● Abe reaffirms Japan’s reflationary policies after election victory | Reuters
● China’s Central Bank Sees 2015 GDP Growth Slowing To 7.1% | MNI
● Germany Leading Index Drops In October | RTT
● Consumer Sentiment in U.S. Rises to Eight-Year High | BusinessWeek
● Oil Slump Blindsides Bulls That Wagered on Rout Ending | Bloomberg
● Hong Kong’s Final Protest Site Has Been Cleared | Time
● Elections in Greece may pose new threat for Eurozone | Guardian

US industrial production in November is projected to increase 0.3% vs. the previous month in tomorrow’s report from the Federal Reserve, according to The Capital Spectator’s median point forecast for several econometric estimates. The expected gain represents a moderate rebound after October’s 0.1% decline.
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The year is winding down, but before it slips away let’s review some of the more memorable titles that have appeared in the weekly Book Bits column that runs in this space each Saturday morning. Here are five economics/finance books from the 2014 archives that deserve a second look. I’ll follow up with five more next week. Happy reading!
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The Treasury market’s implied inflation forecast continues to fade, dipping to 1.70% yesterday (Dec. 11) — close to a four-year low, based on the yield spread for the nominal 10-year Note less its inflation-indexed counterpart. The slide looks worrisome, but appearances can be deceptive at a time when US economic growth is holding steady if not accelerating. Indeed, while economic activity decelerates/stagnates elsewhere, the US trend is gaining momentum, or so yesterday’s retail sales data (and last week’s bullish payrolls update) suggest. Meantime, the bear market in energy may end up boosting US growth on the margins in the months ahead while putting pressure on inflation.
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● House narrowly passes spending bill, averts government shutdown | Reuters
● Eurozone Industrial Output Growth Slows In October | RTT
● In Japan, Abe’s party is set for win, but economy remains a challenge | WaPo
● China’s Slowdown Deepens as Factory Output Growth Wanes | Bloomberg
● Oil closes below $60 for the first time since July 2009 | Fortune
● US Weekly Jobless Claims Edge Slightly Lower To 294,000 | RTT

US retail spending jumped substantially more than expected last month, the Census Bureau reports: up 0.7% in November vs. the previous month. That’s well above the 0.4% consensus forecast. The profile for consumption looks even stronger on a year-over-year basis. It all adds up to a strong signal for the holiday shopping season, and one that resonates in the wake of last week’s surprisingly potent November advance in nonfarm payrolls.
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The small-cap premium is one of the oldest return anomalies (or risk factors, if you’re so inclined) identified in the research literature. But after decades of analysis and mixed results, the idea that small company shares will outperform large caps also draws plenty of skepticism.
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● Spending Bill Hits Snags, but Congress Thinks It Can Avoid Shutdown | NY Times
● U.S. budget deficit shrinks in November | MarketWatch
● U.S. mortgage applications rise in latest week: MBA | Reuters
● German inflation rate confirmed at 4 1/2-year low in Nov | FT
● Italy Oct industry output falls, disappointing recovery hopes | Reuters
● Investors Sell Stocks as Oil Prices Keep Falling | WSJ
● France Nov Inflation Falls Back To Lowest Level Since 2009 | MNI

US retail sales are expected to rise 0.2% in tomorrow’s November report vs. the previous month, according to The Capital Spectator’s median point forecast for several econometric estimates. The median prediction reflects a slight deceleration in growth vs. the previous month’s 0.3% advance.
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● Job Openings Point to Sustained US Payroll Gains | Bloomberg
● Small-business owners show most optimism since 2007, survey finds | LA Times
● Long End Of The US Yield Curve Flattest Since Jan 2009 | GaveKal
● French Oct Industrial Output Falls Unexpectedly | RTT
● BoE’s Carney says UK rates will rise despite inflation dip | Reuters
● China’s falling inflation raises prospect of faster easing | Reuters