Good morning New York,
FT ALPHAVILLE
War! Inflation! Bull markets!: Dan picks up on Josh Brown's "war is good for the economy because of government spending" chart, but argues it's more that wars tend to fuel inflationary growth due to the windows they break in the process, than due to the money spent by government.
NEWS
S&P has downgraded The Netherlands, stripping the country of its triple A rating. The agency cited weakening growth prospects for its decision to downgrade the country (Financial Times).
Bumi, the London-listed coal miner, has moved a step closer to unwinding its troubled relationship with Indonesia's powerful Bakrie family. The group confirmed financing had been arranged for Samin Tan, chairman, to pay $223m for the Backries 24 per cent stake in the company (Financial Times).
UK house prices rose at the fastest annual rate in more than three years in November, according to a survey from Nationwide. The results came a day after the Bank of England cut its support for mortgage lending in the UK amid anxiety over a surge in house prices (Wall Street Journal).
US crude oil falls to record discount: This week US benchmark West Texas Intermediate crude fell to a five month low of $91.77 per barrel, almost $20 per barrel less than the global marker Brent. (Financial Times).
Euro-area unemployment unexpectedly declined in October in a sign that a nascent recovery is starting to show its effect on the labor market. The jobless rate fell to 12.1 percent in the 17-nation economy from a record 12.2 percent in the prior month (Bloomberg).
Markets: European bourses were opening on a tentatively positive note after inheriting a mixed session in Asia and as traders looked to see whether Wall Street could advance further into virgin territory. The dollar was softer, gold a bit stronger, while Treasury yields were nudging higher as industrial commodity prices edged up. US financial markets were shut for Thanksgiving on Thursday and the New York Stock Exchange will be open for just half a day on Friday. Index futures suggested the S&P 500 would nudge up 2 points to 1,809, on course to end the week at a fresh record having risen 27 per cent in 2013. The FTSE Eurofirst 300 was advancing 0.1 per cent with the FTSE Asia Pacific index up a similar amount, leaving the FTSE All-World holding at its best levels since Christmas 2007. (Financial Times)
