Overseas Holiday Home Insurance through Wise Money

Overseas Holiday Home Insurance through Wise Money

With so many different holiday home insurance policies to choose from; it's often difficult to know where to begin. However our overseas holiday insurance broker has more than 35 years experience; so you can be confident that you will find the right cover at the right price.

Our overseas holiday home insurance provides comprehensive cover for all types of overseas properties. An example of the benefits of cover we can include:
Comprehensive Contents Cover: Our contents cover is wider than most; we have no upper claims limit for high risk goods (such as electrical equipment or antiques) and will replace or repair items old items with new. Policies automatically include £500 cover for outdoor goods and £1000 for jewelry. Accidental damage cover can be added.
Comprehensive Buildings Cover: Our buildings cover safeguards against damage to all outlying buildings and structures; including terraces, swimming pools and boundary walls. Leaseholders are also covered up to £10,000 if the freeholder's policy doesn't cover a claim that we would have covered. Again accidental damage cover can be added.
Flexibility: Our policies are suitable for all types of property whether your holiday home is a thatched cottage or a sleek city centre apartment. Regional Expertise: Our team of consultants has a wealth of regional knowledge covering everything from local regulations to national taxation. And it's our job ensure that there are no complications should you need to make a claim.
Theft Cover : Whether your property is occupied or unoccupied we provide the same level of cover. Emergency Travel: If you need to be present to make a claim on a damaged holiday home we will cover your travel expenses up to £1,000.
Public Liability: Our policies automatically include public liability cover of up to £2 million; we also cover employer's liability to provide for any staff (such as a pool cleaner or gardener) that you may employ.

We understand that an insurance policy is only as good as the claims team handling it; which is why we will provide an English speaking loss adjustor and guarantee payment within ten working days of your signed acceptance. For a competitive click here now OVERSEAS HOLIDAY HOME INSURANCE QUOTES for the online application form. Alternatively if you would prefer to speak directly with a consultant on 08700 667 500 quoting Wise Money.

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.

Landlord insurance for buildings and contents through Wise Money

Landlord insurance for buildings and contents through Wise Money

In business it's important to protect your investments; and as a landlord this means making sure that your buy to let property is insured. However, with so many policies to choose from; how can you be sure that you are getting the right cover at the right price?

With more than 35 years' industry experience our landlords insurers are able to negotiate with the country's leading insurers to offer highly competitive insurance packages. So whether you're on the first rung of the buy to let ladder, or have an established property portfolio, we can tailor a policy to fit your individual needs.

Benefits of cover include:
* You decide exactly what type of policy you need; whether it's buildings insurance, contents insurance or a combined policy
* Access to a wide range of specialist policies covering everything from unoccupied properties to commercially let holiday homes
* A number of our insurers award sizeable discounts for claim free years; great news for first-time landlords
* There's no paperwork to fill in; which means that we can arrange instant cover
* Choose from a variety of payment schemes, including no-deposit Direct Debit (details available on request)
* We can cater for properties let to all sorts of tenants eg. professionals, students, DSS tenants. Also properties let direct to universities and companies.

For a competitive buy to let insurance quote please click here LANDLORDS INSURANCE QUOTES and let our consultants do the hard work for you. If you would rather speak directly with a member of our landlord's insurance team please telephone 08700 667 500 quoting Wise Money

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.

UK holiday home insurance for buildings and contents through Wise Money

UK holiday home insurance for buildings and contents through Wise Money

If you own a holiday home you'll know just how frustrating it can be finding insurance cover that's both comprehensive and affordable. However, with Quoteline Direct's help it needn't be. We have been brokering insurance for more than 35 years and know the marketplace inside-out.

Just fill in the online quotation form and we will find you the right cover at the right price. An example of the benefits of cover we can include:
Flexibility: Choose a combined policy or stand alone buildings and contents cover. And unlike some policies there's no need to visit your property on a regular basis.
Comprehensive Contents Cover : Because we have no upper claim limit; you'll have the peace of mind that comes from knowing all your high risk items (such as jewellery and white goods) are adequately insured. Optional accidental damage cover can be added if the property is being used by friends and family only. Comprehensive Buildings Cover : Policies can include cover for all outbuildings and related structures, including swimming pools, summerhouses etc.
We Insure all Properties: We can arrange insurance cover for all types of property; whether you own a thatched cottage in Cornwall or a contemporary city centre apartment. We can also provide cover for listed buildings, non-standard construction and properties with structural problems.
We Insure all Usage: Our policies can provide cover for all usage; whether your friends and family are staying or your holiday home is a commercially let business venture.
Loss of Rent/ Alternative Accommodation : All our policies automatically include provision for loss of rental income and alternative accommodation should the worst happen to your property.
Public Liability : Cover of up to £2 million is automatically included.
Financing Options: To help spread the cost of payment we can arrange for No Deposit Direct Debit
Extra Discounts: If you insure your main residence, you stand to make considerable savings on your holiday home cover.

For an instant quote or to arrange instant cover please click HOLIDAY HOME INSURANCE QUOTES or telephone: 08700 667 500 quoting Wise Money to speak with a dedicated UK holiday home insurance consultant.

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.

Home contents insurance quotes and save 10% on your renewal quote!

Home insurance for contents and save 10% on your renewal quote!

Insure your house and save at least 10% against your current contents insurers renewal premium with like-for-like cover.

With more than 35 years' experience you can trust one of the country's leading household insurance brokers. Whether you're looking for buildings insurance, contents insurance or a combined policy; we can find the right cover at the right price. 

Please click here now for a quick CONTENTS INSURANCE QUOTE

Our online quotation engine searches hundreds of policies from the biggest names in UK insurance to give you an instant quote. It's then up to our team of underwriters to tailor the quote to fit your circumstances and see how much extra you can save. In fact, we are so confident in our service that we guarantee a 10% saving on your current renewal quote. Other benefits include:
* At least 10% cheaper guaranteed
* Access to a wide range of policies means we can provide cover to suit everyone's needs: from first-time buyers to retired professionals
* Security conscious customers may be eligible for additional discounts by fitting smoke/ burglar alarms or joining a Home Watch scheme
* Switch to Quoteline Direct and we can usually repay the £25.00 administration fee charged by banks and building societies
* Call our 24-hour claims helpline to get help when you need it most. We aim to settle claims as quickly as possible with a minimum of fuss
* Choose from a number of payment options, including direct debit with NO DEPOSIT payable (details available on request)

We often hear complaints from 'non-standard' customers fed up with spending a small fortune on their house insurance; which is why we developed Ultimatum. So no matter whether you've got a thatched roof or a flat roof, a listed building or a subsiding semi; we can offer comprehensive cover at a competitive price.

For an online quote please click here now or please telephone 0870 066 7500 quoting Wise Money to speak to a consultant.

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.

Home insurance quotes for buildings and contents through Wise Money and save 10% on your renewal quote!

Home insurance quotes for buildings and contents plus save 10% on your renewal quote!

Insure your house and save at least 10% against your current insurers renewal premium with like-for-like cover.

With more than 35 years' experience you can trust one of the country's leading household insurance brokers. Whether you're looking for buildings insurance, contents insurance or a combined policy; we can find the right cover at the right price. 

For a quick HOME INSURANCE QUOTE please click here now

 

Our online quotation engine searches hundreds of policies from the biggest names in UK insurance to give you an instant quote. It's then up to our team of underwriters to tailor the quote to fit your circumstances and see how much extra you can save. In fact, we are so confident in our service that we guarantee a 10% saving on your current renewal quote. 

Other benefits include:
* At least 10% cheaper guaranteed
* Access to a wide range of policies means we can provide cover to suit everyone's needs: from first-time buyers to retired professionals
* Security conscious customers may be eligible for additional discounts by fitting smoke/ burglar alarms or joining a Home Watch scheme
* Switch to Quoteline Direct and we can usually repay the £25.00 administration fee charged by banks and building societies
* Call our 24-hour claims helpline to get help when you need it most. We aim to settle claims as quickly as possible with a minimum of fuss
* Choose from a number of payment options, including direct debit with NO DEPOSIT payable (details available on request)

We often hear complaints from 'non-standard' customers fed up with spending a small fortune on their house insurance; which is why we developed Ultimatum. So no matter whether you've got a thatched roof or a flat roof, a listed building or a subsiding semi; we can offer comprehensive cover at a competitive price.

For an online quote please click here now or please telephone 0870 066 7500 quoting Wise Money to speak to a consultant.

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.

Home insurance quotes for buildings and contents through Wise Money and save 10% on your renewal quote!

Home insurance quotes- insure your house and save at least 10% against your current insurers renewal premium with like-for-like cover.

With more than 35 years' experience you can trust one of the country's leading household insurance brokers. Whether you're looking for buildings insurance, contents insurance or a combined policy; we can find the right cover at the right price.

Our online quotation engine searches hundreds of policies from the biggest names in UK insurance to give you an instant quote. It's then up to our team of underwriters to tailor the quote to fit your circumstances and see how much extra you can save. In fact, we are so confident in our service that we guarantee a 10% saving on your current renewal quote. Other benefits include:
* At least 10% cheaper guaranteed
* Access to a wide range of policies means we can provide cover to suit everyone's needs: from first-time buyers to retired professionals
* Security conscious customers may be eligible for additional discounts by fitting smoke/ burglar alarms or joining a Home Watch scheme
* Switch to Quoteline Direct and we can usually repay the £25.00 administration fee charged by banks and building societies
* Call our 24-hour claims helpline to get help when you need it most. We aim to settle claims as quickly as possible with a minimum of fuss
* Choose from a number of payment options, including direct debit with NO DEPOSIT payable (details available on request)

We often hear complaints from 'non-standard' customers fed up with spending a small fortune on their house insurance; which is why we developed Ultimatum. So no matter whether you've got a thatched roof or a flat roof, a listed building or a subsiding semi; we can offer comprehensive cover at a competitive price.

For an home insurance quotes- please click here now or please telephone 0870 066 7500 quoting Wise Money to speak to a consultant.

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.

Home insurance for contents through Wise Money and save 10% on your renewal quote!

Home insurance for contents through Wise Money and save 10% on your renewal quote!

Insure your house and save at least 10% against your current contents insurers renewal premium with like-for-like cover.

With more than 35 years' experience you can trust one of the country's leading household insurance brokers. Whether you're looking for buildings insurance, contents insurance or a combined policy; we can find the right cover at the right price.

Our online quotation engine searches hundreds of policies from the biggest names in UK insurance to give you an instant quote. It's then up to our team of underwriters to tailor the quote to fit your circumstances and see how much extra you can save. In fact, we are so confident in our service that we guarantee a 10% saving on your current renewal quote. Other benefits include:
* At least 10% cheaper guaranteed
* Access to a wide range of policies means we can provide cover to suit everyone's needs: from first-time buyers to retired professionals
* Security conscious customers may be eligible for additional discounts by fitting smoke/ burglar alarms or joining a Home Watch scheme
* Switch to Quoteline Direct and we can usually repay the £25.00 administration fee charged by banks and building societies
* Call our 24-hour claims helpline to get help when you need it most. We aim to settle claims as quickly as possible with a minimum of fuss
* Choose from a number of payment options, including direct debit with NO DEPOSIT payable (details available on request)

We often hear complaints from 'non-standard' customers fed up with spending a small fortune on their house insurance; which is why we developed Ultimatum. So no matter whether you've got a thatched roof or a flat roof, a listed building or a subsiding semi; we can offer comprehensive cover at a competitive price.

For an contents insurance quoets please click here now or please telephone 0870 066 7500 quoting Wise Money to speak to a consultant.

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.

Home insurance quotes for buildings and contents through Wise Money and save 10% on your renewal quote!

Home insurance for buildings and contents through Wise Money and save 10% on your renewal quote!

Insure your house and save at least 10% against your current insurers renewal premium with like-for-like cover.

With more than 35 years' experience you can trust one of the country's leading household insurance brokers. Whether you're looking for buildings insurance, contents insurance or a combined policy; we can find the right cover at the right price. 

For an online quote please click here now

Our online quotation engine searches hundreds of policies from the biggest names in UK insurance to give you an instant quote. It's then up to our team of underwriters to tailor the quote to fit your circumstances and see how much extra you can save. In fact, we are so confident in our service that we guarantee a 10% saving on your current renewal quote. Other benefits include:
* At least 10% cheaper guaranteed
* Access to a wide range of policies means we can provide cover to suit everyone's needs: from first-time buyers to retired professionals
* Security conscious customers may be eligible for additional discounts by fitting smoke/ burglar alarms or joining a Home Watch scheme
* Switch to Quoteline Direct and we can usually repay the £25.00 administration fee charged by banks and building societies
* Call our 24-hour claims helpline to get help when you need it most. We aim to settle claims as quickly as possible with a minimum of fuss
* Choose from a number of payment options, including direct debit with NO DEPOSIT payable (details available on request)

We often hear complaints from 'non-standard' customers fed up with spending a small fortune on their house insurance; which is why we developed Ultimatum. So no matter whether you've got a thatched roof or a flat roof, a listed building or a subsiding semi; we can offer comprehensive cover at a competitive price.

For an online quote please click here now or please telephone 0870 066 7500 quoting Wise Money to speak to a consultant.

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.

Fear factor returns

Despite good economic data yesterday from the US in the form of US pending home sales and Manufacturing ISM the market flipped into negative mode.

There is no one reason for this shift but a culmination of reasons and this led to equities tumbling and Oil and commodities falling; the main losers were the banks as fears rose on renewed balance sheet concerns. 

September was previously touted as the month for stocks to fall and the first day of the month definitely backed up this prediction. Concerns over the sustainability of China’s growth were a big factor and also discouraging data from automakers. 

In the markets we witnessed further strength in the USD and the JPY as the risk aversion trend came into play. GBP/USD moved from a morning high of 1.6350 to a low of 1.6111 and EUR/USD retreated from 1.43 to 1.42; GBP/JPY fell back under the 150 level as the positive YEN feel on the new leadership continued coupled with strength on the back of risk aversion. 

USD/JPY moved into 92.00 levels and this brings the 90.00 level into focus again.

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.

Boost for UK's economic recession prospects

Britain’s economy shrank by 0.7 per cent in the second quarter, a smaller decline than the 0.8 per cent initially estimated, official figures showed this morning.

The annual drop in GDP was also revised up to show a 5.5 per cent fall. The initial estimates had suggested a 5.6 per cent decline.

However, this is still the sharpest annual fall since records began in 1955.

The FTSE 100 blue chip index, which had begun to rally before the figures were published, was 1.01 per cent higher, up 49.44 points at 4,918.79.

Economists had expected the figure to remain unchanged, but the official figures showed that statisticians had revised up their estimates for the manufacturing, energy, wholesale and motor vehicles sectors.

The Office for National Statistics said that there was anecdotal evidence that the Government's car scrappage scheme had helped to boost the car industry.

Despite this positive news, however, the figures still showed record falls in construction output since records began in 1948.

The service sector also recorded the biggest annual decline since official records began in 1955.

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.

Wise Money asks if the good cheer will prevail?

On Friday we had further positive feedback from the US economy as existing home sales came in much better than forecast hitting 2 year highs.

This data and a healthy economic assessment from Ben Bernanke boosted the good cheer in the markets. We are approaching the one year mark from the collapse in the financial systems and at the moment things are looking pretty steady and stable.

However I feel economic data will be closely scrutinized in the next quarter to look for sustainability in the markets and not simply a knee jerk response to extra stimulus.

An article in the FT by Nouriel Roubini points to a threat of a double dip recession if the recovery turns anaemic.

Chin up to you Aussie readers- yes you have lost the Ashes and also the rugby against rivals New Zealand over the weekend. However do not despair as your currency is strong- hitting new 12 year highs against sterling at 1.9608.

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.

US housing starts surprise with July fall

New York stocks rise as better than expected results from retailer Home Depot offset the surprise drop in housing starts

US housing starts and permits fell unexpectedly in July, as hopes for a boost from falling house prices and government stimulus efforts for first-time buyers proved over-optimistic.

Privately owned housing starts fell 1 per cent to a seasonally adjusted annual rate of 581,000 units. This was well below market expectations for 600,000 units and significantly less than the revised 587,000 unit figure for June, according to figures from the US Commerce Department. Compared to July last year, housing starts dropped 37.7 per cent.

Construction starts for single family homes, the worst hit part of the housing market, rose 1.7 per cent to an annual rate of 490,000 units, the highest since October. But the headline figure was dragged down by a 13.3 per cent fall in starts on multi-family units.

New building permits, which give a sense of future home construction, fell 1.8 percent to 560,000 units in July. Analysts had been expecting 580,000 units. Compared to the same period a year-ago, building permits declined 39.4 per cent. This was despite the $8,000 Federal government tax credit stimulus efforts introduced for first-time buyers.

The inventory of total houses under construction fell to record low 609,000 in July, the department said, while the total number of permits authorised but not yet started also hit a record low at 102,300.

US stocks rose in morning trade as the surprise drop in housing starts was offset by better-than-expected results from retailer Home Depot. The Dow Jones industrial average was up 63.63 points, or 0.70 per cent, at 9,198.97.

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.

Australian Dollar the big winner as risk appetite continues

More positives as equities continued their bull run with the FTSE posting another gain yesterday.

The markets were boosted by further signs that the weakness in the US economy was bottoming out. US new home sales rose 11% in June far outstripping expectation- firming and improvement in the housing sector is vital to underpinning recovery.

The housing sector is a leading indicator to downturn/upturn in any economy and the news yesterday was greeted well by the markets- sustainability is still the key going forward in this sector and we are still not out of the woods but closer than ever.

As is the trend this good news led to further weakness in the USD and stocks experiencing their longest rally since 2003. The dollar index dropped to its lowest level this year and the main beneficiaries were higher yielding commodity based currencies such as the New Zealand and Australian dollar.

Other economic data affirmed that Italian July consumer confidence rose to 107.5, up from 105.4 in June, and better than the median forecast of 105.9. It is the highest read since November 2007. Meanwhile, French industry demand fell in the Q-2, but less sharply than in previous two quarters.

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.

US economy facing substantial recessionary risks

The US economy is facing "substantial risks" as the property bust spreads to commercial real estate and the recession engulfs the world, a top White House adviser has said.

Larry Summers, chair of the National Economic Council, said there were signs that worst may be over but warned that "it is a long road and it is going to take time" after the damage inflicted on the financial system.

"There are downside contingencies that we've got to prepare for, issues in the global economy, in commercial real estate. We can't know with certainty what's going to happen next, and there certainly are real risks ahead," he said at the Americas summit in Trinidad.

US house building appears to be stabilising near 500,000 a month, albeit a very low level. The number of new jobless claims has dropped over the last two weeks.

Dominic Wilson, a strategist at Goldman Sachs, said: "There are few clearer signals than this that the market remains highly uncertain about the recovery path and the risks ahead"

Mr Wilson said one year VIX contracts have remained at elevated levels not seen since the Great Depression.

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.

Almost one million UK home owners in negative equity, says CML

Almost one million UK home owners are in negative equity, the Council of Mortgage Lenders has suggested.

It claimed that about 900,000 home owners currently have some degree of negative equity, where the value of their home is less than their mortgage.

Bob Pannell, head of research at the CML, said negative equity had "resurfaced" as house prices have fallen and that it "will contribute to subdued property turnover".

However, the CML said the majority of those in negative equity around two thirds face only modest shortfalls of less than 10 per cent, equating to around £6,000 for those first-time buyers with negative equity, and £8,000 for other home-buyers.

The CML's estimate is less than some economists' predictions that nearly four million home owners are already suffering from the predicament. And it is still less than the 1.5 million households estimated to have negative equity at the depth of the last housing market slump in 1993.

It said: "Falling house prices have once again raised the prospect of negative equity for borrowers. Although negative equity may reduce a household's coping strategies should they encounter payment difficulties, it does not of itself affect the ability to keep up mortgage payments or create a risk of repossession."

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.

UK GDP set to fall by 4% in early 2009

Lots of data yesterday in the UK, of particular interest was the Bank Of England inflation report which showed inflation at just 0.5% in two year.

This means more interest rate cuts and the ever increasing probability of quantitative easing. It seems that the Bank of England will try a plethora of measures to kick start the UK economy and bring inflation back into line.

The immediate impact of this was a sell off in sterling against the majors- sterling was not helped by employment data as the UK jobless figure rose to just under 2 million.

Another hammer blow was the rhetoric by Mervyn King which stated that the UK economy is in deep recession and that GDP will fall by 4% in early 2009.

Elsewhere, Canada posted their first trade deficit in 32 years as exports dipped especially in relation to the US- this is a far cry from the good times as surpluses bulged.

The deficit came in at C$0.46 billion in December and emphasises the seriousness of the economic slowdown globally- this data helped the CAD to drop quickly to 1.2511 from 1.2430 against the USD- Finance minister Jim Flaherty mentioned that the recent strength of the Canadian dollar has not helped.

In other data from Canada- new home prices fell 0.1% which gave an annual increase of 0.4%- the lowest since 1997. In the US the trade deficit shrank by 4% in December as imports and exports fell as global trade shrinks.

A rush back to risk aversion is highly evident in the last 24 hours as the US financial stability plan fell short on detail- the Dollar and the Yen again benefited as equity market slumped and looked uncertain- this is now an ongoing theme between risk appetite and risk aversion.

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.

New lows for Sterling

Another day and more record lows for GBP/euro are€“ currently at all time lows.

This cross is trading in uncharted territory and is struggling to find support with many expecting to see parity before the year is out. However, UK retail sales just out at better than expected levels (0.3% versus -0.6%) should lend support to GBP over today's session.

UK Unemployment out yesterday would not have helped GBP as the headline figure rose to 1.07m for November; a jump of 75,700 from October. This is the largest rise since 1991 and does little to quell fears of continued redundancies in London in 2009.

Japanese yen has also been in the headlines hitting record highs of 87.15 last night. JPY is currently trading at 87.68 and may well test yesterday's high again.

Japan's Central Bank meet tomorrow and there is speculation that they may well cut rates close to zero in an effort to stimulate their economy. Falling global demand has hit Japan's economy hard as they have such a export focus. Japan's rate is currently 0.3%.

Economists are also speculating about the ECB cutting deposit rates as soon as today in an effort to stimulate interbank lending. Cutting deposit rates (from current 2% on overnight cash) would make holding cash with the ECB less attractive and hopefully free up capital for consumers and companies and help the interbank market.

Ever since Lehmans collapsed banks have been very cautious about lending to one another. The Euribor (the euro interbank offered rate) set yesterday at 3.16 which is 66 basis points above the ECB rate.

In commodity markets, yesterday Opec agreed to cut production by a record 2.2m barrels per day but the price of crude oil has continued to fall. Oil has fallen by more than $100 from a record of $147 in mid July to current levels of $43.21 (Brent Crude in London). Opec has cut production three times since September and Opec accounts for 40% of the World's oil production.

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.

UK sales down again

In November, the BRC survey showed on Tuesday in a grim portent of the all important Christmas shopping season. Sales fell 2.6% y/y in November, the sharpest drop since the Easter influenced April 2005. Not a good sign.

This morning Wise Money was trying to be a bit positive following the rise in house buyer interest shown in yesterday's RICS survey. Admittedly, the actual number of sales slumped to a new 30-year low but at least the interest in property was on the increase.

This, added to the further sharp declines in inflationary pressures from easier Producer Input Prices (down 3.3% in November alone for a 12-month 7.5% rise) put the skids under Sterling - especially versus the Euro where we established a new all time low. Other than that, yesterday was a bit thin on data so we look to today's offerings for a bit of stimulus.

We have important statistics from Germany and the EU this morning as well as further housing and trade data from the UK. On top of that, there are several Central Bankers speaking on their various economies and the expectation that Canada will cut their interest rates at their meeting this afternoon.

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.

Risk aversion prevails with less volatility

Safe haven flows driven by risk aversion again boosted the dollar and yen yesterday but market activity was less volatile than that seen last Friday.

The yen traded as low as 91.93 verses the dollar but remained above the 13 year low seen on Friday (90.95) and rose to 113.61 verses the euro its highest level since May 2002. The dollar set a fresh 2½ year high verses the euro at 1.2332.

Finance officials from the G7 earlier issued a statement saying they were concerned about the excessive volatility of the Japanese currency and said they would continue to monitor markets closely and cooperate as appropriate, raising prospects for a coordinated intervention.

Equity markets also enjoyed some rest bite from the recent turmoil. The FTSE closed just 30 points lower on the day having traded down 218 points at one point.

The Dow closed down 2.4% recovering some lost ground suffered during the day. Overnight in the Far East both the NIKKEI (up 6.4%) and the HANG SENG (up 14.3%) posted strong gains that hopefully will inspire and encourage traders in European and American markets today.

If the ECB required more evidence that a further cut in interest rates is urgently needed it came in the form of the German IFO.

The German corporate sentiment index fell in October to its lowest level since May 2003 on expectations the export sector will suffer a big hit from weakened foreign demand.

The Munich-based IFO economic research institute said that its business climate index, based on a monthly poll of around 7,000 firms, fell to 90.2 from 92.9 in September and well below the 91.0 expected. The latest German IFO and euro-zone M3 figures add further weight to the view that the ECB is set to cut interest rates aggressively.

In the US, sales of new homes increased during September by 2.7% as builders slashed prices and inventories declined. This somewhat encouraging news follows better than expected figures for existing home sales released last week.

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.

A week of wrangling over Fed bailout

This mornings financial news is again dominated by the €˜on again / off again US Treasury bailout.

Despite George Bush urging €˜swift action to avoid a €˜long and painful recession, wrangling over the details of the proposal has meant that Friday is now upon us, with still no deal confirmed.

The Republicans, while agreeing to a number of the Democrats demands which would see the Treasury buy up a number of banks €˜risky assets, are now attempting to put in place additional measures to prevent €˜excessive pay of bank executives who are involved in the scheme.

Whilst it seems likely that if Paulson is to get his wish of the near $750 billion bailout, his access to the funds will come in the form of staggered payments, rather than a lump sum.

Earlier yesterday, it had been thought that a deal was extremely close to being agreed, and both the Dollar and US equities rallied as a result, with the S&P 500 closing up 2% and the FTSE Eurofirst 300 rose 2.16% to 1,125.43.

However, the stalling of US politicians and failure to agree a deal has seen some of the Dollar strength and gains in equities reverse this morning. Some economists are now warning investors not to get too carried away by hopes of the US Treasury deal as worries regarding the wider global economy would not be going away any time soon.

This view was reflected in economic data released in the US yesterday. US New Home Sales fell in August to a 17 year low, dropping 11.5% to an annual rate of 460,000, the fewest since January 1991. Orders for Durable Goods in the US also dropped 4.5% in August, more than twice as much as had been forecast by economists, a clear sign that the tightening credit conditions had seen a cut back in spending.

These figures added to last weeks Initial Jobless Claims figure, which at 493,000 was the highest since September 2001, all point to the fact that the US economy is still very much stuttering along.

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Debate escalates on Fed bailout plan

Another day of falling crude oil prices and the morale boost investors experienced on reports of Warren Buffet's $5bn investment in Goldman Sachs saw the dollar gain ground against the euro and other major currencies yesterday.

First thing this morning the Pound regained its upward momentum against the dollar following comments from Bank of England member Andrew Sentance stating that the central bank must control its response to the financial crisis and remember its mandate of inflation control.

There has been a shift in thinking within the Bank of England to that of a more "€˜dovish stance". That said there is still a large proportion of people who believe the Bank of England will lower rates when they next meet on October 8th.

The ongoing debate between US Treasury Secretary Paulson, Fed Chairman Bernanke and Congress has seen scepticism from both Democrat and Republican politicians. Congressman from both sides wanted assurances that the Treasury Asset Relief Programme wouldn't result in a waste of public funds.

Paulson attempted to provide comfort by explaining “the program we have proposed is not a spending program. It is an asset purchase program, and the assets which are bought and held will ultimately be resold with the proceeds coming back to the government".

George Bush expressed his support through a broadcast to the nation on primetime television, urging them to back the plan in order to ease a “serious financial crisis".

Furthermore, John McCain emphasised that he was prepared to suspend his presidential campaign until a solution was agreed, pressuring Obama to do the same. The uncertainty surrounding which aspects of €œPaulson's Plan will be approved forced a flight to safety which saw interbank lending rates hit record highs yesterday.

Whilst economic releases continue to take a back seat in determining the direction of the markets, German IFO figures fell to a lower than expected 92.9 in September at€“ it's lowest rate since May 2005, pointing to the growing threat of recession in the Eurozone economy. US home sales also reported a fall to its slowest pace in 17 years.

Some key data out in the US today; New home sales, Unemployment claims and Core durable goods orders.

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Currency converter uncertainty

Curency markets after having time to digest the US Treasuries decision to rescue the Government Sponsored Enterprises (GSE'S) reversed gains from earlier in the week on concerns the announcement failed to solve the fundamental concerns of the US economy, notably the slumping housing market and associated credit losses for banks.

Equities slumped while government bonds rallied as risk aversion returned to the markets. Oil also continued to edge towards $100 a barrel and the dollar retreated from earlier highs against the Euro and GBP.

Yesterdays data showed a sharper than expected decline in US pending homes sales for July, declining 3.2% vs. expectations of a 1.4% drop. The data is volatile and tracks sales before the GSE announcement (and consequent decline in mortgage rates) but underline the sensitivity of investor sentiment globally to the state of the housing markets.

In news closer to home, the National Institute for Economic and Social Research stated that the UK was contracting for the fist time in a decade as GDP declined 0.2% between June and August. Falling house prices and the global credit squeeze were familiar woes accredited to the gloomy outlook.

In the UK we saw data releases yesterday, showing the housing market continues to show signs of deterioration. The RICS house price balance came in slightly better than expected at -81% (predicted -84%) but from the data the details warned that sales had fallen to a record low due to the unavailability of mortgages.

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Weak IFO expected....

The Euro fell for a third day against the dollar on speculation the IFO Business Climate report will show today that confidence has slumped in Germany to a three year low.

The currency traded near a three-month low versus most major currencies and towards a six month low against the dollar with concern credit-market losses and slowing exports will stop the European Central Bank from raising interest rates this year.

The US dollar grew stronger on Monday and early Tuesday on the speculation of a weak German IFO survey, but could well decline later today with expectation of Sales of new houses in the U.S. likely to have fallen in July as mortgage lending dried up.

US homes purchases are expected to have dropped 0.9 percent to a 525,000 annual pace. Mounting losses on subprime mortgages have caused banks to withhold credit and boost borrowing costs, hurting demand even as prices are falling and making houses more affordable.

The decrease in sales has signalled the worst real-estate slump in more than quarter of a century.

The Pound fell against the dollar again on Monday, extending a fifth week of declines, the longest continued drop since February 2006. The UK Currency, slipped to its lowest level since July 2006 as effects of last weeks government report showed economic growth stagnated in the second quarter.

The report also added pressure to the Bank of England to set aside concerns about inflation and cut its benchmark interest rate, currently at 5%. With the UK inflation rate at more than twice the 2 percent target, the Bank of England have been reluctant to lower interest rates, and understandably so.

The Australian and New Zealand dollars continued their recent declines as concerns credit-market turmoil will widen prompting investors to sell higher-yielding assets funded in the Japanese currency.

The New Zealand dollar fell to its lowest level in over a week, and the Aussie dollar to a four month low against the most traded currencies on speculation that the nations bank will cut Australian interest rates from the 12-year high of 7%.

Crude oil was little changed after rising yesterday as Tropical storm Gustav formed in the Caribbean Sea, raising concerns it may disrupt production at oil fields in the gulf of Mexico.

Gustav has strengthened to near hurricane force with winds about 70 miles an hour and was moving towards the gulf. Prices also rose after Russian lawmakers voted to recognize the independence of two breakaway Georgian regions, increasing the prospect of further tensions in the area.

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BoE minutes is the focus today

Wise Money starts with news from the US housing sector with government figures reporting the annual pace of Housing Starts at 965k in July, the lowest annual rate in 17 years.

While this was slightly more than market expectations, building permits were reported down 17.7 percent at 937k and well below forecasts of around 970k. To add to the woes for the US Fed Reserve, persistent inflationary pressures were reported in the form of the PPI figure where US wholesale prices shot up at the fastest year-on-year rate since 1981.

Prices at the factory gate climbed 1.2 percent in July but it was the core producer prices, which exclude food and energy, which had the biggest impact rising 0.7 percent after a 0.2 percent increase in June.

Market expectations here were for a rise of 0.2 percent again and this figure gave little comfort to the US Fed Reserve, which is hoping a slowing economy will stave off inflationary pressures and enable rates to stay on hold.

Recent declines in EURUSD and oil appear to have given comfort to German and Euro-zone economic sentiment. The ZEW survey was better than expected coming in at -55.7 showing market participants are not as negative on the European and German economy as before.

However, the German ZEW Current Situation figure was well below expectations at -9.2 and indicates that sentiment is still to the downside with weaker growth and higher inflation being the main drag.

Here in the UK we will see how the Bank of England's MPC voted when they met a few weeks back when the minutes are released today (9.30am). Previously the vote was split 7 to hold, 1 to cut rates and 1 in favour of an increase in rates.

As with the Fed in the US, the Bank of England faces the same concerns of persistent inflation and slowing growth but the recent Inflation report contained a dovish tone which will make it likely the bulk of the MPC voted to keep rates on hold.

Other snippets of UK data today come in the form of Public finances and CBI industrial trends but it will be the BoE minutes that the market takes direction from.

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US Dollar maintains strength

US Dollar strength continued on Friday, helped by a rise in the University of Michigan US Consumer Confidence survey.

The index improved for the second consecutive month to 61.7 from 61.2 in July, although slightly behind expectations of 62.0. The key driver behind the improvement in consumer confidence was the recent reduction in oil prices which was reflected in 1 year inflation expectations falling from 5.1% to 4.8%.

However with job losses in the US mounting, credit conditions remaining tight, and food and energy prices still relatively high, the index gauging sentiment on current economic conditions declined to 69.3 from 73.1.

This suggests that the average US consumer is not necessarily ready to head to the shops again just because oil prices are receding, and as a result, significant downside risks to growth remain.

This is reflected in overnight index swaps prices which moved sharply on Friday to price in 38bps worth of hikes by the Federal Reserve over the next 12 months, down from 71bps on Thursday.

In the US this week's focus will be on US producer prices for July and housing data out today and tomorrow. This evening the US National Association of Home Builders Index is released, expectations are for the Index to remain at a record low of 16 for August.

This will tie in with similar tones from housing start data out tomorrow with forecasts of a decline from 1.07m to 960,000 home starts in June.

There is a significant week ahead for GBP on the data front including the release of BoE minutes, UK Retail Sales and further second quarter GDP data. The markets will watch to see if there has been a change in three way split from the BoE previous meeting particularly given the negative tone on growth in last weeks inflation report.

This negative sentiment is expected to be reflected the in retail sales data as UK consumers continue to tighten their belts.

The overall market sentiment was not helped by talk over the weekend that the British Chamber of Commerce will be releasing a bearish quarterly economic forecast this week, predicting a recession and calling for the Bank of England to cut rates aggressively in the months ahead.

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.

Wise Money sees up and downs like a yo-yo

Sterling's rise following the split MPC vote on Wednesday was short lived as UK retail sales data for June released yesterday plummeted.

Sales fell in all but one sector, with clothes, shoes and household goods sales severely hit. The sharper-than-expected decline drove the pound lower as investors bet the Bank of England may have to cut interest rates to bolster the economy.

The Office for National Statistics said retail sales volumes fell 3.9% in June, the sharpest fall since records began in 1986, after an upwardly revised 3.6% increase in May.

Analysts were expecting a fall of just 2.5% and an annual gain of 4.4% but annual growth was just 2.2% compared to 7.9% last time. While the Bank of England has given little sign that lower borrowing costs are on the way, because inflation is running at its strongest rate in more than a decade, most economists think rates will need to fall eventually.

It was also bad news for the Euro zone with German business sentiment declining sharply. The Ifo business climate index fell to 97.5 from 101.2 in June, its lowest level since September 2005.

Also of concern to policy makers at the ECB will be the fact that both Manufacturing and Service sector PMI indexes also fell in June. Services PMI declined to 48.3 from 49.1 in May its lowest reading for 5 years while Manufacturing PMI dropped to 47.5 from 49.2 - readings under 50 indicate contraction.

It wasn't any better stateside either. The US weekly jobless claims jumped by 34,000 to 406,000 from 372,000 the previous week and new home sales were down 2.6% in June to record their lowest level for 10 years.

With the crucial US Non Farm payroll numbers due out next Friday the jobless claims does not bode well. Wall Street closed 283 points lower on the back of the weak economic data and the record losses announced by Ford. The car giant's second quarter loss amounted to US$9 billion as sales of trucks and larger vehicles plummeted.

US crude oil prices bounced a little from recent lows to close at $126.15 yesterday with Brent crude also closing up at $126.96.

The Aussie Dollar has come under further pressure following an announcement by the National Australia Bank that they have written off A$798m in credit market related losses thereby increasing speculation that the Reserve Bank will need to cut interest rates sometime soon.

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.

Wise Money eyes turn to next week

A fairly quite day in terms of data, with the only things of real note coming from the US. First out we have the US Housing starts out at 1:30 BST, which the market will be looking to any positive signs for future housing sales.

US University of Michigan Confidence report out at 3:00 BST. A further decline is expected to around 61 from 82.6 in April.

Barclays issued their update/trading statement with a write down of £1.7billion of assets, along with an increase of new mortgage lending.

The market will be looking to see if they take the decision to conduct a rights issue to shore up their balance sheet or if they would look to private investors, Finance Director Chris Lucas quoted 'We're not going to rule in or rule out any options at this stage'.

Three weeks ago we saw the Bank of England announce a package of £50billion to help free up lending in the UK market, but reports in today's Financial Times are stating that this is looking to increase closer to £90billion!

Looking ahead we have a fairly busy week starting with the German ZEW Survey out on Tuesday, then a bit closer to home we have the all important Bank of England minutes published at 9:30 BST on Wednesday which will make for interesting reading.

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.

US New home sales plummet

Whilst US home builders have slashed average house prices by record amounts we still saw new home sales plunge by 8.5% in the month of March to 17 year lows, according to the Commerce Department who released their estimation yesterday. New home sales are down 36.6% compared with a year ago!

However it wasn't all doom and gloom for the US with jobless claims falling from 375,000 to 342,000; this being the lowest level for 2 months and coming in better than the predicted 375,000.

Dollar weakness was tempered somewhat by chinks developing in the Eurozone armour. The Euro fell to a one-week low against the dollar on Thursday after a survey showed German corporate sentiment deteriorated by more than expected in April.

The German IFO business climate fell from 104.80 in March to 102.40 this month, which was significantly lower than the market expectation of 104.0pts. This is the weakest level since January 2006 and could well be the turning point of the single currency's uptrend.

On the UK side retail sales came in down 0.4% for March but were revised up to 4.6% for the year. The British Retail Consortium demonstrated concern that this figure was misleading given that the retail sector are making sounds that they are struggling.

Sterling failed to lift itself out of it's current trough against the Euro as poor sentiment on Britain's economy convinced investors the Bank of England is set to cut interest rates further.

This week it remained just above a record low against the Euro as the housing market weakened and consumer spending softened, although we have seen some fight back this morning. There's hope yet for the British holiday maker in Europe!

Oil prices retreated yesterday but the strike at Grangemouth refinery is still expected to go ahead on Sunday and has triggered panic buying in the north of England. Meanwhile Gold dipped to a three week low of $898.20 a troy ounce from 905.50 on Wednesday.

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.

Weak US home sales worries currency converters

The dollar turned lower after weak US new home sales data more than offset an earlier upward revision to third quarter GDP, while the Pound lost further ground against the euro at the end of a busy day for UK news.

Although US new home sales rose by 1.7 % to 728,000, the reading came in below the 753,000 expected due to substantial downward revisions to previous months. September's reading now stands at 716,000, the lowest rate since January 1996.

The news offset earlier news of an upward revision to US third quarter GDP growth to an annual 4.9 %, the fastest pace of growth in four years. The news had nevertheless failed to give the dollar much of a boost, given the emphasis on the weak outlook for the fourth quarter.

With a large upward revision to third quarter GDP already priced in, the greenback's reaction was muted as players see the third quarter number as solidly in the rearview mirror. The real concern is that fourth quarter GDP may come in below 1.0 %, perhaps well below.

Meanwhile, with the outlook for US growth and interest rate differentials looking increasingly bleak, the dollar remains out of favour. The US dollar had gained earlier in the day on the back of a continued correction after last week's substantial falls against the euro.

It also benefited from gains in US equity markets, though these followed suggestions by the Federal Reserve's vice chairman Donald Kohn overnight that interest rates will be cut in December, a move which is likely to be negative for the dollar.

Elsewhere, the pound continued to lose ground, particularly against the euro, on growing speculation that the Bank of England will cut interest rates possibly as soon next month, or at least early next year.

This followed a very busy day in the UK. Bad news came on the housing front, with the latest Nationwide survey showing a 0.8% monthly fall in house prices, the biggest drop for 12 years, while the Bank of England reported mortgage approvals at their lowest since February 2005.

This was somewhat offset by a stronger-than-expected CBI retail sales survey, which also showed a massive jump in high street prices, but the market largely shrugged this off. The testimony by members of the Bank of England's Monetary Policy Committee before MPs yesterday morning highlighted the highly uncertain outlook for the UK economy and the risks of both a sharp slowdown in economic growth and a spike in inflation.

This left market players concluding that rate-setters are edging nearer to cutting interest rates, but next week's decision is certain to be a very close call.

While the incoming economic news has made the case for an immediate cut far from clear, the recent resurgence in financial market turmoil may prompt the MPC into action. Even if the nine-member body opt to hold fire for the time being, however, they will not put off the inevitable for much longer.
Prices at the London open
GBPUSD – 2.0662
GBPEUR – 1.4012
EURUSD – 1.4743
GBPJPY – 227.44
GBPCHF – 2.3122
GBPAUD – 2.3272
GBPCAD – 2.0566
GBPZAR – 14.0838

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.