PhilBen
24th February 2010, 07:47
The Pound The U.K. economy is entering a “very grave stage” and the Bank of England should expand its 200 billion pound bond buying plan to fight the threat of a relapse, former Treasury adviser Roger Bootle said. “A second dip is a real possibility and deflation is a live risk,” Bootle, the founder of research group Capital Economics Ltd., said at an event in London yesterday. “We’re entering a very grave stage” and “moving into next year, it’s going to be a very dangerous situation.”
BOE Governor Mervyn King, who will today testify to lawmakers on the bank’s economic forecasts, said this month that it’s “far too soon” to say the bond plan won’t be expanded. Policy makers are trying to gauge the strength of the recovery.
The Dollar Confidence among U.S. consumers fell in February to the lowest level since April 2009 as the outlook for jobs has diminished significantly, this could be a sign that spending may be slowing as the economy recovers. The Conference Board’s confidence index declined to 46, quite a bit lower than anticipated, from a revised 56.5 in January, a report from the New York-based private research group showed today. Concerns about current business conditions and the job market pushed the present situation index to its lowest in 27 years. With 20,000 jobs lost last month the recovery is still looking to be shaky.
The Euro Germany’s recovery from its worst recession for years stalled in the final quarter of 2009 as domestic spending slowed. Below average temperatures and snow have brought construction sites to a halt and prompted companies to stop employing workers, hurting much needed household spending. “The harsh winter conditions is taking its toll,” said Carsten Brzeski, senior economist at ING Group in Brussels. “The bumpy ride is not over yet. However, the underlying trend of the German recovery remains healthy.”
Major Data out Today
DE GDP (wda) (F)
US New Home Sales
Live IB rates at 8.38am UK
GBP - EURO 1.14
GBP - USD 1.545
GBP - AUD 1.737
EURO – USD 1.354
BOE Governor Mervyn King, who will today testify to lawmakers on the bank’s economic forecasts, said this month that it’s “far too soon” to say the bond plan won’t be expanded. Policy makers are trying to gauge the strength of the recovery.
The Dollar Confidence among U.S. consumers fell in February to the lowest level since April 2009 as the outlook for jobs has diminished significantly, this could be a sign that spending may be slowing as the economy recovers. The Conference Board’s confidence index declined to 46, quite a bit lower than anticipated, from a revised 56.5 in January, a report from the New York-based private research group showed today. Concerns about current business conditions and the job market pushed the present situation index to its lowest in 27 years. With 20,000 jobs lost last month the recovery is still looking to be shaky.
The Euro Germany’s recovery from its worst recession for years stalled in the final quarter of 2009 as domestic spending slowed. Below average temperatures and snow have brought construction sites to a halt and prompted companies to stop employing workers, hurting much needed household spending. “The harsh winter conditions is taking its toll,” said Carsten Brzeski, senior economist at ING Group in Brussels. “The bumpy ride is not over yet. However, the underlying trend of the German recovery remains healthy.”
Major Data out Today
DE GDP (wda) (F)
US New Home Sales
Live IB rates at 8.38am UK
GBP - EURO 1.14
GBP - USD 1.545
GBP - AUD 1.737
EURO – USD 1.354