Tom Hanna's Lifestream

Commentary and Overnight TradingEven trouble in the Middle East hasn't managed to move oil back above the $40 mark yet [2:30 AM Eastern]. And though a $1.31 increase has it well within striking distance of that mark, the increase can be accounted for almost entirely by a drop in the dollar - down against the yen, euro, pound and Canadian dollar. US stock market index futures are down about a half-percent, while Asian markets are up slightly. Financial Roadmap: The Week Ahead December 29, 2008 to January 2, 2009This week will give investors another breather of sorts with overflowfrom last week's holidays starting off the week when the Fed reports onmoney supply Monday. This statistic had become so boring, and so littleconsulted, a few years ago that the Fed moved to a leaner version. Thetheory at the time was that what was important to watch for monetarypolicy was the federal funds rate. Now the Fed has slashed that rateabout as low as possible and is directly inflating the money supply asa major policy tool. The numbers are getting very interesting and theyare pointing in a very familiar direction – another bubble is in theworks.Economic NewsDurable Goods Orders - November 2008 New Orders: $186.9 billion New Orders Change: Down 1% Nondefense Capital Goods Change: Down 0.8%Jobless Claims - December 24, 2008 Initial Claims: 586,000 Change from Last Week: Up 30,000Personal Income and Outlays - November 2008 Personal Income: Down $20.7 billion Monthly Change: Down 0.2% Real Disposable Personal Income: Up 1%Weekly Mortgage Applications Survey - December 24, 2008 Market Composite Index: 1245.4 Change: Up 48% Purchase Index: 316.5 Change: Up 10.6%Interest rates at 37-year lowFreddie Mac and the Mortgage Bankers Association are both reporting30-year rates near 5% and 15-year Fixed Rate Mortgage (FRM) rates below5% for a second week. Buyers have responded aggressively to the lowerrates, with mortgage applications for home purchases up more than 10%last week.What I'm ReadingPaulson's Progress With China Evaporates as Recession Reopens Trade Rifts The global recession is re-exposingfissures in U.S.-China relations that Treasury Secretary HenryPaulson spent more than two years smoothing over. U.S. Retailers Face Store Closings, Bankruptcies as Holiday Sales Slump U.S. retailers face a wave of storeclosings, bankruptcies and takeovers starting next month asholiday sales are shaping up to be the worst in 40 years. London House Prices Led Declines Across U.K. in 2008 and May Fall Further London house prices fell more thanin any other U.K. region this year and probably will declinefurther in 2009 as the economy sinks deeper into a recession,Hometrack Ltd. said. South Korea Consumer Confidence Falls to 10-Year Low as Unemployment Rises South Korea’s consumer confidencefell to the lowest level since the Asian financial crisis adecade ago on concern faltering economic growth will lead tofurther job cuts and falling incomes. Japan Economy May Shrink 6.5% This Quarter, Bank of America's Fujii Says Japan’s economy may shrink at anannual 6.5 percent pace this quarter, Bank of America Corp. saidafter reports last week showed industrial production and exportsposted the biggest declines on record. Israel May Cut Key Interest Rate Half-Point to Record 2% as Growth Weakens The Bank of Israel will probablylower its benchmark lending rate tomorrow to a record asGovernor Stanley Fischer seeks to shore up flagging economicgrowth, a survey showed. U.S. Manufacturing Probably Shrank Most Since 1980 as Global Demand Slid Manufacturing in the U.S. probablyshrank at the fastest pace since 1980 as the deepening globalrecession forced customers in North America, Europe and Asia tocut back, economists said before reports this week. Democrats May Add Municipal-Bond Tax Break to Sweeten Obama Stimulus Plan Congressional Democrats are seekingto expand funding for airport runways, housing projects andsewage-treatment plants though a new tax break for municipalbondholders. Biggest Bond Investors Look for European Rally in 2009 as ECB Follows Fed The world’s biggest bond investorsare betting European Central Bank President Jean-Claude Trichetwill be forced to follow Federal Reserve Chairman Ben S.Bernanke and step up the pace of interest-rate cuts. Iceland's Fall: The Isle That Rattled the WorldIceland is an extreme casualty of an era in which it waseasy to borrow money. The tiny isle became so leveraged that itscollapse has rattled the world.Thanks for reading. This content is originally from EconoIndicators or The Economic Indicators Blogger blog. Click through for more.