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Retail sales in the USA rose 1.4% in October, much better than a gain of 1.0% economists expected, the Commerce Department reported on Monday. Last month, auto sales jumped 7.4%, while excluding autos, the retail sales in October would rise just 0.2 percent, the weakest showing since a 0.5 percent drop in July. Of note the filing station sales were flat, but excluding gasoline and auto sales, other retailers sales increased 0.3% last month, the 3rd consecutive gain. Consumer spending, which accounts for about 70% of US economic activity, is a broad measure of economic activity. Read more

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Crude Oil prices gained over 3% Monday, as the major US market indices rallied and touched a new 2009 high. Light, sweet Crude Oil for December delivery rose US$2.55, or 3.3%, to settle at US$78.90 bbl on the New York Merc. US stocks rose, with the DJIA surpassing 10,400 during the session, as retail sales rebounded more than expected in October, giving Crude Oil and Gold a healthy boost North. Meanwhile, the USD fell against a basket of currencies, helping commodities to extend gains In London, Brent Crude for January delivery gained US$2.45 to settle at US$78.76 bbl on the ICE Futures exchange. Read more

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Warren Buffett, who agreed to buy Burlington Northern Santa Fe Corp. in his biggest takeover, told Charlie Rose in a interview on PBS last week that the railroad’s results in the next 100 yrs will justify the US$26B bid and that the RR was “not a bargain.” “It’s a good asset for Berkshire to own over the next century,” Buffett said in an interview with Charlie Rose broadcast yesterday on PBS. “You don’t get bargains on things like that. It’s not cheap.” Mr. Buffett will borrow about US$8B and risk Berkshire’s AAA credit rating at Standard & Poor’s to buy the railroad in what he calls an “all-in wager” on the future of the country’s economy. The stock-and-cash bid, announced on November 3, values Fort Worth, Texas-based Burlington at US$100/shr, 31% more than its closing price the prior day. “It was an opportunity to buy a business that’s going to be around for 100 or 200 years that’s interwoven with the American economy in a way that, if the American economy prospers, the business will prosper,” Buffett said. Read more

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US President Obama announced Thursday that the White House will hold a job forum in December, acknowledging high unemployment is one of the “great challenges” facing his administration. Obama said that over the past 10 months, the government has taken bold steps to break the back of this recession. The US economy grew 3.5% in the Q-3 after four consecutive quarters of contraction, but unemployment has continued to climb. “The economic growth that we’ve seen has not yet led to the job growth that we desperately need,” and millions of Americans “are desperately searching for jobs,” Obama said before departing on a week long trip to Asia that ends on Nov. 19. Obama reaffirmed that unemployment, usually a lagging indicator, will improve slower than the economic growth. “Given the magnitude of the economic turmoil that we’ve experienced, employers are reluctant to hire,” he said. Read more

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The US federal deficit hit a record US$176.4B in October, according to a US Treasury Department Report Thursday. The budget imbalance outpaced economists’ expectation of US$150B. The deficit for Y 2009 fiscal year, which ended on Sept. 30, set an all-time record in USD terms of US$1.42T tripling last year’s record. Treasury Secretary Tim Geithner said last month that the skyrocketing federal deficit was inherited from the George W. Bush administration. Besides, it was a result of the government’s actions to tackle the worst economic recession since the Great Depression of 1930s. The US administration has launched a US$787B stimulus bill to boost the economy and has spent another US$700B to stabilize the financial system since President Obama took office at the beginning of the year. Experts worry the federal deficit would be unsustainable if the government did not impose fiscal discipline. “The president recognizes that we need to put the nation back on a fiscally sustainable path,” White House Budget Director Peter Orszag said. But critics argue that the government has not yet taken the problem seriously. Read more

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Luxury auto maker Mercedes-Benz has entered the premium used-car market with its new StarElite Pre-Owned Program, in a bid to garner more market share and support its businesses in China. StarElite offers multi-brand trade-in, certified pre-owned vehicles and premium after-sales service, in a transparent, reassuring, and convenient one-stop shopping experience, the newspaper said, citing Bjoern Hauber, general manager of sales and marketing, Mercedes-Benz (China) Ltd. StarElite facilities will be available in 11 cities and 15 showrooms. MBZ intends to add another 10 to 15 StarElite dealerships next year, and going forward, it plans to have StarElite pre-owned vehicle showrooms at all its dealerships, according to Hauber. He expected used-car sales to cross 3 million units this year and grow further in the next few years. Read more

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