Global News Overview

Due to the holiday period, the next Market Updates will be w/c 5th January 2009.

Week ended 12 December 2008

Key Economic News

US: The market closed up marginally, in what was a volatile week. The focus was on the continued discussions surrounding the bailout of the automakers, with the Senate failing to pass measures late in the week. It is now anticipated that the Bush administration will intervene, using funds from the previously approved Treasury program. Economic data continued to show deterioration in the economy, specifically in jobs numbers, while consumer confidence unexpected rose. Oil prices drifted up from their lows ahead of OPEC meetings, where cuts to production are expected.

Europe: European equities rebounded last week, as governments worldwide introduced fresh measures to combat the recession. The gains were pared, however, by massive job cuts and the US Senate’s rejection of the US$14bn bailout plan for carmakers.

Asia Pacific: Asian equities rebounded last week, as governments worldwide introduced fresh measures to combat the recession. The gains were pared, however, by massive job cuts and the US Senate’s rejection of the US$14bn bailout plan for carmakers.

Emerging markets: Emerging markets fell last week, led by Latin America, as negative economic data renewed fears of a global recession, despite aggressive interest rate cuts in Asia and Europe.