KISS News

1. It looks like Vladimir Putin is reacting to US criticism of what he considers interference in "Russian internal affairs". He has adopted an almost pro-Iran,  pro-Syria position at the UN and to top it off,  much to the discomfort of Washington, Russia and Venezuela are developing an ever cosier bilateral relationship. Russia’s state-run oil giant Rosneft announced a $2.6bn deal today to develop Venezuela’s extra-heavy crude oil reserves in the Orinoco.


2.FT: Is Turkey heading for a hard landing? That seems a strange question to ask on the day it reported growth of a thundering 8.2 per cent in the third quarter year-on-year. But domestic demand growth contracted sharply at a time when export markets are about to face big hit. With the central bank in tightening mode as it struggles to finance the world’s second biggest current account deficit, Turkey has its work cut out.

3.For anyone bummed out about the United States' dependence on foreign oil, try this forecast on for size: The U.S. is on track to be a net exporter of petroleum products this year for the first time in 62 years -- and yet, domestic gas prices remain at or close to record highs for this time of year. The reason? To put it simply, Americans are relying on less, while emerging markets are demanding more.  Tom Kloza, chief oil analyst at the Oil Price Information Service: “Instead of that product backing up and depressing prices, it’s being sent to other countries,”


4.Central banks are ramping up their gold buying as they seek to diversify their reserves away from the dollar and other beleaguered currencies. South Korea bought gold for the first time in 13 years, the latest central bank seeking to reduce dependence on the U.S. dollar. South Korea became the latest government to disclose a big bullion purchase, saying Tuesday that it recently bought 25 metric tons - more than doubling its holdings to 39 metric tons. Mexico, Russia and Thailand have also been major buyers in 2011.


5.For the second time in less than a month, the Indian rupee has hit an all-time low against the dollar, at Rs 52.885. The flagging currency’s low point came soon after the release of data revealing that industrial production had contracted a staggering 5.1 per cent in October. The rupee is Asia’s worst performing currency this year, having depreciated around 15 per cent since July amid a faltering Indian economy beset by persistently high inflation, and widening trade, fiscal and current account deficits, and foreign outflows.


6.Latvia's largest bank is scrambling to contain a run among depositors gripped by fears of the bank's imminent collapse. The panic among Swedish-owned Swedbank's depositors began Sunday after rumors spread that the financial institution was facing legal and liquidity problems in Estonia and Sweden.Swedbank's Latvian chief Maris Mancinskis on Monday called the rumors "absurd." COMMENT: What else could he say.....


COMMENT: Looks like all the BRIC (Brazil, Russia, India, China) countries are struggling. Adding that to Europe and the US debt paralysis, does not bode well for the world economy. Despite all this the markets do not appear to be unduly worried. Keep an eye on the Shanghai Stock Exchange, struggling to hold in the 2300 support area. At the end of the day the economic world is a great big melting pot.


TECHNICAL COMMENT: The DOW now on a third attempt to break up past the 12200 resistance area. Failing this we can expect a sharp downturn. Strong support area at 10000-10500.

Have a great week