• *** ECONOMIC SCHEDULE ***
• UK BOE to announces interest rate decision: Expected to keep rates on hold at 5.75% [7:00 et]
• EU ECB to announce interest rate decision: Expected to keep rates on hold at 4.00% [7:45 et]
• US Initial Jobless Claims: 325Ke || 327K prior [8:30 et]
• US Continuing Claims: 250Ke || 2588K prior [8:30 et]
• US Treasury to hold 30-year bond auction [13:00 et]
• *** ASIAN NEWS OVERNIGHT ***
• JP Sep Machine Orders: M/M ??“7.6% v ??“1.5%e || Y/Y ??“7.0% v ??“0.9%e
• JP Net Stocks Investment: ??202.2B v ??45.6B prior || Prior revised from ??45.6B to ??43.4B
• JP Net Bonds Investment: ??288.0B v ??740.3B prior || Prior revised from ??740.3B to ??739.3B
• JP Oct Money Supply M2 +CD: 2.0% v 1.7%e
• JP Oct Broad Liquidity: 3.6% v 4.1%e
• JP Oct Bank Lending incl. Trusts: 0.7% v 0.6%e
• SK South Korean Central Bank keeps rates on hold at 5.00% as expected
• SK Oct Producer Price Index: 3.4% v 2.1% prior
• SK Oct Consumer Confidence: 103.3 v 103.2 prior
• SK Oct Consumer Confidence sa: 106.1 v 104.8 prior
• AU Oct Employment Change: 12.9K v 20.0Ke
• AU Oct Unemployment Rate: 4.3% v 4.2%e
• AU Oct Participation Rate: 65.0% v 65.0%e
• NZ Q3 Unemployment Change: Q/Q ??“0.3% v 0.4%e || Prior revised from 0.7% to 0.6% |||| Y/Y 1.5% v 2.3%e
• NZ Q3 Unemployment Rate: 3.5% v 3.6%
• IMF Official: South Korean GDP seen growing at 4.6% in 2008
• HKMA may consider more frequent money market intervention
• JP sells ??1.82T in 5-year bonds with an average yield of 1.078% and a bid-to-cover of 2.52x. The bid-to-cover on the previous auction was 3.26x.
• PBOC Official: PBOC sees 2007 GDP above 11% and CPI around 4.5%
• PBOC Official: Will enhance Yuan flexibility
• PBOC Official: To use price tools to stabilize inflationary pressures
• PBOC Official: Expresses concern over a possible fallout from the US sub-prime situation
• PBOC Official: Oil prices may continue to rise
• *** EUROPEAN NEWS OVERNIGHT ***
• SZ Oct Unemployment Rate: 2.6% v 2.5%e
• SZ Oct Unemployment Rate sa: 2.6% v 2.6%e || Prior revised from 2.6% to 2.7%
• GE Sep Trade Balance ?‚¬18.1B v ?‚¬16.0Be
• GE Sep Current Account: ?‚¬15.4B v ?‚¬12.1Be || Prior revised from ?‚¬9.1B to ?‚¬8.8B
• GE Sep Imports: -2.6% v ??“0.8%e || Prior revised from 5.6% to 4.5%
• GE Sep Exports: 0.7% v 0.4%e || Prior revised from 3.0% to 2.4%
• UK HBOS House Prices: M/M ??“0.5% v 0.5%e || Y/Y 8.9% v 9.4%e
• SW Sep Industrial Production: M/M ??“0.6% v 0.5%e || Prior revised from ??“0.7% to ??“0.5% |||| Y/Y 1.1% v 2.9%e || Prior revised from 2.4% to 2.8%
• SW Sep Industrial Orders: M/M 5.8% v ??“3.5% prior || Prior revised from ??“3.5% to ??“3.1% |||| Y/Y 1.7% v 2.6%e || Prior revised from 2.6% to 2.4%
• SW Sep Activity Index Level: 121.4 v 121.1 prior
• GE Has no plans to push G-7 on the Euro [wires citing sources]
• GE German government will not pressure hte ECB about Euro FX
• GE ECB's independence is highly valued [wires citing sources]
• GE There are some concerns arond the economic impact of the strong Euro [wires citing sources]
• GE Surprised on how well the firms are coping with the strong Euro [wires citing sources]
• GE Japanese and Chinese FX continue to be a source of concern [wires citing sources]

By: John J. Phillips IV