The road to recovery
The US Treasury announced yesterday that it will spend at least $250 bn on preferred equity from major financial institutions.
The plan is in some ways a turnaround for the government which initially seemed to be focusing on the $700 bn programme authorized by Congress on buying up illiquid assets that were clogging the banking system.
German's ZEW sentiment survey released yesterday reflected a deterioration in confidence in September, the height of the financial crisis.
The ZEW said that perspectives for economic development have significantly deteriorated due to the financial crisis but a separate analysis following the bank rescue package reveals a less pronounced decline in expectations.
In the UK CPI released yesterday posted a higher than expected 5.2% - the highest since 1997. Whist on the surface a high reading may be deemed to be problematic for the Bank of England the MPC's focus seems to be shifting to that of growth concerns as inflation is forecast to cool by mid-2009.
In the same breath, UK unemployment rose to the highest level in almost two years, slightly ahead of expectations as market participants forecast a significant deterioration in the labour market.
Risk appetite continues to play a significant role in the market, whether it be equities, cash, commodities or currency. Sentiment for sterling remains positive as the UK government continues to lead the way in dealing with the current challenges in the market.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
The plan is in some ways a turnaround for the government which initially seemed to be focusing on the $700 bn programme authorized by Congress on buying up illiquid assets that were clogging the banking system.
German's ZEW sentiment survey released yesterday reflected a deterioration in confidence in September, the height of the financial crisis.
The ZEW said that perspectives for economic development have significantly deteriorated due to the financial crisis but a separate analysis following the bank rescue package reveals a less pronounced decline in expectations.
In the UK CPI released yesterday posted a higher than expected 5.2% - the highest since 1997. Whist on the surface a high reading may be deemed to be problematic for the Bank of England the MPC's focus seems to be shifting to that of growth concerns as inflation is forecast to cool by mid-2009.
In the same breath, UK unemployment rose to the highest level in almost two years, slightly ahead of expectations as market participants forecast a significant deterioration in the labour market.
Risk appetite continues to play a significant role in the market, whether it be equities, cash, commodities or currency. Sentiment for sterling remains positive as the UK government continues to lead the way in dealing with the current challenges in the market.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Labels: credit crunch, FED, TARP, UK inflation, unemployment
posted by Wise Money @ 3:07 PM
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