Ford Motor Company
The automaker said it would cut its stake in Mazda Motor to roughly 13% from 33% for $540M.

Hewlett-Packard Co.
The technology giant said it expects to post a fiscal fourth-quarter profit of 84 cents a share, with adjusted earnings of $1.03 a share. The latter figure tops the analysts' consensus target of $1 a share. "HP ... continues to benefit from its global reach, diverse customer base, broad portfolio and numerous cost initiatives," said CEO Mark Hurd.

Pepsi Bottling Group Inc
The soft drink bottling company will begin a multi-year restructuring that is expected to save $150M to $160M a year before taxes. About 750 jobs in the U.S. and Canada will be affected along with 200 jobs in Europe; the company also warned on profits.

Yahoo! Inc
Jerry Yang is stepping down as chief executive, the company said late Monday. The company said a search for a new CEO is being led by its chairman, Roy Bostock, and the executive recruitment firm Heidrick & Struggles.

The yen dropped against the euro and the dollar for the first time in three days as stock gains fueled speculation investors will be slower in selling higher- yielding assets funded by low-cost loans in Japan.
``In terms of currencies, we are still largely tracking equities,'' said Vassili Serebriakov, a currency strategist at Wells Fargo & Co. in New York. ``It's still an equity-driven market.''
The ICE's Dollar Index, a gauge of the greenback against the euro, the yen, the pound, the Canadian dollar, the Swiss franc and Sweden's krona, rose to 86.987 from 86.807 yesterday. The index reached 88.147 on Nov. 13, the highest level since April 2006, as investors sought safety in U.S. assets.
International demand for U.S. financial assets rose more than economists forecast in September. Total net purchases of long-term equities, notes and bonds increased $66.2 billion in September from $21 billion in the previous month, the Treasury said today.
``I am very, very bullish on the dollar,'' said Michael Klawitter, a currency strategist at Dresdner Kleinwort in Frankfurt. ``The main story that we are seeing at the moment is the high perception of risk, and that is leading to capital repatriation back into the U.S.''
The yen dropped against the Australian dollar and versus New Zealand's currency on speculation carry trades, in which investors get funds in a country with low borrowing costs and buy assets where returns are higher, will unwind at a slower pace.
Minutes of the Reserve Bank of Australia's Nov. 4 meeting released today showed policy makers cut the cash target by 0.75 percentage point in response to ``the marked deterioration in global financial conditions'' in the past couple of months.
``The RBA is likely to reduce rates further,'' said Toshihiko Sakai, head of trading for foreign exchange and financial products in Tokyo at Mitsubishi UFJ Trust & Banking Corp., a unit of Japan's biggest bank. ``There's a downside risk for high-yielding currencies.''

«Oct PPI was likely the cycle peak for core. We look for a significant deceleration in over the
course of coming months reflecting the recent declines in commodity prices and a severe lack of pricing power in a slowing demand environment.»

Blue chips rallied near midday Tuesday after a volatile morning, as investors considered Hewlett-Packard's strong forecast and Congressional hearings on the $700 billion bank bailout and the automaker sector.
Hewlett-Packard forecast fiscal fourth-quarter profit that is above analysts' forecasts, despite the sagging economy. HP also lifted its fiscal-year 2009 forecast. It was welcome news for tech investors after both Intel and Cisco warned about weaker sales in the current quarter.
The morning's economic news was far less buoyant. Home prices plummeted in the third quarter by a record 9% versus a year ago, amid a flood of foreclosures. On the upside, bargain hunters have been scooping up properties in some of the hardest-hit areas.
A separate report showed that inflationary pressures remain moderate. Wholesale prices posted the sharpest monthly decline on record in October due to the collapse in oil prices over the last four months. But prices excluding food and energy, the so-called "core" reading, rose more than expected.
The House Financial Services Committee is holding a hearing Tuesday regarding the $700 billion bank bailout, with Secretary Treasury Henry Paulson, Federal Reserve Chairman Ben Bernanke and FDIC Chairman Sheila Bair all speaking.
Both Paulson and Bernanke told Congress that the bailout has been working to help stabilize the financial system, despite recent criticism.
Lawmakers are especially concerned by last week's decision to stop buying up bank's troubled assets and instead take ownership stakes in the firms.
Later today, Congress begins debating whether to bail out the hard-hit industry with an additional $25 billion on top of the $25 billion General Motors, Ford Motor and Chrysler have already received.
COMEX gold for December delivery fell $3.20 to $738.80 an ounce.
U.S. light crude oil for December delivery rose 13 cents to $55.08 a barrel on the New York Mercantile Exchange, the lowest close since January 2007.
Borrowing rates were little changed from the previous day, with the credit market continuing to stall after a month long improvement. The 3-month Libor rate fell to 2.22% from 2.4% Monday, while overnight Libor was unchanged at 0.4%, according to Bloomberg.com. Libor is a key bank lending rate.

"TICs show China was still a net buyer of US securities in September, and Japan and Russia net
sellers. China's holdings of Tsys were +$43.5b. China's total US dollar holdings have increased $207 bln since June 2007.

HSBC says "even though the core PPI rise was driven by the three A's (autos/aircraft/alcohol), and therefore can be played down, the yy rate at 4.4% is elevated, and in normal circumstances would be a problem. But we're in a credit crunch recession, so this reading does not mean much right now."

Spikes to Y97.36 area in recent trade as the pair trades somewhat independently of the Dow which has backtracked slightly from its best levels of the day. Spike in the pair suggests stops noted earlier were flushed. Offers and stops remain around Y97.50.

CAC-40 is up 5pts, FTSE-100 flat, Xetra-DAX also flat.

Bernanke says there are some signs credit mkts are better but they are "still quite strained." Banks and regulators are working together to meet credit needs. Says when strains abate will have to cut back special programs.
FDIC's Bair says FDIC remains committed to protecting depositors, reviews recent steps. FDIC is looking at new ways to structure guarantee program.
Tsy's Paulson defends TARP actions (asset purchases would not have effective quick enough, hence capital infusion plans), does not plan another capital infusion program, and confirms wants to commit some TARP funds to the Fed.

Futures point to a negative start (S&P futures vs fair value: -4.70. Nasdaq futures vs fair value: +5.20), but pare some losses after Hewlett Packard (HPQ) gave upside fiscal year 2009 earnings guidance.

The rate edges higher, moves above overnight Asian highs at $1.2665 to post fresh intraday highs at $1.2680. A move above this area to open a move on toward $1.2680/85 ahead of $1.2700/10. Through this latter area and seen exposing Monday's highs and triangle top at $1.2740.

The following data were published:
00:30 Australia RBA Meeting's Minutes (Nov)
05:00 Japan Leading Economic Index (Sep) 100.9 89,2 89,2
05:00 Japan Coincident Index (Sep) 89.4 100,8 100,8
09:30 UK RPI-X (October) Y/Y 4.7% 5,5%
09:30 UK Retail prices (October) Y/Y 4.2% 5,0%
09:30 UK Retail prices (October) 0,1% 0,5%
09:30 UK HICP ex EFAT (October) Y/Y 2,2% 2,2%
09:30 UK HICP (October) Y/Y 4.5% 5,2%
09:30 UK HICP (October) -0.2% 0,1% 0,5%

The yen gained against the euro and the dollar as stocks tumbled on the prospect of a global recession, prompting investors to sell higher-yielding assets to pay back low-cost loans in Japan's currency.
The yen also rose against the Australian dollar after the Reserve Bank of Australia said it favored lower borrowing costs. The dollar advanced against the euro amid speculation overseas investors bought more of the safest U.S. assets as the global economy slumps.
``Weaker equities are playing into the theme of risk aversion, which is supporting the yen,'' said Derek Halpenny, head of global currency strategy in London at Bank of Tokyo- Mitsubishi Ltd. ``We are going to see the dollar gradually drift lower against the yen if this scenario continues.''
The yen's rise came as stocks in Europe and Asia declined for a second day, led by financial companies and commodity producers, and U.S. index futures fell on concern the deepening recession will erode profits.
``The yen continues to gain momentum today because of the retraction in risk appetite,'' said Neil Jones, head of European hedge fund sales in London at Mizuho Capital Markets. ``The world is not over the worst of things so the next big leg ahead for the yen is to strengthen.'' The dollar may fall to 86 yen by March, he said.
``I am very, very bullish on the dollar,'' said Michael Klawitter, a currency strategist at Dresdner Kleinwort in Frankfurt. ``The main story that we are seeing at the moment is the high perception of risk and that leading to capital repatriation back into the U.S.'' The U.S. currency may gain to $1.05 per euro and 103 yen by June, Klawitter forecast.

EUR/USD got support at $1.2570, before bounced back to the middle of the day's range $1.2630.

"We would not be surprised if the Empire survey is followed by more negative November manufacturing surveys. The next report will Thursday's regional survey from the Philadelphia Fed, which last month hit its lowest level since 1990."

The yen gained against the euro and the dollar as stocks tumbled on the prospect of a global recession, prompting investors to sell higher-yielding assets to pay back low-cost loans in Japan's currency.
The yen also rose against the Australian dollar after the Reserve Bank of Australia said it favored lower borrowing costs. The dollar advanced against the euro amid speculation overseas investors bought more of the safest U.S. assets as the global economy slumps.
``Weaker equities are playing into the theme of risk aversion, which is supporting the yen,'' said Derek Halpenny, head of global currency strategy in London at Bank of Tokyo- Mitsubishi Ltd. ``We are going to see the dollar gradually drift lower against the yen if this scenario continues.''
The yen's rise came as stocks in Europe and Asia declined for a second day, led by financial companies and commodity producers, and U.S. index futures fell on concern the deepening recession will erode profits.
``The yen continues to gain momentum today because of the retraction in risk appetite,'' said Neil Jones, head of European hedge fund sales in London at Mizuho Capital Markets. ``The world is not over the worst of things so the next big leg ahead for the yen is to strengthen.'' The dollar may fall to 86 yen by March, he said.
``I am very, very bullish on the dollar,'' said Michael Klawitter, a currency strategist at Dresdner Kleinwort in Frankfurt. ``The main story that we are seeing at the moment is the high perception of risk and that leading to capital repatriation back into the U.S.'' The U.S. currency may gain to $1.05 per euro and 103 yen by June, Klawitter forecast.
Overseas investors probably bought a net $27.2 billion of U.S. assets in September, from $14 billion in August. The Treasury will release the report at 1400 GMT today.

Announcements of significant job cuts at major financial firms and weakening earnings outlooks from several big retailers continue to weight on the markets. UK stocks also under pressure after steeper than expected fall in CPI at -0.2% m/m, +4.5% y/y -- the first annualised fall since August 2007 and the largest since the current CPI data series began in January 1997 -- in turn increasing fears about deflation. CAC-40 is down 61pts (-1.92%), Xetra-DAX is down 91pts (-2.00%) and FTSE-100 is down 69pts (-1.67%).

EUR/USD $1.2590/00, $1.2675, $1.2490, $1.2400, $1.3005
USD/JPY Y96.50, Y97.50, Y98.80, Y100.00
USD/CAD C$1.2500

The following data were published:
00:30 Australia RBA Meeting's Minutes (Nov)
05:00 Japan Leading Economic Index (Sep) 100.9 89,2 89,2
05:00 Japan Coincident Index (Sep) 89.4 100,8 100,8

The dollar rose against the euro and the yen on speculation overseas investors bought more of the safest U.S. assets as the global economy entered a recession.
The Dollar Index, a measure of the greenback against a basket of currencies of six trading partners, approached a two- year high before the Treasury releases data today that will probably show investors almost doubled holdings of the nation's securities in September. The Australian dollar declined after the country's central bank said it favored lower borrowing costs.
Overseas investors bought a net $27.2 billion of U.S. assets in September, from $14 billion in August, according to a Bloomberg News survey of economists. The Treasury will release the report at 1400 GMT today.

EUR/USD found the base around $1.2600 having posted earlier high at $1.2665.

The yen fell against the euro as U.S. stocks erased their decline, slowing the sale higher- yielding assets funded in Japan's currency. Japan's currency earlier rose against the dollar and the euro as a drop in U.S. stocks prompted speculation that investors will unwind carry trades. The Standard & Poor's 500 Index gained 0.5 percent after falling as much as 2.8 percent. The U.S. economy will contract 0.2 percent in 2009 after growing 1.4 percent this year, according to the median estimate in a poll of business economists taken by the National Association for Business Economics. A majority of respondents said the U.K., the euro countries, Japan, Canada and Mexico are either now, or will soon be, in a recession.

Resistance 3: Y100.55
Resistance 2: Y98.50
Resistance 1: Y97.60
Current price: Y96.47
Support 1: Y96.10
Support 2: Y95.10
Support 3: Y94.40
Comments: The yen trades within former range. Initial support is session low Y96.10, Y95.10 and last week's low at Y94.40. Resistance comes at Y97.60. stronger one near Y98.30 - November 10 high ahead of Y99.70 and Y100.55/85 zone.

Resistance 3: Chf1.2100
Resistance 2: Chf1.2060
Resistance 1: Chf1.2010
Current price: Chf1.2004
Support 1: Chf1.1900
Support 2: Chf1.1830
Support 3: Chf1.1775

Comments: The pare trades close to the channel top near Chf1.2010/20. Given bearish divergences on the hourly charts correction is not ruled out. Last session low Chf1.1890 and 100-MA on hourly chart currently at Chf1.1870 look like the closest supports. Break out level and lower bound of the channel at Chf1.1830 is the stronger level ahead of Chf1.1780/60 and Chf1.1680. Another push higher to open the way to the upper bound of the rising channel from July low currently near Chf1.2060 ahead of Chf1.2100.

Resistance 3: $1.5550
Resistance 2: $1.5250
Resistance 1: $1.5070
Current price: $1.4967
Support 1: $1.4940
Support 2: $1.4880
Support 3: $1.4650

Comments: Bounce off the daily Bollinger band base now leaves risk of further squeeze higher to $1.5230/50 -- resistance line from October 30 and 50% of the fall from $1.5870. Initial resistance is at $1.5070, which is the 23.6% of $1.6668 to $1.4567 move and break above here is seen as the upside trigger for bulls. Initial support is at session's low $1.4940, at $1.4880 (50% of the resent rebound) and $1.4650 below. Last week's low at $1.4560 and lower bound of the falling channel at $1.4440 remain the distant targets.

Resistance 3: $1.2860
Resistance 2: $1.2800
Resistance 1: $1.2750
Current price: $1.2596
Support 1: $1.2580
Support 2: $1.2445
Support 3: $1.2330

Comments: The euro remains under pressure against the dollar, trading below triangle continuation pattern top and 21-DMA currently at $1.2750. Break higher to negate the overall bear tone and will open the way to $1.2800/50 zone (50% of $1.3295 decline, November 13 high) and $1.2930 (November 10 high) ahead of $1.3110.
Closest support spotted at session low $1.2580. The sustained break below $1.2440 favours slide to October 27 and 28 lows at $1.2330 ahead of $1.2260 (50% of a huge $0.8560-$1.6030 move).

--UK Oct RPIX -0.3% m/m; +4.7% y/y Vs Sep +5.5% y/y
--UK Oct RPI -0.3% m/m; +4.2% y/y Vs Sep +5.0% y/y

Median estimate is flat m/m, +4.8% y/y vs +0.5% m/m, +5.2% y/y in September, which was a 16 1/2 year high.

Traders report that decent offers seen placed between $1.5090/00, with talk of stops placed through the figure. Failure to extend move above $1.5100 has prompted longs to pare back, take profit, with rate knocked back to $1.5030, but move only serves to attract renewed demand, lifting it back to $1.5045, currently trading back around $1.5030. Support noted toward $1.5000, stronger around the earlier mentioned technical support at $1.4980.

Nikkei +60.19 +0.71% 8,522.58
Topix +3.58 +0.40% 850.49
FTSE -100.81 -2.38% 4,132.16
DAX -152.97 -3.25% 4,557.27
CAC -109.44 -3.32% 3,182.03
Dow -223.73 -2.63% 8,273.58
NASDAQ -34.80 -2.29% 1,482.05
S&P -22.54 -2.58% 850.75
10yr Note -0.6600 -0.176% 3.684%
NYMEX Crude Oil -2.09 -3.66% 54.95
Gold -0.50 -0.07% 742.00
Japan stocks rose, led by drug and rail companies, after the nation's slip into recession lifted demand for companies relatively insulated against a slowdown, and oil's drop boosted the profit prospects of manufacturers.
Daiichi Sankyo Co., Japan's third-biggest drugmaker surged 5.4 percent, while West Japan Railway Co. gained 6 percent. Oji Paper Co., the nation's biggest user of high-sulfur fuel oil, added 2.4 percent after crude fell a second day. GS Yuasa Corp. surged 15 percent after the maker of batteries and lighting equipment reported a first-half profit gain. Mitsubishi Estate Co. tumbled 5.4 percent after the Nikkei newspaper said rents for Tokyo offices fell for the first time in six years.
The Nikkei 225 Stock Average rose 60.19, or 0.7 percent, to close at 8,522.58 in Tokyo, after losing as much as 2.9 percent and rising 3.6 percent. The broader Topix index added 3.58, or 0.4 percent, to 850.49, paring this year's slump to 42 percent. The total value of stocks traded on the Tokyo bourse was the lowest level since Sept. 1.


European stocks fell, extending the worst retreat in equities in more than two decades, after Japan unexpectedly slid into a recession and Britain's biggest business lobby said the U.K. slump may be deeper than predicted.
Banco Santander SA, Spain's biggest bank, and the U.K.'s HBOS Plc and BNP Paribas SA of France slipped more than 6 percent. HeidelbergCement AG tumbled 22 percent on concern the cement maker's owner may have to sell shares to help prop up an investment company. Tesco Plc slid 6.6 percent after JPMorgan Chase & Co. recommended selling Britain's biggest retailer.
Europe's Dow Jones Stoxx 600 Index lost 2.6 percent to 200.37 in London, pushing this year's decline to 45 percent. Japan's economy shrank in the third quarter, entering the first recession since 2001, and the business group said the U.K. economy will contract the most in almost three decades next year.

U.S. stocks fell, extending a two- week drop, as a record contraction in New York manufacturing and Citigroup Inc.'s plan to cut 50,000 jobs spurred concern the recession will deepen.
Alcoa Inc., the nation's largest aluminum producer, lost 8.1 percent after UBS AG cut its recommendation on the shares and the Federal Reserve Bank of New York's general economic index slid to the lowest level since records began in 2001. Citigroup, the fourth-biggest U.S. bank by market value, slipped 3.3 percent and is down 69 percent in 2008 after four straight quarterly losses. Exxon Mobil Corp. gained 2.4 percent as oil pared losses on forecasts for colder weather in the eastern U.S.
The Standard & Poor's 500 Index declined 0.6 percent to 867.7 at 1:23 p.m. in New York. The Dow Jones Industrial Average decreased 64.36, or 0.8 percent, to 8,432.95 and the Nasdaq Composite Index fell 0.7 percent to 1,506.03. Four stocks fell for every three that rose on the New York Stock Exchange.

Cantor Index are now calling the FTSE down 48 and the DAX down 16.

- Board initially suggested a 50 bps cut
- Governor proposed cut between 50 bps and 75 bps
- Board members noted that recent cuts, stimulus plan would cushion, not fully offset, deteriorating econ conditions
- Members felt it was advantageoues to quickly move monetary policy to neutral
- Members agreed that sizeable 75 bps reduction in rates was appropriate

High Low Close
EUR/USD 1.2740 1.2511 1.2648
USD/JPY 97.54 95.91 96.45
GBP/USD 1.5084 1.4656 1.4987
USD/CHF 1.2006 1.1887 1.1983

EUR/JPY 123.87 120.16 122.01
EUR/GBP 0.8567 0.8403 0.8435
GBP/JPY 146.50 140.70 144.56
GBP/CHF 1.8038 1.7562 1.7959

Change % Change Last
Nikkei +60.19 +0.71% 8,522.58
Topix +3.58 +0.40% 850.49
FTSE -100.81 -2.38% 4,132.16
DAX -152.97 -3.25% 4,557.27
CAC -109.44 -3.32% 3,182.03
Dow -223.73 -2.63% 8,273.58
NASDAQ -34.80 -2.29% 1,482.05
S&P -22.54 -2.58% 850.75
10yr Note -0.6600 -0.176% 3.684%
NYMEX Crude Oil -2.09 -3.66% 54.95
Gold -0.50 -0.07% 742.001

00:30 Australia RBA Meeting's Minutes (Nov)
05:00 Japan Leading Economic Index (Sep) 89,2 89,2
05:00 Japan Coincident Index (Sep) 100,8 100,8
09:30 UK RPI-X (October) Y/Y 5,5%
09:30 UK Retail prices (October) Y/Y 5,0%
09:30 UK Retail prices (October) 0,1% 0,5%
09:30 UK HICP ex EFAT (October) Y/Y 2,2% 2,2%
09:30 UK HICP (October) Y/Y 5,2%
09:30 UK HICP (October) 0,1% 0,5%
13:30 USA PPI excluding food and energy (October) Y/Y 4,0%
13:30 USA PPI excluding food and energy (October) 0,2% 0,4%
13:30 USA PPI (October) Y/Y 8,7%
13:30 USA PPI (October) -1,3% -0,4%
14:00 USA TICS long-term (September), bln 14,0
14:00 USA TICS (September), bln -0,4