Finance Highlights 2008 0219 - Laserfiche WebLink

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~Li ~ IN ^ M~ I'i ~^ U N ®~ CONSUMER PRICES puring November, the economy's headline inflation reading increased significantly to a 4.3% year-over-year rate. The increase was mostly due to a surge in energy prices. The year-over-year Core CPI (CPI less food and energy) rose at a 2.3% rate, higher than Odober's 2.2%. While Core CPI remains near the upper-end of the Federal Reserve's comfort range, the trend in the headline inflation data could be worrisomeforfuture inflationaryexpedations. RETAIL SALES During November, Retail Sales moved higher as the year- over-year growth rose to 6.3% from a revised growth rate of 5.0% in October. Over the last several months, Retail Sales trends are reflecting moderate consumer spending despite higher energy prices, the effects of the slowdown in the housing market, and the uncertainty in the financial markets. CIaEL)IT SPF2EA®5 lNIDER CHANDLER `y'^-'J - Asset ~J=, MANAGEMENT HOUSING STARTS Single-family housing starts declined by 5.4% in November, to a 0.83 million annual pace. This follows October's reading of 0.88 million. Building permits also declined, reaching the lowest level since June 1993. Recent data has supported the financial market concern that the decline in the housing market has notyet run its course. LABOR MARKETIS The December non-farm payroll employment report showed an increase of 18,000 jobs, which was much lower than consensus expectations. The six-month average for non-farm payroll employment has declined to 87,000 jobs. December's employment report has increased concern that the jobs market is weakening but market participants will continue to watch for signs that the housing slowdown is leading to employment weakness. ~ ~va~ Q ~~ ~ , ~ ~ a~ 3-month top-rated commercial paper 1.23 1.66 f,cY,; (0.43) 2-year AA corporate note 0.99 0.98 0.01 5-year AA corporate note 1.08 1.03 0.05 5-year Agency note 0.55 0.71 (0.16) Source: Bloomberg Data as of 11/31 /07 MIXE® Ii=CONC]I~IIC DATA P 1 9 1- ... u$ _ 1 ~ ~ 1 14~. - &..,,..« ®._ ......® ~ _SV6._ ~,.,,-,w„ ~ ~ ._ ~._~LfS~!< 'Y5 .., _. ~ tic Trade Balance (57.8) $Bln OCT 07 (57.1) $Bln SEP 07 (58.2) $Bln OCT 06 GDP 4.9% SEP 07 3.8% JUN 07 1.1 %SEP 06 Unemployment Rate 4.70% NOV 07 4.7% OCT 07 4.5% NOV 06 Prime Rate 7.25% DEC 07 7.50% NOV 07 8.25% DEC 06 CRB Index 358.71 DEC 07 339.84 NOV 07 307.26 DEC 06 Oil (West Texas Int.) $96.00 DEC 07 $88.71 NOV 07 $61.05 DEC 06 Consumer Price Index (y/o/y) 43% NOV 07 3.5% OCT 07 2.0% NOV 06 Producer Price Index (y/o/y) 7.2% NOV 07 6.1 % OCT 07 0.9% NOV 06 Dollar / EURO 1.46 DEC 07 1.46 NOV 07 1.32 DEC 06 Source: Boomberg ® 2008 Chandler Asset Management, Inc, An Independent Registered Investment Adviser The information contained herein was obtained from sources we believe to be reliable, but we do not guarantee its accuracy Opinions and forecasts regarding industries, companies, and/or the economy are all subject to change ai any lime, based on market and other conditions, and should not be construed as a recommendation. p~ye 3 CHANDLER ASSET MANAGEMENT ®9255 Towne Centre Drive, Ste 350 ®San Diego, CA 92121 ®800 3 1 7 4747 ~' chandlerassetcom