UK Market news
UK inflation has stuck stubbornly at 2.7% from August into September, this is despite a sharp fall in fuel prices over that period, according to the CPI rate. This was attributed to a slower fall in air fares. Using the RPI rate inflation fell slightly from 3.3% to 3.2%. This could have some serious bearing on UK interest rates as the Bank of England has stated it will not raise rates unless unemployment falls below 7% OR inflation is still above 2.5% in 18 months time.
During his trip to China George Osborne has announced changes to VISA requirements and bank regulations to help establish the UK as the main hub from Chinese finance in Europe.
Europe
Europe saw a surprise increase in industrial output of 1% during August which is higher than expected. Portugal led the way with a 8% increase.
The Republic of Ireland is expected to have completed its Eurozone bailout by the end of this year and is on course to not only meet all of its obligations but beat them by reducing its deficit by 0.3% over target.
Asia
The Chinese unit of currency renminbi or yuan reached an all time high against the dollar as continued stalemate in the US weakens the dollar. The currency reached 6.1415 per US dollar.
India’s rate of inflation continues to soar as it reaches 6.46% despite the government recently raising interest rates to 7.5% to stem the rise. The stalling economy continues to have an effect.
