Market News 15 February 2012 Posted 15.02.2012
Good Morning,
GBP: UK inflation figures fell to lowest since November 2010, and is predicted to be around the 2% target by the end of the year. Bank of England Governor King will present the new economic forecasts at 1030GMT today. He is expected to resist calls to do more to encourage banks to increase lending after they failed to meet government targets. There is not likely to be anything new in the report given the recent QE announcement.
EUR: A planned meeting of EU finance ministers to formally approve the Greek bailout has been called off amid fears that despite the positive vote, Greece still has not done enough to demonstrate commitment to austerity measures. Concern mounting among EU hardliners is that Greece is a step nearer bankruptcy. Other news: French economy figures surprised the markets with 1.7% growth. Equally surprising was the news that the German economy shrank by 0.2% last quarter. Italy and the Netherlands now both in recession after further negative results.ECB warns Belgium to reduce debt levels as outlook weakens.
USD: Weaker than expected retail sales figures left the markets wondering about the economic recovery. Although Fed’s Lockhart stated that the recovery is expected to be uneven and that the US policy reflects this. In continuing efforts to boost the economy, 160 million US workers will get tax cut if the planned legislation is passed
Judy Mansfield
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