UK Economics Update Lower LIBOR will not prevent interest rates falling to 4% The rapid fall in interbank interest rates towards more normal levels is a welcome development but does not negate the need for further cuts in official interest rates. The growing emergence that the... 11th January 2008 · 1 min read
Global Markets Focus US corporate profits to fall sharply in 2008 We expect US corporate profits to fall by around 7.5% this year as the impact of the wider economic slowdown more than offsets any boost to earnings from the weaker dollar. This is not yet fully... 10th January 2008 · 1 min read
Europe Economics Update ECB hawkish for now, but next move will be down M. Trichet’s hawkish tone at today’s press conference confirmed that the ECB is unlikely to follow other major central banks in cutting interest rates in the near future. However, a further slowdown... 10th January 2008 · 1 min read
UK Economics Update Public sector not the key threat to pay growth The inflationary risk posed by the mounting unrest about the Government’s hard-line stance on public sector pay is fairly limited. The main risk to pay growth comes directly from the private sector... 10th January 2008 · 1 min read
UK Economics Update UK rates still heading for 4% Today’s decision by the Monetary Policy Committee to leave interest rates on hold was purely a matter of timing. With the Committee apparently agreed that a significant monetary loosening is required... 10th January 2008 · 1 min read
