Consumer prices in the United States fell 0.1%

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The Senate is set to vote on a key motion that if approved could lead to enactment of a sweeping bank reform bill by the end of the week, but rejection of some Democratic provisions could cause a late obstacle to final passage. See full story.

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MARKETWATCH PERSONAL FINANCE
The global recession had largely muzzled inflation's bite, but actions being taken to cure the developed world’s economic ills could revive threats to bond investors and savers and spoil many Americans’ retirement plans

US retail sales fell in September by the largest amount in 2009

The Commerce Department said sales slid 1.5%, not as bad as expected, but the biggest drop since December last year.
Car sales dropped by 10.4% but when vehicles were stripped out, retail sales actually rose by 0.5%, better than the 0.2% which had been forecast.
Consumer spending makes up more than two thirds of US economic activity.
A late Labor Day holiday helped retailers last month because consumers purchased some items in September that they would normally have bought in August, analysts said.
'Expected'
The 1.5% drop in September's retail sales followed a 2.2% rise in August, which was revised down from an earlier estimate of 2.7%.
That came as demand for new cars surged in August as buyers took advantage of the final month of the government's incentives of up to $4,500 to trade in old models for more fuel-efficient cars.
The Commerce Department figures showed that sales in furniture stores jumped 1.4%, reflecting the rebound in the housing industry. Meanwhile, sales at general merchandise stores such as Wal-Mart and Target, rose 0.9%.
"Certainly the numbers were better than expected," said Scott Brown, chief economist at Raymond James Associates.
"You did see a big drop in vehicle sales as cash for clunkers expired, which was in line with expectations."

New York Late Money Rates

New York Late Money Rates ,,,,,,
Wall Street Journal ...........
Money Rates Monday, July 6, 2009 The key U. S. and foreign annual interest rates below are a guide to general levels but don't always represent actual transactions. Prime Rate: 3.25% (effective 12/16/08). The base rate on corporate loans posted by at least 75% of the nation's 30 largest banks. Discount Rate (Primary): 0.50% (effective 12/16/08). Call Money: 2.00% (effective 12/16/08). Commercial Paper: Placed directly by General Electric Capital Corp.: 0.21% 30 to 30 days; n.q.31 to 49 days; n.q.50 to 89 days; n.q.90 to 119 days; n.q.120 to 125 days; n.q.126 to 141 days; n.q.142 to 151 days; n.q.152 to 161 days; n.q.162 to 270 days. Euro Commercial Paper: Placed directly by General Electric Capital Corp.: 0.36% 30 days; 0.56% two months; 0.75% three months; 0.83% four months; 0.90% five months; 0.98% six months. Dealer Commercial Paper: High-grade unsecured notes sold through dealers by major corporations: 0.35% 30 days; 0.40% 60 days; 0.45% 90 days. Certificates of Deposit: 0.35% one month; 0.45% three months; 0.80% six months. Bankers Acceptances: 0.40% 30 days; 0.48% 60 days; 0.55% 90 days; 0.55% 120 days; 0.75% 150 days; 0.85% 180 days. Source: Tullett Prebon Information, Ltd. Eurodollars: 0.65% - 0.25% one month; 0.75% - 0.35% two months; 1.00% - 0.40% three months; 1.00% - 0.40% four months; 1.15% - 0.45% five months; 1.25% - 0.55% six months. Source: Tullett Prebon Information, Ltd. London Interbank Offered Rates (Libor): 0.30188% one month; 0.54813% three months; 1.03125% six months; 1.51375% one year. Effective rate for contracts entered into two days from date appearing at top of this column. Euro Libor: 0.66000% one month; 1.03625% three months; 1.26500% six months; 1.45375% one year. Effective rate for contracts entered into two days from date appearing at top of this column. Euro Interbank Offered Rates (Euribor): 0.684% one month; 1.048% three months; 1.268% six months; 1.456% one year. Source: Reuters. Foreign Prime Rates: Canada 2.25%; European Central Bank 1.00%; Japan 1.475%; Switzerland 0.51%; Britain 0.50%. Treasury Bills: Results of the Monday, July 6, 2009, auction of short-term U.S. government bills, sold at a discount from face value in units of $1,000 to $1 million: 0.190% 13 weeks; 0.285% 26 weeks. Tuesday, June 30, 2009 auction: 0.160% 4 weeks. Overnight Repurchase Rate: 0.23%. Source: Garban Intercapital. Freddie Mac: Posted yields on 30-year mortgage commitments. Delivery within 30 days 4.95%, 60 days 5.05%, standard conventional fixed-rate mortgages: 2.50%, 2% rate capped one-year adjustable rate mortgages. Fannie Mae: Posted yields on 30 year mortgage commitments (priced at par) for delivery within 30 days 4.932%, 60 days 5.027%, standard conventional fixed-rate mortgages. Merrill Lynch Ready Assets Trust: 0.05%. Consumer Price Index: May, 213.9, down 1.3% from a year ago. Bureau of Labor Statistics. Federal Funds: 0.313% high, 0.125% low, 0.150% near closing bid, 0.250% offered. Source: Tullett Prebon Information, Ltd. Federal-funds target rate: 0.000% (effective 12/16/08).

The Australian share market ended higher Monday amid growing expectations U.S.

Australia Shares End 2.4% Higher on US.The Australian share market ended higher Monday amid growing expectations U.S. Treasury will please investors with details of its plans to rid troubled banks of toxic assets.

The big local banks and miners led the S&P/ASX 200 up 2.4%, or 84.5 points, to 3550.3 despite the Dow Jones Industrial Average falling 1.65% Friday.

U.S. Treasury Secretary Timothy Geithner is expected to reveal a three-pronged program to deal with troubled assets on banks' books later Monday involving a series of public-private investments.

A senior trader at a large investment bank noted that DJIA futures had risen 1.7% in anticipation of Geithner's announcement.

"There are press reports circulating that it's going to be a pretty proactive plan of significant size," the trader said.

There is also mounting speculation that Japan is devising another national stimulus package, the trader said. Asian stocks rose in afternoon trading Monday, with the Nikkei up 2.5% and the Hang Seng up 3.1%.

Australian banking stocks all posted solid gains with Australia & New Zealand Banking Group up 4.8% to A$15.25 and Westpac Banking Corp. up 4.3% to A$18.95.

Market leader BHP Billiton added 3.5% to A$33.32 and rival diversified miner Rio Tinto surged 7.9% to A$50.53.

The senior trader said that in the short-term, there still seems to be momentum behind a recent two-week rebound in global equities. "But what we're finding is more clients would like to see the market consolidate for a while before continuing the recovery," he said. "But in these extraordinary markets, who knows."

Lisa Jarvis, a private client advisor at ABN AMRO Morgans in Sydney, said sentiment remains cautious, with the market still watching for signs of whether the U.S. stimulus and bailout packages are making a significant impact.

Also making news Monday, Oz Minerals requested a trading halt on its shares ahead of an announcement on regulatory approvals relating to the A$2.6 billion takeover offer for the struggling copper, gold and zinc miner by China Minmetals Nonferrous Metals Co.

President Barack Obama says economy is causing a lot of families "incredible pain and hardship

President Barack Obama says Economy causing many 'incredible pain' but the government is providing them help.
The president spoke to reporters in the Oval Office on Friday after getting an update from economic adviser Paul Volcker. Obama said his administration is working on both short-term help and long-term economic recovery plans. He says the capacity of American workers and industry is undiminished.


Obama Voices Optimism on the Economy
Obama said the goal is a new "post-bubble" economic model. He says the days of relying on an inflated housing market and maxed-out credit cards are over.

How will the Recovery Act work?
Very soon, the different agencies -- such as the Departments of Education; Health and Human Services; and Energy -- will decide who will receive award grants and contracts. Sometimes the money will go to a state government; other times, the funds will go directly to a school, hospital, contractor, or other organization. Agencies will then deliver that information to the Recovery.gov team. We will subsequently make the information available on Recovery.gov, and you will be able to track where the money is going. You'll be able to search by state or even by Congressional district; you'll be able to look up names of Federal contractors or other recipients of Federal dollars; and you'll be able to send in comments, thoughts, ideas, questions, and any responses you have to what you find. More from Recovery.gov.