Tag Archives: Eurozone

UK GDP contracts -1.5%

Figures released this morning show UK GDP contracted 1.5% in the final quarter of 2008. This takes annual growth to -1.9%; a figure largely in line with market expectations. Wall Street gained over 3% yesterday, the largest gain in a month, after comments from Head of the Federal Reserve Ben Bernanke quelled investor fears over the state of the US banking sector. Continue reading

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Eurozone GDP down -1.5%

The Eurozone economy contracted -1.5% in the fourth quarter of 2008, dragging annual growth down to -1.2%. US retail sales figures yesterday showed an unexpected increase by 1% in January, providing a slight boost in risk appetite and allowing the Pound to recover some of the losses made earlier in the week. Continue reading

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Retail sales up

Retail sales figures in the UK are up 1.1% in January despite the grim economic climate. Labour’s School Secretary Ed Balls has claimed the recession is the worst in 100 years and balance of trade figures out this morning reflect reduced domestic consumption and export demand. Global equities remain neutral pending the announcement of the Federal Reserve rescue package.
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Markets await rescue package

Global equities have continued to gain ground this morning, fuelled by optimism surrounding the pending announcement of the Federal Reserve rescue package. This is despite further negative economic data from the UK and Eurozone and the package is expected to support risk appetite internationally. Continue reading

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Rate decisions due

Trading is volatile this morning ahead of the Bank of England and ECB interest rate decisions due this afternoon. US unemployment figures have risen by over 500,000 in January alone and shares in Europe’s major banks have declined as Swiss Re and Deutsche Bank have reported massive profit losses for 2008. Continue reading

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Snow blankets City

It was a thin day of trading across London yesterday as snow blanketed the city, wreaking havoc with transport networks and forcing 1 in 5 workers to stay at home. The weather placed even more pressure on small business owners already feeling the effects of the credit crunch.

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IMF predicts deep recession

The International Monetary Fund (IMF) announced yesterday that the UK is to be hardest hit by the current recession. Global growth forecasts have been revised down to 0.5% in what is likely to be the worst recession in 60 years. A separate report from the International Labour Organisation (ILO) predicted 50 million people internationally would become unemployed as a result of the downturn. Continue reading

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Sterling under Pressure

The Pound remains under pressure this morning, trading just off recent lows against its major currency partners. Barclay’s shares have risen nearly 40% in response to claims from the Chairman and Chief Executive the bank is operating in good financial health and the Federal Reserve is due to make an interest rate decision later in the week. Continue reading

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UK GDP contracts -1.5%

UK GDP has contracted -1.5% in the fourth quarter, taking annual growth rates to -1.8% confirming an entrenched recession. Growing speculation that the government will have to move to more unconventional policy measures is turning investors away from the Pound, while economic uncertainty internationally is supporting the US Dollar.
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Pound under Pressure

The Pound has continued to slump against the US Dollar reaching 1.36 yesterday, the lowest level since 1985. Sterling continues to be battered by spiralling government debt and the likelihood of more unconventional monetary easing measures from the MPC. Wall Street equities rallied reviving risk appetite internationally, however Sterling remained exempt and suffered against most of its international currency partners.
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