purchasing rose to 41.2 in December from the record low of 38.8 in November.
  

• The U.S. ISM index of manufacturing fell from 36.2 to 32.4 in December, the lowest level since 1980.
  
  

• Russia has shut off natural gas to Ukraine, saying that the country owes it $600 million for previous sales.
  

• Manufacturing activity in the Euro area fell from 35.6 to 33.9 in December,
  

• GDP in Singapore fell 2.6% YoY.
  

• Bloomberg reported that world’s largest iron ore consumer China may ask global iron ore majors to accept an 82% price cut for iron.
  

• According to SSY’s Australian Coal Port Congestion Index, average delays are now 9.93 days, the highest since June 2008. Congestion at Australia’s coal ports has contributed to the recent upward movement in freight rates.
  

• Japan’s factory output fell 8.1% in November -- the fastest pace in 55 years.

Happy Holidays!

(Updates resume Jan. 5)

Quick Overview

• Bush threw auto makers a $13.4 billion lifeline from the U.S. bank-bailout program.
  

• YoY Canada’s consumer prices rose 2.0% in November.
  

London Banker: “The market has failed, and officialdom is perpetuating that failure
The problem isn’t just money either, but how quickly the money is turned over.

Consumers Get Important New Credit Card Protections While praising the new protections, Consumers Union criticized the 18 month delay before consumers finally get relief.

Quick Overview

• U.S. jobless claims were down 21,000 to 554,000 last week
  

• The Philadelphia Federal Reserve's index of manufacturing improved from -39.3 to -32.9
  
  

• U.S. leading indicators fell 0.4% in November
  

• U.K. retail sales rose 0.3% MoM and 1.5% YoY
  

• (Bloomberg) -- The Bank of Japan cut its benchmark interest rate to 0.1 percent and introduced new ways of pumping money into the banking system to bolster the ailing economy.

• German business confidence (IFO) fell to its lowest level ever in December amid concerns of a prolonged recession.
  

• Canada’s retail sales fell 0.9% in October.
  Canada’s leading indicators fell 0.7% in November.
  

• (Bloomberg) -- General Electric Co.’s debt ratings outlook and those of its GE Capital finance arm were changed to negative from stable by Standard & Poor’s, reflecting concern earnings could deteriorate further than previously thought.
  

• Bush is looking at "orderly" bankruptcy as a way to deal with the U.S. auto industry.

South African central bank gold sales dry up .. Demby also pointed out that demand for gold coins and bullion now exceeded supply by a huge margin as investors were seeking a safe haven from the prospective fallout in the wake of mammoth money supply creation by the United States government.

Quick Overview

• U.K. unemployment rate was 6.0, up from 5.8% MoM.
  

• Construction output in the Euro area rose 0.1% in October, but down 4.0 YoY
• YoY Consumer prices in the Euro area rose 2.1%
  

• Canada wholesale sales fell 1.8% in October
  

• Norway cut its interest rate from 4.75% to 3.00%
  

• OPEC will be cutting oil production by 2.2 million barrels a day as of January 1.
  

• The U.S. Department of Energy said:
  Supplies of crude oil rose 500,000 barrels to 321.3 million barrels.
  Supplies of gasoline rose 1.3 million barrels
  Supplies of heating oil supplies rose 600,000 barrels.
  Refinery use dropped from 87.4% to 84.1% of capacity
  Gasoline demand fell 2.7%
  Distillate demand fell 4.5%.
  

• Russia's central bank allowed the ruble to slide for the second time this week, speeding up the gradual depreciation policy
  
  

• French antitrust authorities ruled that Apple must allow other operators other than France Telecom to sell its iPhone, saying the exclusive deal was unfair for competition.
  

• Morgan Stanley reported a wider-than-expected $2.2 billion quarterly loss.
  

Quick Overview

• The Fed cut the fed funds rate from 1.00% to .125%, and signaled they will keep rates "exceptionally low" for some time amid rapidly waning price pressures.
  


• U.S. housing starts were at a record (since 1959) low annual rate of 625,000 in November, down 18.9% MoM.
  Building permits fell 15.6% MoM.
  


• The U.S. consumer price index fell 1.7% in November rose 1.1% YoY
  


• YoY U.K. consumer prices rose 4.1% in November
  


• Manufacturing and services index in the Euro area fell from 38.9 to 38.3
  


• China’s November steel output fell by 12.4% YoY

Bush Shoe Tosser Signed By The Seattle Mariners SEATTLE, Washington - The Seattle Mariners who in 2008, had the worst record in the American League (61-101) have just signed Muntazer al-Zaidi to a three year, $3 million pitching contract.

Our Updated Take on Gold Prices
The last era of any significant period of deflation was in the 1930s. Although gold was fixed for a long time at $20.67 per ounce, in 1934 a massive devaluation of the U.S. dollar saw its fixed price jump to $35 per ounce. During this period of entrenched deflation, and in spite of the fixed price of the metal, gold proxies saw a dramatic rise in price. The NYSE-listed shares of Homestake Mining Company rose from about $4 to $500 from 1929 to 1935; the company operated for some 120 years until its flagship Homestake mine in Lead, S.D., ran out of economic reserves a few years ago and the company ceased to exist.

Quick Overview

• U.S. industrial production fell 0.6% in November and 5.5% YoY
  

• Japan's Tankan fell from -3 to -24
  

• China's industrial output rose 5.4% YoY
  China’s November iron ore imports rose 6% MoM
  

• The Supreme Court ruled that cigarette companies can be sued by smokers who claim they were deceived by advertisements promoting “light” cigarettes.
  

Madoff and the Global Economy
The big unanswered question, for years, was why this money flow persisted. Why the heck were foreign investors willing to lend the U.S. such large amounts of money on such good terms? Economists and journalists spun out hypothesis after hypothesis (we'll see more below), but there was no agreement on why.

At Last, A Date
Around 2020. That casts the issue in quite a different light. Mr Birol’s date, if correct, gives us about 11 years to prepare. If the Hirsch report is right, we have already missed the boat. Birol says we need a “global energy revolution” to avoid an oil crunch, including (disastrously for the environment) a massive global drive to exploit unconventional oils, such as the Canadian tar sands. But nothing on this scale has yet happened, and Hirsch suggests that even if it began today, the necessary investments and infrastructure changes could not be made in time. Fatih Birol told me “I think time is not on our side here.”

Shipping charter rates soar One of the world’s key shipping markets has begun to recover from a slump, with a revival in Chinese demand for iron ore and coal pushing some average charter prices up almost threefold in the past week.

Fear triggers gold shortage, drives US treasury yields below zero
The investor search for a safe places to store wealth as the financial crisis shakes faith in the system has caused extraordinary moves in global markets over recent days, driving the yield on 3-month US Treasuries below zero and causing a rush for physical holdings of gold

Capitalist Fools by Prof. Joseph E. Stiglitz
Behind the debate over remaking U.S. financial policy will be a debate over who’s to blame. It’s crucial to get the history right, writes a Nobel-laureate economist, identifying five key mistakes—under Reagan, Clinton, and Bush II—and one national delusion.

Quick Overview

• U.S. retail sales fell 1.8% in November
  

• U.S. producer price index fell 2.2% in November and up 0.4% YoY
  

• The University of Michigan's index of consumer sentiment rose from 55.3 to 59.1
  

• Industrial output in the Euro area fell 1.2% in October and 5.3% YoY
  

• The EU will spend 200 billion Euros, 1.5% of GDP, to help the economy.
  

• Japan will spend 23 trillion yen ($255 billion) to help the economy.
  

• Bush dropped his opposition to using the $700 billion bank bailout to provide help for U.S. automakers.

Quick Overview

• (Bloomberg) -- Senate negotiations for a U.S. automaker bailout plan collapsed, in a blow to General Motors Corp. and Chrysler LLC, which may run out of cash early next year.
  “It’s over with,” Majority Leader Harry Reid said.

• U.S. jobless claims rose 58,000 last week to 573,000, the most in 26 years.
  

• The U.S. trade deficit widened in October 1.1 % to $57.2 billion from a revised $56.6 billion in September
  

• Switzerland lowered its interest rate target from 1.00% to .50%.
  

• Korea reduced its interest rate from 4.0% to a record low 3.0%
  

• Australia's unemployment rate increased from 4.3% to 4.4%
  
  

• The USDA's 2008-2009 U.S. ending stocks estimate for:
  Corn was raised from 1.124 to 1.474 million bushels, more than expected.
  Soybeans unchanged at 205 million bushels.
  Wheat was raised from 603 to 623 million bushels.
  Sugar was raised from 907,000 to 961,000 tons.
  Cotton was raised from 6.2 to 7.1 million bales.
  

• The USDA's 2008-2009 world ending stocks estimate for:
  Corn was raised from 110 to 124 million tons.
  Soybeans unchanged at 54 million tons.
  Wheat was raised from 145 to 147 million tons.
  Cotton was raised from 57 to 59 million tons.
  

• USDA lowered its estimate of the 2008-2009 Florida orange juice crop from 166 to 165 million boxes. The projected juice yield was also reduced, from 1.59 to 1.58 gallons per box.
  

• India said war is no solution to stop Pakistan based militants from launching anti-India attacks.
  

Foreclosure Storm Will Hit U.S. in 2009 as Loan Changes Fail
Rising unemployment, expiring foreclosure moratoriums and state efforts that “run out of steam” will push monthly filings toward the record of more than 303,000 set in August, Sharga said. The number of homes that revert to lenders, the last stage of foreclosure and known as “real estate owned” or REO properties, will increase to 1 million from as many as 880,000 this year, he said.

Commodity crash tests faith in supercycle
There is no such thing as consensus in the commodity world, but most experts still think that the economic arrival of two billion people in Asia is a "game-changer" that will underpin prices for years to come..

Quick Overview

• U.S. wholesale sales totaled $377.4 billion in October, down 4.1% MoM, but up 2.7% YoY. Inventories fell 1.1%.

• U.S. foreclosure activity dipped 7% MoM, but jumped 28% YoY RealtyTrac said.
  

• YoY Chinese exports fell 2.2% in November
  

• The U.S. Department of Energy said:
  Supplies of crude oil rose 400,000 barrels to 320.8 million barrels.
  Supplies of gasoline rose 3.8 million barrels to 202.7 million barrels
  Supplies of heating oil rose 1.7 million barrels.
  Refinery use increased from 84.3% to 87.4% of capacity.
  Gasoline demand fell 3.2% YoY
  Distillate demand fell 4.0% YoY.
  

• Bloomberg reported that world’s largest iron ore consumer China may ask global iron ore majors to accept an 82% price cut for iron.
  

• Bloomberg reported that BHP Billiton Ltd shipped the least amount of iron ore from Australia in 9 months amid plunging demand from China.
  

• Rio Tinto is cutting 14,000 jobs.

• Chinas President Hu reiterated the government’s commitment to use all tools at its disposal to maintain economic growth at 8% in 2009.
  

• (Reuters) - A prominent team of U.S.-based researchers predicted 14 tropical storms in the 2009 Atlantic hurricane season on Wednesday and said seven would develop into hurricanes.
  

• The dividend yield on the S&P 500 is 3.48%. The yield on a 30-year U.S. bond is 3.16% -- 1958 was the last time that happened.

• China’s November iron ore imports rose by 6% MoM.
  China's producer price decelerated to an annual rise of 2%.
  

• American Iron & Steel Industries said US weekly raw steel production fell by 44% YoY
  

Q Ratio Signals ‘Horrific’ Market Bottom, CLSA Says (Update1)
At the end of the four largest U.S. bear markets in 1921, 1932, 1949 and 1982, the Q ratio fell to 0.3 or lower, and history is likely to repeat, said Napier. From the 1982 trough, the S&P 500 grew more than 14-fold to the middle of 2000, when Napier says the last bull market ended.

Asian trade in 'Free-Fall' The Baltic Dry Index measuring freight rates for bulk goods began to collapse in June, dropping 96pc over the five months in the most dramatic fall in shipping fees ever recorded. It was a leading indicator of what we are now seeing in Asian trade

Global demand for oil to plummet
“The increasing likelihood of a prolonged global economic downturn continues to dominate market perceptions, putting downward pressure on oil prices,” it said, forecasting that demand would drop 50,000 barrels a day this year and a hefty 450,000 b/d in 2009. US oil demand will drop next year to the lowest level in 11 years.

Quick Overview

• U.S. pending home sales fell 0.7% in October.
  

• Economic sentiment in Germany rose from -53.5 to -45.2
  
  

• White House, Congress reach 15 billion auto bailout deal.
  

• Japan machinery orders fall 4.4% in October

• U.K.'s manufacturing output fell 1.4%.
  

• Canada reduce its interest rate from 2.25% to 1.50
  

• Japan's GDP fell 0.5% QoQ and 0.4% YoY.
  

• YoY South Africa's gold production fell 14.4% in October

• Merrill Lynch and Morgan Stanley, responding to evaporating profits and public ire, won't pay bonuses this year to their chief executives.
  

• (Reuters) - The United States and other rich nations must pledge by the end of next year specific targets for cutting greenhouse gas emissions by 2020 to win agreement on a U.N. climate pact, the U.N.'s top climate official said.
  

• (Bloomberg) -- Cisco Systems Inc., General Electric Co. and Emcor Group Inc. may be winners as President-elect Barack Obama seeks to revive the U.S. economy by rewiring classrooms and libraries for high-speed Internet service and repairing bridges and highways.

Quick Overview

• Stocks are up on signs that the automakers will be able to avoid bankruptcy and Obama’s proposed stimulus plan.
  

• Housing starts in Canada’s fell 19% MoM.
  

• The USDA estimates 2008-2009 world ending stocks of coffee at 39.6 million bags -- 29% of use.
• (Bloomberg) -- World coffee consumption may outstrip production by as much as 8 million bags in 2009-10 because of the smaller crop in Brazil,
  

• More than half of all homeowners who had their loans modified to make the payments more affordable in the first half of the year are already in default again, banking regulators said.
  

Bulk shipping cos may benefit from early ore price resolution "Should China Iron and Steel Association successfully achieve an early reduction in contracted iron ore prices, the dry bulk market could experience a revival as iron ore shipments to more profitable steel mills resume", Nokta said in a report published on Friday

Deflation virus is moving the policy test beyond the 1930s extremes
His point was that central banks never run out of ammunition. They have an inexhaustible arsenal. The world’s fate now hangs on whether he was right (which is probable), or wrong (which is possible).

Oil Contango Pays Most in Decade as Shell Holds Crude in Ships
Stockpiling crude may provide higher returns than commodities, stocks and Treasuries as the U.S., Japan and Europe endure simultaneous recessions for the first time since World War II.

Quick Overview

• U.S. unemployment rate rose from 6.5% to 6.7%
  

• The percentage of U.S. mortgage holders who were behind in their payments rose to 6.99%.
  

• Canada’s unemployment rate rose from 6.2% to 6.3%
  

• Germany's manufacturing orders fell 6.1% in October.
  

Quick Overview

• U.S. jobless claims fell 21,000 last week to 509,000,
  
• U.S. factory orders dropped 5.1% in October.
  

• The European Central Bank reduced its interest rate from 3.25% to 2.50%,
  

• Australia reduced its interest rate from 6.5% to 5.0
  

• Britain reduced its interest rate from 3.00% to 2.00%,
  

• Sweden reduced its interest from 3.75% to 2.00%.
  

• GDP in the Euro area fell 0.2% QoQ, but up rose 0.6% YoY.
  

• (WSJ) Harvard University's endowment has investment losses of 22%, or about $8 billion, since the end of the school's fiscal year.
  

• Bernanke called on government to ramp up efforts to stem home foreclosures.
  

Recession: When the money goes, so does the toxic wife
The Toxic Wife, first identified in these pages almost two years ago, is a particular and terrifying species.

Defaults May Beat Great Depression, Junk Bonds Say
Defaults and bankruptcies are accelerating as financing options for high-yield companies dwindle amid the longest U.S. economic recession in at least 26 years. The U.S. default rate rose to 3.3 percent in October, according to Moody’s, which forecasts the rate to increase to 4.9 percent in December and 11.2 percent by November 2009.

World stability hangs by a thread as economies continue to unravel
The working assumption of the "Great Boom" is – or was – that we live in a benign era where most societies are converging towards some form of market liberalism; where trade and capital flows are unrestricted; where governments have enough legitimacy to keep order by light touch; where a major war is unthinkable.

Quick Overview

• Australia reduced its interest rate from 5.25% to 4.25%,
  

• Producer prices in the Euro area fell 0.8% in October, but rose 6.3% YoY.

• Thailand reduced its interest rate by 1% to 2.75%
  

• November U.S. vehicle sales for:
  Ford fell 31% YoY
  GM fell 41% YoY
  Chrysler fell 47% YoY
  Toyota were down 34% YoY
  Honda were down 32% YoY.

• (Bloomberg) -- Stocks in the U.S. and Europe will withstand a “full-blown” global recession to surge in 2009, UBS AG said.

Quick Overview

• Bernanke said the Fed could directly buy securities and backstop markets as interest rates approach zero.

• The Institute of Supply Management's manufacturing index fell from 38.9 to 36.2 in November.
  

• U.S. construction spending fell 1.2% MoM.
  

• Canada’s GDP rose 0.5% YoY.
  

• Manufacturing in the U.K. fell from 40.7 to a record low of 34.4 in November.
  

• Euro zone manufacturing fell from 41.1 to a record low of 35.6 in November.
  

• OPEC members met but did not announce any production cuts.
  

• The International Cocoa Organization estimated that world consumption exceeded production by 77,000 tons in 2007-2008.

• Retailers got off to a better than expected start for the holiday shopping season, with consumers spending an estimated 7.2% more this year than last.

• Ford may sell Volvo

Citigroup says gold could rise above $2,000 next year as world unravels
This gamble was likely to end in one of two extreme ways: with either a resurgence of inflation; or a downward spiral into depression, civil disorder, and possibly wars. Both outcomes will cause a rush for gold.

Quick Overview

• Euro area unemployment rate rose from 7.6% to 7.7% in October, the highest in two years.
  

• YoY Japan’s consumer prices rose 1.7% in October
  Japan’s industrial production fell 3.1%
  Japans’ household spending fell 3.8% in October.
  Japan’s unemployment rate improved from 4.0% to 3.7% in October

• NEW YORK (Reuters) - A man working for Wal-Mart was killed on Friday when a throng of shoppers surged into a Long Island, New York, store and physically broke down the doors, a police spokesman said.

• MOSCOW (Reuters) - Russia's military said on Friday it had intensified efforts to develop new ballistic missiles in response to U.S. plans to deploy an anti-missile system in Europe and Russia's navy test fired a new generation rocket.

Possible Geopolitical Consequences of the Mumbai Attacks (Stratfor)
It is not clear the degree to which the Pakistani government can control the situation. But the Indians will have no choice but to be assertive, and the United States will move along the same line. Whether it is the current government in India that reacts, or one that succeeds doesn’t matter. Either way, India is under enormous pressure to respond. Therefore the events point to a serious crisis not simply between Pakistan and India, but within Pakistan as well, with the government caught between foreign powers and domestic realities. Given the circumstances, massive destabilization is possible — never a good thing with a nuclear power.

Quick Overview

• U.S. orders for durable goods fell 6.2% in October, weaker than expected. Excluding transportation, orders fell 4.4%.
  

• U.S. New home sales fell 5.3% MoM. YoY new home sales are down 37%.
  

• The University of Michigan's consumer sentiment index fell from 57.6 to 55.3.
  

• U.S. personal incomes rose 0.3% in October
  

• U.S. Consumer spending fell 1.0%.
  

• The Chicago index of purchasing managers fell from 37.8 to 33.8 in November.
  

• The European Union is plotting a 200 billion euro stimulus plan.
  

• Australia's construction activity rose 4.4% in September
  

• China cut its interest rate from 6.66% to 5.58%,
  

• Ports in China registered a 6% per YoY volume growth in October.
  

• The World Bank expects China's economy to expand 7.5% in 2009 - down from its earlier forecast of 9.2%
  

• The U.S. Department of Energy said:
  Supplies of crude oil rose 7.3 million barrels to 320.8 million barrels.
  Supplies of gasoline rose 1.9 million barrels
  Supplies of heating oil fell 400,000 barrels.
  Refinery use rose from 84.9% to 86.2% of capacity last week.
  Gasoline demand fell 2.8% YoY
  Distillate demand fell 2.2% YoY.
  

Is Britain going bankrupt?
Today they reached 86 basis points, near Portuguese debt in the league table. For good reason. Alistair Darling has had to admit that the British economy faces the most sudden economic collapse since World War Two, and the worst budget deficit of any major country in the world.
Ok, this is a lot lower than Iceland, Ukraine, Hungary, and other clients of the IMF, but is significantly higher than Germany (35), USA (43), and France (49).

Quick Overview

• Helicopter Ben is working hard. The Fed threw a massive $800 billion life-line to consumers with two new programs aimed at making it easier for them to obtain loans for homes, cars and on credit cards.
  

• U.S. GDP shrunk at an annual rate of -0.5% in the third quarter, down from the previous estimate of -0.3%.
  

• The U.S. GDP price index rose 2.7%.
  

• YoY U.S. Corporate profits fell 9.0%.
  

• The Conference Board's consumer confidence index rose from 38.8 to 44.9 in November,
  

• YoY S&P/Case-Shiller national index fell 17% in September.
  

• The World Bank predicted real GDP in China will be up 7.5% in 2009,
  

• Canada’s retail sales rose 1.1% in September.
  

• BHP Billiton scrapped its hostile bid for Rio Tinto because of slumping commodity prices.

Quick Overview

• The U.S. Government agreed to stabilize Citigroup by guaranteeing $306 billion in troublesome assets. It also gave Citi $20 billion in exchange for preferred stock.
  

• The National Association of Realtors said Home resale’s fell to a 4.98 million annual rate, a 3.1% decrease from September's revised figure.
  The median-sales price declined to $183,300.

• Industrial new orders in the Euro area fell 3.9% in September. YoY orders fell 1.1%.
  

• YoY GDP in Chile rose 4.1%
  

• Consumer confidence in Canada dropped further in November to a fresh 26-year low, the Conference Board of Canada said.
  

• Hungarian central bank cut its base rate by 50 bps to 11%
  

• The USDA said there were 10.97 million head of cattle on feed as of November 1st, down 6.8% YoY.
  

• The USDA said frozen pork supplies at the end of October were up 4% YoY
  

• The terminal operator of China's Cosco Group, said throughput increased 14.1 % in October, but fell 8.5 % at its Cosco-HIT facility in Hong Kong.

• In the latest issue of The New Yorker magazine, Bernanke has recognized he was wrong to believe there would be limited fallout to financial markets from the US housing market's collapse.

Recession’s Grip Forces U.S. to Flood World With More Dollars
Investors, shell-shocked by the turmoil, are piling into super-safe Treasury securities, even as the U.S. government ships more supply out the door. Three-month bill rates dropped last week to 0.01 percent, the lowest since at least January 1940, and yields on Treasuries maturing in two through 30 years all fell to the least since the government began regular sales of the securities.

Geithner could slow bank-stock assault
But even analysts who have long been skeptical of Citi says its recent trading price understates the firm's true worth. "We believe that there is fundamental value at Citigroup that justifies a $9 price target," Deutsche Bank analyst Mike Mayo wrote Friday

Quick Overview

• Asian markets defied the big U.S. slump overnight and ended higher. Japan's Nikkei rose 2.7%, South Korea's Kospi rose 5.8%.
  

• Japan kept the interest rate at 0.30%
  Japan's Finance Minister said he may consider intervention to bring the yen down from "undesirable" levels.
  
  

• Manufacturing and services index in the Euro area dropped from 43.6 to 39.7
  

• YoY Canada’s consumer prices rose 2.6%
  

• Consumer spending in France fell 0.4% in October.
  

• The World Gold Council said world gold demand was 1,133 tons in the third quarter of 2008, up 18% YoY.
  

• The International Copper Study Group said that world copper production exceeded use by 125,000 tons in August.
  

Markets wary of Irish debt as fresh rescue looms
This is a disturbing pattern across Europe as the global credit crisis drags on, with extreme cases in Iceland, Ukraine, Russia, Hungary and Latvia. There are fears that investors could start to shun sovereign debt in Western states where banks have outgrown the underlying economy.