UK Market News
The OECD has given the UK government a boost by increasing its forecast for UK growth this year to 1.4% and that it expected growth to accelerate to 2.4% next year. This is in contrast to their view of the World’s economy, which they expect to only grow 2.7% compare to their earlier forecast of 3.1% in May.
Their reasons for the downgrade were the continuing “weakness” in the banking industry.
Another sign of increased confidence in the UK’s prospects came from the latest in line of the Rothchild banking dynasty. Lord Rothschild has shifted his trust’s focus away from the US dollar and increased its exposure to Sterling.
Europe Market News
Yields on Italian bonds have slipped on the countries continued improvement.
France has been labelled the “sick man of Europe” by Holger Schmieding , chief economist at Berenberg according to City AM. The so-called PIGS continued improvement since the earlier bail outs has shifted the world’s gaze back to the more established economy’s performance and France’s exports are not fairing well compared to its peers.
US Market News
Markets continue to rally on the shock move by the incoming head of the FED, Janet Yellen, that interest rates will be kept at low levels for longer than the market expected and that the printing presses will continue for now.
Asian Market News
Worldwide investment into China has beaten last year’s total already with two months to go. Investment levels are already up 5.7% on last year, mainly from other countries in the area such as Thailand and Japan.
