US GDP Contracts 0.5%

Wed, 24 Dec 08 06:00 am

The US economy contracted 0.5% in the third quarter sending global equity markets lower yesterday. The US accounts for 25% of global GDP and economic contraction there has significant implications for global market confidence. Otherwise, market movement is limited due to the holiday period.

Darling's PBR Boosts UK Markets

Tue, 23 Dec 08 06:00 am

Darling's Pre-Budget Report was released yesterday, detailing a £20 billion government plan to stave of deep recession by cutting taxes and increasing government spending in the short term. The Report was met with criticism by the opposition for its 'eye-watering' figures, as government borrowing is set to reach £118 billion next year.

UK GDP contracts 0.6%

Tue, 23 Dec 08 06:00 am

GDP figures this morning show a 0.6% contraction in the UK economy for the third quarter and new mortgage approval figures have declined to 17.773k for November. US equity markets have weakened after the S&P index labelled General Motors with a 'high likelihood' of bankruptcy.

$17.4 billion for US Automobile Industry

Mon, 22 Dec 08 06:00 am

The announcement of a $17.4 billion rescue package for the US automobile industry sent the US Dollar and equity markets higher on Friday. Despite bouncing from all time lows against the Euro, Sterling remains weak in the run up to third quarter GDP statistics released tomorrow and Japan has announced the largest export sector contraction on record.

Euro Rebounds as ECB Speaks Out

Fri, 19 Dec 08 06:00 am

The Euro rebounded yesterday from its 6 month low against the Dollar as ECB executive claims talk of interest rate cuts is premature.

Japan cuts rates to 0.1%

Fri, 19 Dec 08 06:00 am

The Japanese Central Bank slashed interest rates to 0.1% yesterday and the Pound slid further towards parity, hitting 1.0464 against the Euro as official figures revealed the extent of government budget deficits in the UK.

Pound nears Parity

Thu, 18 Dec 08 06:00 am

Sterling continued its decline against the Euro yesterday after the MPC minutes revealed a 9-0 vote in favour of a 1% base rate reduction. Labour market data in the UK revealed a 0.2% rise in the official unemployment rate, taking it to 6% for October and the Pound continued to plunge towards parity with the Euro.

Fed Slashes Rates to 0.25%

Wed, 17 Dec 08 06:00 am

The Federal Reserve slashed interest rates to an unprecedented 0.25% yesterday, making the current base rate the lowest in US history. The decisive reduction was announced amid further 'quantitative easing' measures to stimulate the economy and ward off deepening recession. The US Dollar depreciated following the news and global equities climbed.

Pound Remains Under Pressure

Tue, 16 Dec 08 06:00 am

The Pound fell to another new low versus the Euro yesterday while the US Dollar weakened ahead of an expected 0.5% reduction in the base rate from the Federal Reserve. The banking sector is reeling as the extent of Bernie Madoff’s fraud emerges, with major Spanish, UK and Japanese banks all posting billions of dollars worth of losses.

Markets await FOMC decision

Mon, 15 Dec 08 06:00 am

The Euro has been the major benefactor overnight as markets await a series of important data from the US and UK this week. The Dollar is broadly weaker in the run up to the Federal Reserve interest rate decision and Sterling remains low against the single currency as markets contend with more economic gloom in the UK.

Senate Fails to Reach Agreement

Fri, 12 Dec 08 06:00 am

Global stock markets are significantly lower this morning as the Senate failed to approve a $14 billion rescue package for the US automobile industry yesterday. The Pound has hit a new low of 1.11 against the Euro as further weak production data emerges from the UK.

Pound hits Record Low

Thu, 11 Dec 08 06:00 am

The Pound sunk to a record low against the Euro yesterday of 1.1385, the lowest since the Euro began, after the NISER announced an economic contraction of 1% in the 3 months to November. The OECD has reported the global recession could be longer and deeper than originally thought with the UK being one of the worst economies hit.

Production Statistics hurt Sterling

Wed, 10 Dec 08 06:00 am

Sterling remains weak this morning after production statistics show the UK economy is contracting at the fastest rate since 1990. The Euro has strengthened overnight against the Pound and US Dollar and European Commission President Jose Manuel Barroso has called for an EU-US agreement to battle recession.

Pound Continues to Slide

Tue, 09 Dec 08 06:00 am

Sterling has sunk again against the Euro and US Dollar ahead of UK trade figures released this morning. Negative underlying trends and production figures are capping the value of Sterling at present and it remains hovering just above all time lows versus the Euro.

Euro, Sterling Recover

Mon, 08 Dec 08 06:00 am

The Pound and Euro have recovered from very low levels last Thursday following interest rate decisions from their respective central banks. Rising unemployment on 'non-farm Friday' in the US sent the Dollar lower but markets have gained ground this morning, buoyed by Obama's announcement of increased government spending to stave off recession in the US.

September 2007

Fri, 05 Dec 08 06:00 am

August 2007

Fri, 05 Dec 08 06:00 am

April 2007

Fri, 05 Dec 08 06:00 am

Bank Cuts to 2%

Fri, 05 Dec 08 06:00 am

Interest rate cuts yesterday forced the Pound to an historic low against the Euro as the Bank of England reduced rates to their lowest level in 57 years. The Bank's base rate was lowered by 1%, while the ECB reduced rates by 0.75% in a move that was widely expected by markets. Global equities are lower this morning ahead of the publication of US employment figures later in the day.

Markets await Bank, ECB Decisions

Thu, 04 Dec 08 06:00 am

Both the Pound and Euro have plunged this morning as markets await interest rate decisions from the Bank of England and ECB. Weak UK service sector data yesterday forced the Pound down to an all time low against the Euro as figures showed a record contraction in November.

Sterling Weakens Again

Wed, 03 Dec 08 06:00 am

The Pound is weaker again this morning ahead of crucial PMI data for the service sector and interest rate announcements tomorrow. The US Dollar recovered overnight after losing ground due to the NBER report and markets made cautious gains yesterday.

Sterling Suffers along with Markets

Tue, 02 Dec 08 06:00 am

The Pound weakened significantly yesterday as a snapshot of the UK manufacturing sector showed the worst outlook since records began in 1992. The NBER announced the US entered recession in December 2007 sending global equity markets lower and dropping the price of oil to below $47 a barrel.

Markets fall as Slump Deepens

Mon, 01 Dec 08 06:00 am

Stocks across Europe and Asia fell overnight as negative news from banks and lower commodity prices show the economic slump deepening across the world. Sterling has declined against the Dollar this morning as investor confidence falls ahead of a week laden with economic data.