Economic Data

- (RU) Russia Nov Industrial Production Y/Y: 1.9% v 1.9%e

- (CA) Canada Oct Int'l Securities Transactions: C$13.3B v C$10,0Be

- (US) Dec Empire Manufacturing: -8.10 v -1.00e

- (US) Oct Total Net TIC Flows: -$56.7B v +$4.3B prior; Net Long-term TIC Flows: $1.3B v $25.0Be

- (CA) Canada Nov Existing Home Sales M/M: -1.7% v -0.1% prior

- (PL) Poland Nov YTD Budget Level (PLN): -30.4BB v -34.1B prior; Budget Performance: 86.9% v 97.5% prior

- US equity indices are making modest gains this morning, with the S&P500 and DJIA up 0.4% in the early going and the Nasdaq up more than 0.5%. Over the weekend, there were reports that House Speaker Boehner offered to raise tax rates on Americans who make more than $1M and take the debt ceiling issue off the table in ongoing negotiations with the White House. Neither side has spoken yet this morning, with the media focus remaining on the Connecticut school shooting. European stocks are flat to down.

- FX trading has been subdued this morning. Germany's Bundesbank stated that it saw marked economic contraction in fourth quarter but did not believe the country would enter a recession as the period of economic weakness in Germany would end soon. USD/JPY continues to trading around the 83.75 area.

- Shares of Apple fell below $500 in pre-market trading this morning after Citi cut the firm to a hold from a buy. Citi warned that its buy rating was trading oriented, reflecting their expectation for a near term rally on strong iPhone 5 sales, but it now questions the strength of the iPhone 5.

- Sprint offered to buy the half of Clearwire's equity that it does not already hold for $2.97/shr. The deal is only slightly higher than a bid many minority shareholders said was too low days before. While Intel, Comcast and Bright House Networks have agreed to the deal, analysts point out that Sprint might have trouble with some other holders. After rising sharply last week, shares of CLWR fell 13% this morning to match the new Sprint offer.

- Joh. A. Benckiser plans to buy Caribou Coffee for about $340M in cash, just five months after it bought Peet's Coffee & Tea. Caribou Coffee has 610 outlets in 22 states.

Looking Ahead

- 11:00 (EU) ECB ember Constancio
- 11:00 (US) Fed's Stein on US economic outlook in NC
- 11:00 (US) Fed to purchase $4.25-5.25B in Notes
- 11:30 (US) Treasury to sell $32B in 3-Month and $28B in 6-Month Bills
- 11:30 (CY) Cyprus Fin Min Shiarly in EU Parliament panel
- 13:00 (US) Fed's Lacker
- 13:00 (US) Treasury to sell $35B in 2-Year Notes
- 18:00 (US) WTO conducts Trade Policy Review of U.S.