Daily Dispatches

Weak dollar will figure in OPEC's decision on production

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OPEC to take weak dollar into account

By Ghaida Ghantous and Karin Strohecker
Rtuers
Monday, December 4, 2006

http://news.yahoo.com/s/nm/20061204/bs_nm/oil_opec_dc_7

OPEC is worried by a fall in the dollar that is eroding member states' purchasing power and ministers will take up the issue when they meet next week to discuss new output curbs.

On Monday the dollar hit a 20-month low against the euro, punishing producers who sell their oil in dollars, when they buy goods and services from Europe.

U.S. believed happy with decline of dollar if it's 'orderly'

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By Jitendra Joshi
Agence France-Presse
Sunday, December 3, 2006

http://news.yahoo.com/s/afp/20061203/ts_afp/forexuspolitics_061203220206

The US administration appears unfazed as the dollar plummets on currency markets, giving a helpful trade boost during an economic slowdown, analysts believe.

But a danger lies in the dollar falling so far that it unleashes inflation, sparking retaliation by the Federal Reserve.

Goldman's top alumni wield White House clout

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By Stephanie Kirchgaessner and Ben White
Financial Times, London
Sunday, December 3, 2006

http://us.ft.com/ftgateway/superpage.ft?news_id=fto120320061956506824&pa...

America's corporate elite has long upheld a tradition of joining Washington's corridors of power for a new career. JPMorgan executives gave counsel to President Woodrow Wilson during the first world war. President John F. Kennedy asked Robert McNamara, a war veteran who had risen to the top ranks of Ford, to become secretary of defence in 1960.

Bloomberg's weekly gold trader survey quotes GoldMoney's and GATA's Turk

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Gold May Rise
for 3rd Week
as Dollar Slide
Spurs Demand

By Choy Leng Yeong
Bloomberg News Service
Monday, December 4, 2006

http://www.bloomberg.com/apps/news?pid=20601087&sid=adBzIdSVEjvo&refer=h...

Gold may rise for a third straight week on speculation a slowing U.S. economy will erode the value of the dollar, increasing the appeal of the precious metal as an alternative investment.

Treasury secretary polls industry leaders before China trip

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By Eoin Callan
Financial Times, London
Sunday, December 3, 2006

http://biz.yahoo.com/ft/061203/fto120320061053046778.html?.v=1

Hank Paulson, US treasury secretary, will on Monday begin a series of discussions with industry leaders to hammer out the Bush administration's policy towards China ahead of a high-level delegation to Beijing next week.

The former head of Goldman Sachs, an investment bank, will on Monday meet executives from manufacturing companies, including Procter & Gamble, before on Wednesday sitting down with financial services companies -- including Citigroup -- as well as those from other sectors.

William Pesek: Why Paulson faces disappointment in China

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By William Pesek
Bloomberg News Service
Friday, December 1, 2006

http://www.bloomberg.com/apps/news?pid=20601039&sid=aNlktVN07lps&refer=h...

If imitation is the highest form of flattery, then perhaps piracy is a globalization-age sign that you have made it in the world.

John Chan, a Shanghai-based business consultant, knows something about the phenomenon. Early this year, a businessman in Shanghai asked Chan to sign a copy of his 2003 book, "China Streetsmart." The 42-year-old was flabbergasted to see it was a pirated copy -- one made in China and bought in the U.S.

James Turk: The breakout gains momentum

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11:25a ET Sunday, December 3, 2006

Dear Friend of GATA and Gold:

GoldMoney's James Turk, editor of the Freemarket Gold & Money Report and consultant to GATA, reports that gold continues its rise not just against the dollar but also against most major currencies as the markets begin to realize the scope of the monetary debasement under way worldwide. Turk's new commentary is titled "The Breakout Gains Momentum" and you can find it in the "Founder's Commentary" box at the top left of the GoldMoney home page here:

Dollar's fall aids London's drive for financial supremacy

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By David Smith
The Times, London
Sunday, December 3, 2006

http://business.timesonline.co.uk/article/0,,8209-2483663,00.html

The dollar’s fall, which accelerated last week, will further boost the City of London in its battle with New York for supremacy in the financial markets.

London is already the biggest market for foreign exchange, foreign equities, international insurance, and international bank lending. This year it has handled a third more market listings than New York, $40 billion (£20 billion) versus $30 billion.

Market retreat will force shady deals 'out of the woodwork'

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Plunging Dollar Will Set
World Markets Reeling

Heather Stewart
The Observer, London
Sunday, December 3, 2006

http://observer.guardian.co.uk/business/story/0,,1962449,00.html

The slowdown in the US economy, which has sent the dollar into freefall over the past fortnight, will have devastating knock-on effects in markets around the world, analysts warn.

As the US slows and consumers in the world's biggest economy feel the buying power of the dollar in their pocket declining, global growth will be hit hard, economists say. The greenback took yet another turn for the worse on Friday, after a survey of the US manufacturing sector showed output declining for the first time in more than three years.

Aside from France, euro nations don't mind dollar's fall

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Dollar Falls Quietly;
Aside from France,
Euro Nations Seem
Little Concerned

By the Associated Press
via Baltimore Sun
Saturday, December 2, 2006

http://www.baltimoresun.com/business/investing/bal-bz.dollar02dec02,0,41...

BERLIN -- With the European economy on the upswing, companies and governments are shrugging off the dollar's renewed slide against the euro this week -- a phenomenon once dreaded as potential poison for the continent's many exporters. Companies appear to have made their peace with a stronger currency for the moment, especially in export champion Germany, which is helped by stronger growth at home, currency hedging, and increasingly globalized production practices.

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