Before the Bell 09/12/2008

[0:00] ..." Joining us is double BBC financial editor Dave Caruso good morning on Friday category or. We've got a little bit coming up this morning on retail sales already in wholesale inflation"...

[0:13] ..." frankly are given that the good news let's start with that the producer price index actually had a big drop in inflation so if you look at what happened the last month. Prices failed felt for the"...

[1:01] ..." sales were off to bits are kind of the same reason lower gas prices so. They were down pretense that the percent for -- good -- foreign direct. Our exports. The legacy is many experts expected"...

[1:56] ..." getting worse with the we started the week with city Mae and Freddie Mac and then Lehman unfortunately is it's kind of being the poster child of what's going on with investment banks there. Are tons"...

[0:00]" Joining us is double BBC financial editor Dave Caruso good morning on Friday category or. We've got a little bit coming up this morning on retail sales already in wholesale inflation tell us with the markets thing."

[0:11]" It's a mixed to negative quite frankly are given that the good news let's start with that the producer price index actually had a big drop in inflation so if you look at what happened the last month. Prices failed felt for the wholesale and that's down nine tenths of the percent. And to take out the wild energy prices and food prices eventually have to tens of percent so that's that's that organized. When you're looking at where the prices are and a lot of that certainly has to do with the energy price drops. But before we can wave the flag of victory guess inflation -- keep in mind that last month. I would still up one point 2% in the last twelve months it's been up over nine point 6% -- what happens but you know at least the trends in the right direction despite the fact that we do have. Hurricane I'd go to you know kind of looking for a bullseye and fortunately got a Texas coast -- reasons. And production facilities so. We had -- retail sales not quite the good there either sales were off to bits are kind of the same reason lower gas prices so. They were down pretense that the percent for -- good -- foreign direct. Our exports. The legacy is many experts expected about four tenths of a percent on the positive side so we met by a pretty wide margin and hope that they also lowered. Last month's numbers under that revisions so. Last year are all year until pearl pearl one point 6% retail so also certainly not robust and the price capitalism processor one point 9% biggest in about a year or so here a little bit but few minutes from -- University of Michigan consumer sentiment numbers -- seeing -- feeling that. After 300 -- yesterday were starting with a little swing this morning and so on the -- so this is now two point seven doubt that 96 right now. -- has their -- seventeen and it happened -- cycles. -- about a -- you want to -- two or --"

[1:54]" Now -- and particularly those -- getting worse with the we started the week with city Mae and Freddie Mac and then Lehman unfortunately is it's kind of being the poster child of what's going on with investment banks there. Are tons of rumors going around right now what's going to happen to a woman. Is this going to be pierced and Stearns number two so that the -- limited to -- big diamond. If you -- over those we can resolution to see what happens in the bigger -- it are looking into the room to be acquired by -- Bank of America. And Barkley so that a lot of speculation going on those interest is just a few minutes ago also activity that a statement that there will be no government money going on the table so. That's going to make it harder for deal to happen -- noted going to bat from a little bit so. It's what they have Lehman pistol under there's not a superlative that's not going to be good for the markets -- as we look at things so. We'll see what happens here I think the feeling is that Lehman attacked and six months. Since the Bear Stearns incident the kinda get this thing I think the markets are finally saying. It's time to clean up the mess you've had enough time right now shares are down 10% but again looking at a it doesn't seem to be a matter of capital right now it's a matter of people are afraid that they're going to take the money and ever run on the banks and respect so we'll see what happens today and if we're going to be -- more about sure."