Some analysts were surprised that, given the huge rally in equities, the dollar didn’t take more of a beating, especially given that the buck’s rally in recent months has been largely taken to be a flight to safety.

“The fact that the dollar held up despite the surge in optimism supports our view that it’s no longer just about the safe haven flows for the dollar,” said currency analysts at Brown Brothers Harriman.

Fed Chair Bernanke did his part to happy up faces by saying, in a speech to the Council on Foreign Relations, that major financial institutions will not be allowed to fail given the fragile state of financial markets and the global economy.

Other news of the day was not so pretty, as wholesale inventories slumped 0.7% in January, and wholesale sales fell 2.9%.

And hiring plans by U.S. employers for the second quarter dropped to a record low, according to a private survey by Manpower Inc. (NYSE:MAN), the world’s second-largest provider of temporary workers.

Manpower’s seasonally adjusted employment gauge for April through June plunged to minus 1 from 10 in the first quarter, the first time the measure has ever gone negative.

Source: Dollar Slips

• European Aeronautic, Defence & Space Co. NV (PINK: EADSY), parent company of Airbus SAS, announced yesterday (Tuesday) that it would shift production operations to non-European Union countries such as Tunisia in an effort to cut costs, Bloomberg News reported. “We’re planning to produce basic parts in Tunisia, while research and production of more sophisticated parts and composites would be in Europe,” EADS spokeswoman Gaelle Pellerin said yesterday, confirming comments made by Chief Executive Officer Louis Gallois.

• McDonald’s Corp. (MCD) reported yesterday (Tuesday) that same-store sales increased 8.5% in the month of August as cash-strapped consumers took advantage of the fast food chain’s value menus. “McDonald’s does well in bad economies because people trade down,” John Kornitzer, who oversees $5 billion at Kornitzer Capital Management, told Bloomberg News.

• Reynolds American Inc. (RAI), parent of R.J. Reynolds Tobacco Co., announced yesterday (Tuesday) that it plans to reduce 10% of its staff as part of a restructuring program to realign its brands. The bulk of the cuts will come from the second-largest U.S. tobacco company’s Winston-Salem, North Carolina headquarters, The Associated Press reported.

• The U.S. Justice Department has hired Stanley Litvack, the department’s antitrust chief during the Carter Administration, to consult on a probe of an advertising deal between Google Inc. (GOOG) and Yahoo! Inc. (YHOO). “We have been informed that the Justice Department, as they sometimes do, is seeking advice from an outside consultant, but that we should read nothing into that fact,” Yahoo said in a statement, Reuters reported.

• Google Inc. (GOOG) and two other partners, cable television magnate John Malone and HSBC Holdings PLC (HBC), have announced plans to bring internet access to 3 billion people in Africa and other emerging markets around the world with the launch of at least 16 satellites. So far, each partner of the “O3b” (Other 3 billion) venture has contributed $20 million into the project. The satellites should be operational by 2010, Reuters reported.

• The National Association of Realtors said yesterday (Tuesday) that its seasonally adjusted index of pending U.S. home sales fell 3.2% to a reading of 86.5 in July from an upwardly revised June reading of 89.4. Home sales are considered pending when the seller has accepted an offer, but the deal has not yet closed.

• Staffing services company Manpower Inc. (MAN) said yesterday (Tuesday) that its seasonally adjusted net employment outlook fell for the fourth consecutive quarter, reaching a level of 9 – down from 12 last quarter and 18 a year ago. The index measures the difference between employers who plan to add jobs and those who expect to cut them.

• The federal government will run a near-record deficit of $407 billion this year Congressional Budget Office said yesterday (Tuesday). The deficit will probably reach a record $438 billion next year and could go substantially higher after the government’s seizure of Fannie Mae (FNM) and Freddie Mac (FRE).

Source: Global Investing Roundups Wednesday, September 10th, 2008