Menu
-
This week is dominated by the current stand-off in the US in regards to the raising of the debt ceiling which has paralysed the government and put the rest of the world on alert.
However news in the UK is more encouraging with the UK’s service sector seeing the fasted growth for over 10 years and 30% of manufacturers looking to recruit which is the highest in over 20 years. The only blip was that UK retail sales fell for the 2nd consecutive month which has got analysts worried about the potential knock on effect for the all important Christmas trade. This flurry of good news has seen the pound rally from recent low of $1.48 to the pound back in July to over $1.61 today.
In the Eurozone the European Central Bank has yet again held rates at 0.5% and their President Mario Drahgi added that they would remain at these levels for an “extended period.” This boosted the euro which rose 0.6% to a 12 month high against the dollar to$1.36. However Mr Drahgi did add a note of caution by stating that he believe the Eurozone recovery to be “weak, fragile and uneven.”
In Asia the World Bank has cut its growth forecast for East Asia from 8.3% to 7.5% due the continued uncertainty in the US, a continued slow down in China’s economy and a falling commodities market.
