LSC Jan down US$1.31 to S$72.62 – 5th down session bringing losses to close to 6 bucks
Downward spiral attributed to strengthening dollar while demand has not really benefited from early signs of revcovery.
US energy Administration lowered 2010 outlook to 270,000 barrels a day

Visa and Master ordered to pay last tranche of US$1.1b to merchants in antitrust settlement.
Total payment agreed in 2003 was US$3.4b after 7 years of litigation.

Dow down 104.14 (1%) as concerns circled on recovery momentum after Bernanke’s speech.
Moody’s warns that although the crisis is ending, AAA nations will struggle to find money to reduce public debt from slow economic growth, and poor interest rate trends.
Fitch warns that Britain was the country where its AAA rating was most at risk – due to its high level of public debt.

Obama rolled out a package of tax breaks, infrastructure investment and spending on energy efficiency, intended to ignite jobs growth and fight high unemployment.

Japanese economy grew at 1.3% annualized (Q3), down from original estimate of 4.8%

Bernanke: Though we have begun to see some improvements in economic activity, we still have some way to go before we can be assured the recovery will be self-sustaining.
Statement was read as an indication that rates will be kept at the current low for time to come.
The Fed chief expects modest (albeit slower than ideal) growth for 2010 that would help lower unemployment.
Bernanke’s statement brought USD to 1 month high at 1.4819 per Euro
Stocks ended mixed with the Dow up 1.21 (0.01%).

Japan’s current account surplus rose 42.7% yoy, as trade surplus rose 7times from lowered energy prices.

US Fed – Bernanke’s reappointment hits blip as individuals contest his capabilities to lead the Fed.
Bernanke admits mistakes were made all around, and that given a chance, he might have dealt with certain matters differently.
He is expected to win approval from the Banking Committee and the full Senate.

UK – Government demanded control of RBS payouts and to cut bonuses.
RBS warned it could struggle to hire and retain key staff as a result, and the board could resign in protest of the crackdown.

EDB keeps key rate at 1.0%, a record low since May.
Europe out of recession in Q3 with 0.4% growth.
Analysts expect revised growth forecasts to be more upbeat than those issued in September.

US – New unemployment claims down unexpectedly by 1.1% seasonally adjusted.
ISM said its non-manufacturing index dropped to 48.7% in Nov, 1.9% lower than Oct.
Analysts were expecting a 51.5% figure for the non-mfg sector which makes up more than 85% of the economy.
Dow down 86.53 (0.83%)

Singapore pledges to reduce carbon emissions growth by 16% below the projected 2020 levels if a global agreement can be reached and other countries implement similar targets.

Singapore average monthly household expenditure for 07/08 increased 2.7% compared to 02/03
Average monthly household income rose from S$5,540 to S$7,440

BoA to repay TARP under a single payback. TARP assistance stood at US$45b.
BoA will repurchase all preferred shares but would not immediately buyback all options or warrants.

Dow down 18.9 (0.18%) as US shares finished mixed on weak employment and optimistic Beige Book.

US private sector shed jobs at a slower pace as nonfarm sectors lost 169,000 jobs in November, 26,000 less than October, but was still above the 150,000 expected.
Employment lags economic activity and is thus expected to be down for the next few months.

Fed Beige Book – survey of 12 states – indicated economic conditions are progessing modestly with 8 districts indicating pickup in activity or improvement in conditions.

LSC up US$1.09 to US$78.37 from Iran’s seizure of 5 British sailors in the Gulf..
Public also found support from robust manufacturing data from China.

USD down against euro as risk appetite returns from initial concern of Dubai World.
Dollar traditionally seen as safe haven in times of economic stress.

Dow up 126.74 (1.23%) as concerns on Dubai wane from headway in restructuring of debt.
Positive US economic data –
ISM Mfg index expanded (albeit at a weaker pace) at 53.6 compared to 55.7 in Oct – 4 consecutive months of growth.
Pending home sales rose 3.7% in Oct – 9th consecutive month.

AIG to move ownership of 2 subsis – ALICO and AIA to the Fed to cut its debt by US$25b.
Outstanding amount stands at US$17b principle.

Unemployment in Eurozone at highest since Dec98 – seasonally adjusted 9.8% in Oct
US unemployment was at 10.2% in Oct.

Las Vegas Sands Macau down 10.2% to HKD9.32 after commencing trading at HKD10.38.
Analysts believe company was over valued at IPO. Company raised US$2.5b from the IPO (below targeted US$3.4b).
Proceeds to be used to reignite stalled construction of the Macau resort, and for paying down debt.

LSC up US$1.23 to US$77.28 after unexpected rise in business activity as Chicago’s Purchasing Manager’s Index rose for a second consecutive month to 56.1 from 54.2.
Analysts believe the PMI’s date reflects well on the ISM’s data which is believed to be an indicator of GDP.
LSC was down almost US$2 on Friday from Dubai World’s 6 month delay in its debt repayment.

Dow up 34.92 (0.34%) after Dubai World announced it would restructure part of the group, including property arm Nakheel.
Total value of the debt carried by the companies subject to the restructuring is approx US$26b.

Fed: US economy outlook with expected growth (2010) of 2.5 to 3.5%, up from previous 2.1 to 3.3%, as Fed “anticipated that economic recovery would be gradual, with real gross domestic product (GDP) growing at a moderate pace and the unemployment rate declining slowly over the next few years."
Unemployment is expected to peak in 2009, and would ease in early 2010.


Commerce department: Estimate of 3Q GDP cut from 3.5% to 2.8% (annualized), after taking into account updated consumer spending and trade data.
This figure was still in line with most analysts forecasts.

Conference Board: US Consumer Confidence up to 49.5 (seasonally adjusted) from 48.7 in October – above expected figure of 47.5.
Improvement was a result of a decrease in consumers expecting business and labour markets to worsen.

Dow shed 17.24pts (0.16%), down from its highest close since October 08.
Although the US economy expanded for the first time in Q3 after a year of contraction, analysts said the government's revised GDP figure exposed weakness in the world's largest economy.

HP Q3 profit up 14% increase mom as slumping personal computer sales were offset by a solid performance in its services division, and successful cost cutting measures.
Net profit was reported at US$2.4bn (99c/sh) compared with US$2.1bn (84c/sh) a year ago.

A rush to cash in on tax incentives helped propel sales of existing US home by 10.1% in October.
The National Association of Realtors said sales of existing single-family homes and apartments rose to a seasonally adjusted annual pace of 6.10mn units, well ahead of market expectations of 5.7mn.

Dow up 132.79 (1.3%) after losing 120 over the previous 3 days ending at its highest close since Oct 2 2008.
The stock market ended higher as a weaker dollar and upbeat home sales numbers encouraged investors to take on more risk.
The day's developments pointed to 2 key trends, a recovering economy and interest rates that are expected to stay low:

Eurozone out of recession with Q3 growth at 0.4% annualized.
OECD expects Q4 to grow at 0.6%. 2009 expected to show overall 4.0% contraction, while a growth of 0.9% is expected in 2010.
Unemployment forecasted at 9.4% in 09, 10.6% in 2010, and a peak of 10.8% in 2011

Dow slipped 93.87pts (0.9%) in a second consecutive down day – driven by OECD’s modest view on world economic recovery.
Pessimism was contributed by ML’s downgrade of 8 microchip companies on excess inventory with no visible outlook of a sharp recovery.
Conference boards index of leading indicators rose 0.3%, less than expected 0.4%
New jobless claims have fallen 22% for the year, but reluctance in increasing hires, evidenced by still high unemployment claims, have raised concern over the pace of recovery from lack of consumer spending.

Singapore ytd (Q3) growth at 0.6%, Q3 annualized at 14.2% - led by manufacturing which registered a 26.6% growth.
Overall 2009 expected at -2.0 to -2.9%
2010 economic growth expected at 3-5% with inflation revised upwards to 2.5 – 3.5% largely driven by higher property taxes from increased AVs.

US consumer prices rose by a higher-than-expected 0.3 per cent in October primarily on the back of higher gasoline prices.
Yoy CPI showed a decline of 0.2%
Core CPI showed a mom increase of 0.2% and yoy at 1.7%
Report confirms that inflation worries are not significant, while there remains slight concern of deflation.

US private home starts down 10.6% in October to 529000, below expectations of 600000

Dow fell 11.11 (0.1%) after being up 714pts (7.4%) for this month.
Liquidity was low, with relatively low no of buyers to sellers implying the inability to hold its prices from the previous upsurge.
Stocks down from an unexpected drop in construction starts, and poor forecasts from tech companies incl RIM.