China's National Bureau of Statistics disclosed that industrial output rose 5.4% in November compared to the same period last year. brbrIt is, however, the a title=output target=_blank href=http://news.xinhuanet.com/english/2008-12/15/content_10508111.htmsmallest increase since January 2001. /abrbrSort of ties into the falling electricity production and oil imports, doesn't it? br

China's General Administration of Customs reported that a title=oil target=_blank href=http://news.alibaba.com/article/detail/china/100029493-1-update%253A-oil-data%253A-china-crude.htmloil imports dropped/a to an average of 3.26 million barrels a day, a 17.3% decline from October. brbrThat type of drop in demand with drastically cheaper gas prices indicates that things are really slowing down in China.

Our outlook for the machinery sector is increasingly one of caution. We are beginning to see U.S economic weakness and the credit crunch negatively impact international markets.

Japan's machine orders have fallen for two consecutive months, with a huge 14.5% decline in August. China Petroleum & Chemical Corp., or Sinopec (SNP) plans to cut its oil imports for the fourth quarter of 2008, which portends of slower manufacturing activity ahead.

As foreign economies deal with weaker exports to the U.S and Europe, industrial customers are cutting back on capital spending. Equipment orders are decelerating in almost every end market -- from machines used in construction, infrastructure, agriculture and base metal projects.

Over the next 6-12 months, we believe the biggest potential problem area is global construction spending. Investors should realize the conditions that created the U.S. housing crisis existed in various markets outside the U.S. Excess liquidity and easy money played

...

Our outlook for the machinery sector is increasingly one of caution. We are beginning to see U.S economic weakness and the credit crunch negatively impact international markets.Japan's machine orders have fallen for two consecutive months, with a huge 14.5% decline in August. China's Sinopec (SNP) plans to cut its oil imports for the fourth quarter of 2008, which portends of slower manufacturing activity ahead.As foreign economies deal with weaker exports to the U.S and Europe, industrial customers are cutting back on capital spending. Equipment orders are decelerating in almost every end market -- from machines used in construction, infrastructure, agriculture and base metal projects.Over the next 6-12 months, we believe the biggest potential problem area is global construction spending. Investors should realize the conditions that created the U.S housing crisis existed in various markets outside the U.S. Excess liquidity and easy money

...

In the following interview, we discuss these stocks: Sinopec (SNP), Caterpillar (CAT), Terex (TEX) and Freeport McMoRan (FCX).

In uncertain economic times such as these, we think back to what we learned in school about companies that produce goods and services as opposed to those that do not. We sat down recently with Zacks senior analyst Mario Ricchio about what he expects from one such goods-producing industry, Machinery.

What is your current outlook for machinery stocks?

Our outlook for the machinery sector is increasingly one of caution. We are beginning to see U.S. economic weakness and the credit crunch negatively impact international markets. Japan's machine orders have fallen for two consecutive months, with a huge 14.5% decline in August. China's Sinopec (SNP) plans to cut its oil imports for the fourth quarter of 2008, which portends of slower manufacturing activity ahead.

As foreign economies deal

...

by Edward Hugh: Barcelona India is in the middle of a storm at the moment, there can be no doubt about that. But the important point to note is that this storm is not of India's making. The financial turmoil in a number of key developed economies, and above all the United States, is sending shock waves across the global economy, and as is normal, when the earth trembles, it is the most fragile who notice it most. India's economy may be fragile in the sense that it is very vulnerable to what is colloqially known as global risk sentiment, but it is not fragile in terms of being susceptible to having its growth trajectory knocked completely off course. India may be shaken, but her economy will not be broken. Emerging Market Bonds Emerging-market bonds had their worst week in four years this week as the deepening credit crisis raised global recession concerns ...

This post is a guest contribution by Niels Jensen*, chief executive partner of London-based Absolute Return Partners.

It is time to move on. Not that the crisis is over, by no stretch of the imagination. But it is not going to make one iota of difference if I join the blame game bandwagon. It is what it is. Allow me instead to focus my energy on what is likely to happen next. That is more productive and definitely more useful.

A can of worms We are dealing with a rather large can of worms. The lid is off and the worms are all over the place. Let’s focus on what these worms might be up to. For all the

...

by Edward Hugh: BarcelonaIndia is in the middle of a storm at the moment, there can be no doubt about that. But the important point to note is that this storm is not of India's making. The financial turmoil in a number of key developed economies, and above all the United States, is sending shock waves across the global economy, and as is normal, when the earth trembles, it is the most fragile who notice it most. India's economy may be fragile in the sense that it is very vulnerable to what is colloqially known as global risk sentiment, but it is not fragile in terms of being susceptible to having its growth trajectory knocked completely off course. India may be shaken, but her economy will not be broken.Emerging Market BondsEmerging-market bonds had their worst week in four years this week as the deepening ...

For the week, the Dow gained 1.8% (down 13.9% y-t-d) and the S&P500 increased 0.8% (down 14.8%). The Utilities rose 2.6% (down 14.8%), and the Morgan Stanley Consumer index gained 2.2% (down 5.1%). The Transports jumped 3.8% (up 11%), and the Morgan Stanley Cyclical index advanced 3.3% (down 13.2%). The small cap Russell 2000 added 0.2% (down 5.1%), and the S&P400 Mid-Caps increased 0.4% (down 8.1%). The NASDAQ100 was about unchanged (down 15.2%), while the Morgan Stanley High Tech index slipped 0.4% (down 15.6%). The Semiconductors lost 2.9% (down 21.2%). The Street.com Internet Index declined 0.3% (down 11%), while the NASDAQ Telecommunications index gained 1.7% (down 10.2%). The Biotechs gained 1.0% (up 3%). The financial stocks were mixed. With Lehman collapsing, the Broker/Dealers sank 11.6% (down 35.9%). Meanwhile, the Banks gained 3.2% (down 19.9%). With Bullion sinking $37, the ...

by Edward Hugh: Barcelona India's growth rate fell back in the second calendar quarter of 2008 (and the first quarter of the 2008/09 financial year), expanding at the slowest rate recorded in three years, as the Reserve Bank of India struggles to control record high inflation by applying tight credit conditions. Annual growth slowed to 7.9 per cent in the quarter of 2008 which ended on June 30, significantly lower than the 8.8 per cent rate reported for the January to March quarter. Growth momentum has obviously been slowing on tighter monetary policy and the adverse global environment. Higher interest rates, slower bank credit growth and higher oil and commodity prices are evidently now having a marked effect on activity levels in the Indian economy. However, in spite of the slowdown, the growth rate of Asia’s third largest economy remains strong, and there are very positive signs ...