Pound hit high with improved retail sales

 

Pound sterling strike high against euro after the retail sales has picked up its pace in the economy. It created positive hopes after the sluggish performance of economy in winter. The rise in the Pound Sterling against euro from € 1.188 to € 1.195 was also due to prediction of Market forces that bank of England was prone to increase the interest rates in upcoming days.  The retail sales volume was improved by 1.4% after a week performance reported in the preceding months. The rise in the Pound Sterling was also due to the speculative activities in the market. 

Pound strikes a year high record against dollar

 

Pound sterling was closed above $1.63 mark on 1^st March 2011 which is seen to be a record broken in 13 months. Economist has given their views that UK has the tendency to raise rates faster than US. Increase in the rates were also influenced by the high rise in inflation rates which has caused the retail sales volume to decline in December which was also reported to decline due to climatic conditions.

Surprise hike in property market

 

Recent data revealed an unexpected increase in UK house prices, which has perhaps contributed to rise the pound at $1.633 earlier today being the strongest since January 2010. Traders in the currency market were expectant to buy pound from property markets.

Weak stock performance with increase in oil prices

 

Stock prices have suffered a decline as the oil prices in international market rises. The decline of stock performance and increase in the oil prices can totter the economic position which was picking up pace. Since last week reported figures oil prices has hikes to about 13% due to uproar across North Africa and Middle East. This hike has caused per gallon price of oil to be increased to 20 cents.

Overseas aid to be targeted healthier

 

International Development Secretary Andrew Mitchell has announced that overseas aid will be targeted to more deserved areas after it has been cut off from 16 countries which have been receiving UK funds. The countries which will be experiencing a cut off in the aid budget are Russia, China, Angola and Vietnam. These aid funds will be targeted more to the war affecting countries like Afghanistan and Somalia. British taxpayers were not willing to fund for agencies like United Nations Industrial Development Organization, UN-Habitat, the UN agency the international Labor Organization and the UN International strategy for Disaster Reduction as they were reported of poor performance. Aid funds will be more targeted towards the weak sectors of the economy like for ‘Save the children’ campaign where taxpayers are relieved that their funds have been utilized in the sectors for productive outcomes.

Retail bond market was praised by state minister

 

The London Stock Exchange’s Order book for Retail Bonds (ORB) was appreciated for making the bond market reachable for the retail investors and making it as simple as trading in the stock market. It has widened the horizon of investment by giving investors opportunity to invest in the UK firms in varying ways.

Aids would be more focused & BMA warns health reform plans as unethical

Government has proposed a new plan to provide aids to 5 countries. This would help to improve the poverty level in these 5 countries. Summary of the important events are as follows:

Aid Budget would be more focused to reduce poverty

A plan has been proposed by the government to discontinue the direct development aid to 16 countries however, some countries like Pakistan, Nigeria and Bangladesh would be given more aids and these aids will be more focused to improve the livings of the poor. One reason for this change in approach is that large portion of UK’s aid budget is not spent in the right way. 

The British Government would stop giving aids to 16 countries which includes countries like China, Vietnam, Iraq, Kosovo, Lesotho, Moldova, Angola, Bosnia, Cameroon, Cambodia, Burundi, Indonesia, Serbia and Russia. However, budget of 5 countries has been proposed to substantially increase. These 5 countries are Ethiopia, Bangladesh, Nigeria, the Democratic Republic of Congo and Pakistan.

As the government wants more transparency and accountability so that the purpose of these aids would be achieved and these funds would provide better results. According to this new plan, 30% of the UK aid would be given to war-torn and unstable countries by 2014. According to government this new approach would reduce the poverty level in these nations and it would also help in reaching the Millennium Development Goals by 2015.

Insurers set for sex discrimination ruling

The cost of car insurance for young women could be increased. It will be decided by the European Court of Justice that whether this act is a kind of sex discrimination or not and if it is then it should be prohibited.

The Association of British Insurers (ABI) has proposed that the average increase in cost of young women could be in the range of 25% to 50%. However, according to the estimation of a research published previous year men under the age of 25 were expected a 10% reduction in premiums on average.

Mile Williams, a renowned insurance broker said, “It's entirely certain that women's premiums will go up. I don't think there's any chance whatsoever that men's premiums will come down, And the reason for that is that men have more accidents and when they have accidents they're more expensive."

BMA has claimed Government Health reform plans as unethical

British Medical Association (BMA) has warned the government about the NHS reform programme that it is highly unethical. According to the Health Minister, Paul Burstow this criticism was a gross distortion of government proposals.  

Dr. Laurence  Buckman has claimed that this bonus system could distort the trust between the doctors and patients.

According to him, "We don't understand what the Quality Premium means. We don't understand where it will come from. We rather fear it will come out of our pay and be paid back to us if we do certain things. It appears that what we might actually be asked to do is to save money and if we save a certain amount of money we will receive some of our pay given back to us. That is something that is appallingly unethical. I don't believe that I should be saying to a patient 'you can't have treatment because that way I'll get paid'. I don't think any patient would sit down with me and have in their head the thought that I would only be being paid by withdrawing treatment from them. I'm not prepared to do that".

 

High-speed rail from London to Birmingham is still in debate

Many people believe that high speed rail should be initiated whereas many people think that this would waste the investment and not benefit the country. Also after severe winter season, the roads have been damaged and millions have to be spent by the councils to fix them.

High-speed rail consultation initiated by the Government

The government has started its consultation on the proposal to start a rail line from London to Birmingham. This new train would reduce the travelling time by almost 30 minutes. The government officials have claimed that the project would start in 2015 if the proposal has been approved. However, the opponents do not agree to start this high speed rail because they feel that it would waste £17 billion and instead of this project, the government should update the exiting West Coast mainline as that would be a better option.

From the time, the project has been proposed by government it has become a controversy as many people residing along the route have claimed that it would damage the environment.

According to Philip Hammond who is the Transport Secretary, this high speed line (HS2) would improve the UK economy by £44bn. According to Mr. Hammond, "HS2 will be a piece of national infrastructure which will bring benefits to Britain as a whole. Of course we will do everything we can to mitigate the impacts on areas like the Chilterns but projects like this have to be decided on the basis of the national interest and the overall net benefits it will bring to Britain."

There are several business leaders in UK who want this project to continue and some of the important names like CBI director-general John Cridland and former British Airways chief executive Willie Walsh are in favour of this project. However, Lizzie Williams the chairman of Stop HS2 group has described this plan as a waste of taxpayer’s money.

Millions spent to repair potholes in England

Millions have been spent by councils in England to repair the potholes after two severe winters, though many people have said that councils do not have an adequate amount of money to fix them.

According to the Warwickshire county council the estimated cost to repair the roads would be around £25 million to £30 million. On the other hand, Kent County Council said that they have to spend at least £250 million on roads to fix them.

British TV’s ban on product placement has now lifted

Now in UK, paid for references to promote a product or service is now allowed for the first time as the ban has been lifted. This would allow companies to promote their brands to be seen on British TV.  However, some leaders and the Church of England are against this change because they feel that it would damage trust in broadcasters.

To advertise any product or service, the telecom regulators have said that the placement of the product should be editorially justified and it should not be overly prominent. Also it was further added by the telecom regulators that this would not be permitted in news, current affairs programmes and in children’s programmes. Plus, alcoholic drinks and food with high amount of salt, sugar and fat would not be allowed as well.

Many big companies like Coca Cola and Apple pays millions of dollars to TV programmes and films to place their product name or logo to promote their brand. This is very common in countries like USA. The time when European Union removed this ban, many people raised concerns whether this should be allowed or not.

Oil Prices Pushed Down

February 25th 2010 proved to bring a relief for the world as oil prices were pushed down by an optimistic swing in the mood. Here is a summary of some of the major happenings of the business world on 25th February 2010:

Retreat in oil prices

An ease in oil price pressures occurred after the prices reached their two year record high on Thursday. The sharp gains were observed because of the rising unrest in Libya however high optimism about crude producers’ ability to counteract any deficiency in supply caused by Libya led to a decline in the prices.

After almost crossing the $120 mark, Brent crude was brought back to $112.65 per barrel whereas US crude was traded at $97.49 per barrel, a visible decrease from the $100 that it had reached on Thursday.

It was reported that statements made by Saudi Arabia and International Energy Agency (IEA) helped trigger the optimistic mood.

High food & fuel costs slow down deflation in Japan

Japanese deflation saw a deceleration as food and fuel costs rose in January. Consumer prices fell at a yearly rate of 0.6% if the fuel and food costs were excluded. Deflation continues to be a problem since the Japanese economy is still in its early stages of recovery.

Richard Jerram of Macquarie Group said that “The headline numbers are being distorted by commodity prices,"

"The underlying trend is not particularly encouraging...In general it shows deflation is moderating, but not going away."

Quite a few analysts believe that Japan’s central bank, the Bank of Japan, will not change its monetary policy anytime soon. According to the expectations, the interest rates will remain on a hold.

According to a forecast made by the Bank of Japan, the economy is expected to pick up pace later on in 2011 which will help in ending the present and long lasting deflation period.

Chinese telecom equipment maker welcomes formal investigation by US

After a US security panel rejected the takeover bid of American computer company 3Leaf systems by Chinese telecom company Huawei, the company said that it is open to a formal investigation by US authorities in an open letter on its website.

Concerns over the company’s military links have originated for the reason that its founder Ren Zhengfei is an ex-Chinese army office.

The company has denied having any ties with the Chinese government and military.

"Over the past 10 years, as we have been investing in the US, we have encountered a number of misperceptions" said the company in its letter.

Huawei bought 3Leaf for $2m in May 2010 however a review by the Committee of Foreign Investment in the USA said that the deal should not proceed.

Korea puts an $887,000 fine on Deutsche Bank

One of the largest fines by Korea’s stock exchange, KRX, was levied on Deutsche Bank for manipulation in the country’s stock market.

South Korean regulators have claimed that the staff of the bank plotted to force down the value of the stock index in order to profit illegally from it.

Deutsche Bank was banned by Financial Services Commission (FSC) from trading certain derivatives and securities. 

The bank stated that it was “disappointed” with the findings of the FSC.

Oil prices continue to increase with talks about succession of Steve Jobs

24th February 24, 2011 continues to see oil prices increasing with a mixed trend in overall business throughout the globe. Following are some of the major business happenings throughout the world:

ASIA WITNESS’S A NEW HIGH IN OIL PRICES

With the looming probability of the Middle East revolutionary movement affecting bigger oil suppliers, prices continue to climb amongst the Libya unrest.

Prices per barrel in Asia have hit their highest level in two and a half years with Brent crude rising by more than 2% to $113 per barrel whereas US light crude rose by approximately 1% taking the price per barrel to $99.19.

The skyrocketing oil prices made an impact on the Asian stock markets with trading reported to be mixed. A declining trend was observed in some of the major stock markets of Asia with Nikkei 225 index (Japan) going down by 0.9%, KOSPI (South Korea) declining by 0.7% and Singaporean, Australian and Indian markets also reporting a decline.

1 million barrels per production have been shut down according to an estimate made by Barclays Capital.

SUCCESSION PLANS AT APPLE

With Steve Jobs on his third medical leave, a proposal at the annual shareholder meeting was made by the Central Laborers Fund(CLF) as to who would succeed Steve Jobs.

The proposal was made by Jennifer O’Dell on behalf of the fund. The CLF represents 500,000 construction workers in the US and Canada.

Ms O’Dell while talking to BBC News said that they should have a realistic approach towards the matter of succession and have a plan.

Mr. Jobs revealed that he was diagnosed with pancreatic cancer in 2004. He took a medical leave for a liver transplant in 2009. Investors have been concerned about the company’s future since then since Mr. Job is seen as one of the primal factors to the success of Apple.

Ms O’Dell plans to re-file her proposal next year stating that “"If the company doesn't want out reach out to us and have a real discussion about this issue we will refile it again next year”. CLF has as many as 11,500 Apple shares worth $4m.

ANNUAL LOSS REPORTED BY RBS

A £1.13 billion loss was reported for the year of 2010. The loss is much bigger than what had been expected by analysts though as compared to the £3.6 billion loss made by the bank in 2009, and a £24.3 billion loss recorded in 2008, this loss can be looked upon as an improvement.

After bailing out the Royal Bank of Scotland in 2008, the government took over 84% stakes in the bank, becoming a major stakeholder.

The bank reported a profit of £12 million in the last quarter of 2010. Compared to the loss of £765 million incurred in the final quarter of 2009, a vast improvement in the financial performance of the bank can be noted.

8% DECLINE IN CASH BONUSES AT WALL STREET

New York State Comptroller Thomas DiNapoli reported that the 8% decline had taken cash bonuses for Wall Street bankers to an average of $128,530.

"Cash bonuses are down, but that's not an indicator of a weakness on Wall Street," stated Mr. DiNapoli. The facts and figures point to a 6% growth in overall compensation including stock awards.

An open criticism was made on Wall Street bankers in 2009, when news about a 17% increase in cash bonuses for bankers was made public. It must be noted here that 2009 was marked with financial troubles for institutions with many bailed out by taxpayers. 

Japan Report Trade Deficit and Sales of Wal-Mart Declining in USA

Another important day where strong economies like Japan reported trade deficit and oil crisis still continues to impact major businesses across the world. Summary of the major events are as follows:

JAPAN SURPRISES THE WORLD BY REPORTING A TRADE DEFICIT

Ministry of Finance data showed that weaker exports, as compared to Japan’s past records, to major markets has led to the first trade deficit in Japan in almost two years.

A stronger yen has reduced export demands with China overriding Japan to take the spot of the world’s second largest economy. The trade deficit was recorded to be 471.42 billion yen in January however with a 1.4% rise in exports; growth was expected to near 7% as per expectations of analysts.

Yoshimasa Maruyama from Itochu Corporation in Tokyo was of the opinion that despite of the exports quantity being weaker than expected, there is no denying that “the economy is emerging from a lull”. He anticipates that though slowly, exports will surely rise in the approaching months but the pace of economic growth would be slower than what was estimated earlier. 

LIBYA SITUATION PUSHES CRUDE OIL PRICES TO RECORDBREAKING LEVELS

Libyan leader Col Muammar Gaddafi’s refusal to quit combined with growing anti-government protests and unrest in the country; there have been concerns over the situation disrupting global oil supplies. This has consequentially led to skyrocketing oil prices marking their highest levels yet since October 2008.

Andy Lebow, a trader at MF Global in New York said that “The major underlying fear in the market is that these protests spread in the region to even larger producers like Saudi Arabia," The price for Brent crude has reached up to $106.23 per barrel. Analysts expressed their concerns that even a little hint of problems will send prices shooting upward.

VIETNAM STEPS UP TO FIGHT AGAINST RISING INFLATION

The State Bank of Vietnam has raised its reverse repo rate from 11% to 12% in efforts to counter inflation. Only a week earlier, the main interest rate had also been pushed up two percentage points to 11%. The country had also devalued it’s currency by 8.5% earlier this month. The State Bank is anticipating that this move will strengthen the Dong, Vietnam’s currency, and help in slowing down inflation. The rate of inflation was observed to be crossing the 12% mark in January.  

SLUMP IN PROFITS AT BARNES & NOBLE    

A decline in profits along with suspension in dividend payments has been announced by the largest bookseller in the United States. As compared to its performance in the previous year, a drop of 25% in net profits was observed for the three months ending of in January. The net profits were reported at $60.6 million. An 11% fall in shares was also observed after the results had been announced.

The bookseller continues with investing heavily in its Nook electronic book reader whereas the announcement of not making any sales or profits forecasts for the current quarter has also been made by the company.

WAL-MART ANNOUNCES DECLINE IN SALES IN THE U.S FOR THE CONSECUTIVE SEVENTH QUARTER

Wal-Mart continues to lose customers to cheaper rivals with continuing decline reported in sales for the seventh quarter in the United States. Strong profit figures were reported due to a boost in international sales and cost reduction. International sales were also benefited by exchange rate movements. However the company has lost customers to “dollar” stores in its home base, the United States. A 60% contribution was made by the US to the total sales of $419 billion by the Wal-Mart group.

GBPEUR/GBPUSD

The Pound weakened against the Euro yesterday, but rallied versus the U.S Dollar, after Bank of England policy maker Matin Weale said that the MPC should raise interest rates to curb inflation. Weale joined Andrew Sentance in voting to increase borrowing costs from the current record low of 0.5%, as UK inflation surged to 3.7% in December, the tenth month in a row that consumer prices have been above the government's upper limit of 3%.

In a newspaper report yesterday, Weale was quoted as saying there is a "powerful case" for a "modest rise" in interest rates in the UK. Significantly, Weale maintains this view, even after the UK economy sank into negative growth in the preliminary estimate for the fourth quarter, and his comments will spur speculation that the BoE will consider raising rates before the end of the year.....

Read more

GBPEUR/GBPUSD

The Pound rallied against the majority of the major currencies yesterday, consolidating above 1.16 versus the Euro and trading close to the 1.60 level against the U.S Dollar, as equities rose and global risk appetite improved. Accelerating inflation has rekindled speculation that the Bank of England will eventually need to lift UK interest rates from 0.5%, particularly since the BoE minutes on Wednesday revealed that another member voted for an increase in January.
The Bank of England face a difficult balancing act this year, with members concerned about the economic recovery and accelerating inflation. The Monetary Policy Committee has been split three ways on the best course of action to calm prices, but with the economy slipping back into recession, policy makers are unlikely to raise interest rates in the current climate....

Read more

GBPEUR/GBPUSD

The Pound rallied against the U.S Dollar and the Euro yesterday, bouncing back from the previous day's decline, after the minutes from the Bank of England's last policy meeting showed that one more member joined Andrew Sentance in recommending an interest rate increase from the current 0.5%. Policy maker Martin Weale, a relatively new member on the monetary policy committee, put forward his wish to increase borrowing costs, after a report last week showed that UK inflation has accelerated to 3.7%.
The governor Mervyn King said in a speech that consumer prices may breach the 5% barrier this year, but with the economy slumping back into a recession, the central bank faces a difficult balancing act in the months ahead. In stark contrast, MPC member Adam Posen, once again, voted to expand the quantitative easing program from £200 billion to aid the recovery, while the other six members adopted a "wait-and-see" approach.
The GDP data on Tuesday has dispelled any prospect of an interest rate hike before the fourth quarter, but the minutes yesterday may provide an underlying degree of support to Sterling, as at least one more member has joined Sentance in his campaign for higher rates. The minutes stated that "for most members, recent developments implied that the risk to inflation in the medium term had probably shifted upwards. For two members, the evidence suggested that the balance of risks was already sufficiently clear to warrant an immediate increase.".. Read more

GBPEUR/GBPUSD

The Pound declined against the U.S Dollar yesterday, the first slump in nine days, amid signs of persistent weakness in the UK economy and better-than-expected U.S housing data. The UK currency dipped against 13 out of the 16 most actively traded currencies, as the latest UK unemployment data showed that the jobless rate amongst 16-24 year-olds is increasing at the fastest rate since records began in 1992.
Ian Stannard, senior currency strategist at BNP Paribas SA, said "the dollar is really reacting positively to the stronger data out of the U.S." The Pound slumped 1% to 1.5850 by the close of trading last night, while the UK currency was 0.4% lower versus the Euro. Sterling had previously advanced 3.4% against the Dollar over a nine day period, its longest winning streak since the beginning of August.
Earlier this week, the latest inflation data showed that consumer prices accelerated to 3.7% in December, faster than the 3.4% forecast, and the Pound rallied on speculation that the Bank of England will be forced to raise interest rates to combat rising prices. However, with slowing economic growth and rising inflation, the UK economy could be bound for a period of stagflation and officials are likely to refrain from a rate hike until absolutely necessary. ...Read more

The number of people out of work and receiving benefits fell by 4,100 in December

GBPEUR/GBPUSD

The Pound declined against the Euro and the U.S Dollar yesterday, after a report on the UK labour market dampened speculation that the Bank of England will begin to raise UK interest rates. The report from the Office of National Statistics showed that UK jobless claims dropped in December to the lowest level in 21 months, while the unemployment rate fell, as Britain's economic recovery maintained its pace at the end of the fourth quarter.
The number of people out of work and receiving benefits fell by 4,100 in December from the previous month. The surprising improvement in labour market conditions is probably temporary with up to 350,000 public-sector jobs is expected to be lost this year. The Pound endured a mixed reaction in the market following the release of the report, with investors split on whether it is too soon for the Bank of England to begin tightening policy.
The government is hoping that private-sector companies keep creating jobs over the next four years, despite the recent increase in VAT. Officials are warning that the budget cuts will curtail the pace of the economic recovery, while the highest inflation rate in eight months is adding pressure on the Bank of England to begin tightening monetary policy.... Read more

GBPEUR/GBPUSD

The Pound rallied to the highest level in almost a month versus the U.S Dollar yesterday, while the UK currency continues to test resistance around 1.20 against the Euro, after a report showed that a measure of inflation accelerated in December. The report from the British Retail Consortium showed that shop prices rose 2.1% from a year earlier, marginally up from 2% in November and the report adds to speculation that UK interest rates will be increased from the current record low of 0.5%.
Suggestions that the Central Bank will begin tightening monetary policy is hugely supportive to Sterling and once policy makers announce no change in rates today, the UK currency may struggle for some momentum. A separate report earlier in the day showed that the UK trade deficit unexpectedly widened in November, as demand from abroad subsided.
The gap in trade increased to £8.74 billion in November, from £8.6 billion the previous month. The export component of the report did offer some hope, as a weak Pound makes UK products more attractive. The UK currency has gained 1% in value over the course of this week on a trade-weighted basis, with eyes on the Bank of England rate announcement this lunchtime.....Read more

GBPEUR/GBPUSD

The Pound declined for a second day against the U.S Dollar, slipping back under $1.55, while the UK currency also lost ground versus the Euro, after UK service industries unexpectedly contracted in December for the first time in more than 18-months. The slump in service sector growth follows a separate report earlier in the week from the Chartered Institute of Purchasing and Supply, which also showed that construction had slipped into negative territory in December.
The reports combined show that the UK gross domestic product would have lost roughly 0.3% in the fourth quarter. The aneamic growth rate in the UK would lead to speculation over a second recession and ultimately suggestions that the Bank of England will need to extend bond purchases beyond the current level. The data yesterday was much worse than expected and the Pound declined against almost all of the 16 most actively traded currencies. ...Read more

The Pound declined for a second day against the U.S Dollar

The Pound declined for a second day against the U.S Dollar, slipping back under $1.55, while the UK currency also lost ground versus the Euro, after UK services industries unexpectedly contracted in December for the first time in more than 18-months. The slump in service sector growth follows a separate report yesterday from the Chartered Institute of Purchasing and Supply, which also showed that construction had slipped into negative territory in December.
The reports combined show that UK gross domestic product would have lost roughly 0.3% from the third quarter. The aneamic growth in the UK would lead to speculation over a second recession and ultimately suggestions that the Bank of England will need to extend bond purchases beyond the current level. The data this morning was much worse than expected and the Pound declined against almost all of the 16 most actively traded currencies....read more

GBPEUR/GBPUSD

The Pound rallied above 1.56 against the U.S Dollar yesterday, after a report from the Bank of England showed that UK mortgage approvals unexpectedly increased in November. Sterling was up 0.7% from the low of the day and strengthened 0.6% versus the Euro, as lenders granted 48,019 loans to buy property in November.
Elsewhere, the Pound also received a much-needed boost, as a report from the Chartered Institute of Purchasing and Supply said that a gauge of UK manufacturing expanded at the fastest pace in 16-years in December. A weak Pound has increased demand for UK exports, suggesting that the economic recovery remained on track as 2010 drew to a close.
Hetal Mehta, an economist at Daiwa Capital Markets Europe, said that "the manufacturing sector has long been expected to lead the recovery on the back of a weaker exchange rate. 2011 could well be the year that this expectation becomes a reality." New orders also rose at the fastest pace since May, led by the increased demand in UK exports....read more

GBPEUR/GBPUSD

Following on from last week, the Pound bounced back against the U.S Dollar for the first day in three days on Thursday, as an improvement in global risk appetite continued with oil prices reaching the highest level in over two years, reducing the demand for the Dollar as a haven. A lack of demand at the U.S Treasury auction also reduced demand for the U.S currency, which weakened from a near-four month high against the Pound.
The UK currency remained relatively unchanged against the Euro, trading around 1.16 for the majority of the session. The Pound found support close to $1.5350 against the Dollar and advanced strongly to a high above $1.55 later in the U.S session. The UK currency gained support primarily from a weaker Dollar, as fundamental confidence remains fragile. There was also some evidence of corporate year-end demand for Sterling with some increase in fund weightings.....read more

GBPEUR/GBPUSD

Sterling deteriorated against the U.S Dollar during trading yesterday breaking key support level at 1.5550, trading down towards a low of 1.5375 on interbank. Sterling also deteriorated against a basket of major currency pairings following the news of a 0.1% downward revision to Q3 GDP growth in the UK.
The adjustment in itself was minimal, however at the same time it has increased concerns over the strength of the economic recovery and raised questions over whether the UK economy will be able to remain resilient in the face of fiscal tightening next year. Paul Fisher, a member of the Monetary Policy Committee (MPC) has been quoted to suggest that the UK could face a quarter of negative growth next year. In a statement yesterday evening Fisher also suggested that interest rates in the UK could reach a 'normalised position' of 5% in 2011.... read more

GBPEUR/GBPUSD

The Pound rallied for the first time in three days against the Dollar and the Euro, after a government report showed that UK retail sales increased for a second successive month in November, while consumer price expectations also rose. Sterling bounced back from a low of 1.5550, a key area of support, to 1.5630 in London and the Pound also reached a high of 1.18 versus the Euro, up 0.6% on the day.
Sales climbed 0.3% from October, when they increased 0.7%, and the Pound stopped the rot, albeit temporarily, as the report gave an indication that the Bank of England will need to start thinking about higher interest rates to combat inflation. Sterling has lost 1.5% in the past week on concern that British banks face exposure to the European sovereign debt crisis and the economic recovery is losing momentum with house prices falling and unemployment up....read more

GBPEUR/GBPUSD

Following from last week, the Pound remained lower against the U.S Dollar, trading back under $1.58, after the Bank of England decided to maintain emergency stimulus measures at the current level and keep interest rates at a record low of 0.5%. The UK currency actually declined against 13 out of the 16 most actively traded currencies, after a report showed that UK house prices continued to fall in November.
Although the UK economy has shown a somewhat remarkable resilience over the past quarter, the key components are beginning to slow. Manufacturing unexpectedly accelerated to the fastest pace in 16 years, while consumer confidence slipped to a 15 month low following the severe public spending cuts. The decision from the Bank of England was widely anticipated and should be fairly neutral for the Pound.... read more

Turkey, the economy continues growth


Increased production and investments continue to give their effect in the economy. The latest good news came from the Turkish Statistical Institute.
According to official figures the Turkish economy in the third quarter of the year grew by 5.5 percent.Gross National Income While this growth was realized in the figure of approximately 14 billion euros.
But growth for the 9-month period of the year amounted to 8.9 percent. State Minister and Deputy Prime Minister, Ali Babacan, in a statement made on the issue warned that these figures are the highest compared with European countries and the OECD, and added that at the end of the year will achieve a faster higher growth than projected medium-term program of government.

Credit to Ireland the market confidence returns. Finacial News, Currency Exchange, Money Converter - MoneyEX

Credit to Ireland the market confidence returns. Finacial News, Currency Exchange, Money Converter - MoneyEX

Spain next victim of economic crisis. Finacial News, Currency Exchange, Money Converter - MoneyEX

Spain next victim of economic crisis. Finacial News, Currency Exchange, Money Converter - MoneyEX