Mervyn King, Governor of the Bank of England

Comments coming before tomorrow’s release of GDP figures from the United Kingdom

• Inflation to fall through 2012, Iran tensions main upside risk
• UK banks should build up capital to further improve resilience
• Falling inflation gives scope for more QE if needed
• UK recovery to be arduous, long and uneven

Bobbys Corner-Open Market-Oct.5.2011

Good Morning:

A fairly calm overnight session-especially after yesterday’s see saw in the US equity markets.  For those who missed it-the Dow was off as much as 260 points-but in the latter part of the day the markets rallied to end the day 150 points higher.
 
The Euro picked up-after declining against the USD.  It is now back in the mid 1.33 level.  The GBP lost ground, and moved to the lowest level against the USD in almost 1 year.  UK government data indicated that the economy grew less than expected last quarter.  This will add pressure to the Bank of England to keep interest rates low for the foreseeable future.  Rumors in the market point to the BOE continuing, if not increasing, it’s bond purchasing program.  Additionally, some Asian currencies are seeing strength, as investors anticipate continued monetary easing in Europe and the US to boost the struggling world economies.

 World equity markets rose, and US Futures are also higher at this time.

HAVE A GREAT DAY & GOOD LUCK

UK Construction PMI Data To Be Released at 4:30AM

UK House Price Index Falls Sharply, Better Revision

House Price Index (MoM):   Survey: 0.0%  Actual: -0.6%  Prior: 0.2%  Revised: 0.3%

House Price Index (YoY):   Survey: 0.4%  Actual: -0.4%  Prior: -0.4% 

August vs July 2011 Change
Monthly % Change:   -0.6 vs 0.3
3 Month % Change:  0.1 vs 0.3
Yearly % Change: -0.4 vs -0.4
Average Price: 165,914 vs 168,731

German GDP & UK House Price Index Due at 2AM

UK Consumer Credit & Lending Lower, Mortgage Aprovals Slightly Rise

Consumer Credit:   Survey: 0.4B   Actual: 0.2B  Prior: 0.4B 

Lending:   Survey: 0.8B   Actual: 0.7B   Prior: -0.1B  Revised:  0.0B

Mortgage Aprovals:   Survey: 49.0K   Actual: 49.2K  Prior: 48.4K   Revised: 48.5K

Bobbys Corner-Open Market-April.29.2011

Good Morning:

London markets were closed today-as the UK takes a national holiday for the Royal wedding.

In EZ news the German Retail Sales data was very weak-as consumers in the regions largest economy slowed down on their spending, as the high price of energy takes a bite out of their discretionary income.  This data may put into question the speed that the ECB will continue to increase interest rates.
CHF was strong again-as data suggested that the economy is operating smoothly, and growing.

The continued USD weakness is due in part to the Fed’s monetary ploicy staying on hold, and the economy limping ahead, not really gaining any significant traction. 

Asian and European equity markets are mixed-and US Futures are higher at this time.

Oil continues to soar-along with gold.

Oil:$113.22                                      Gold:$1539.20         

HAVE A GREAT DAY-WEEKEND & GOOD LUCK

Bobbys Corner-Open Market-April.27.2011

Good Morning:

Risk was back on center stage overnight-as Australian CPI data posted better than expected-pushing the Aussie through the 1.08 handle.
In the UK-GDP printed at .5%, which showed that the UK economy is fairly robust, even with their austerity measures and weak consumer sentiment.  The GBP rallied as many investors were anticipating weaker data.

Markets will be waiting for 2:15 PM this afternoon-which will signal the end of the FOMC meeting-and will feature Fed Chairman Bernanke’s press conference.  Markets are not expecting any interest rate increase at this time-but they are looking for any signal of when the Fed’s QE policy will be coming to an  end.

S&P cut Japan’s sovereign rating outlook to negative.  Costs for rebuilding the country after the March 11 earthquake will no doubt hurt the countries ability to produce products for export, which is the backbone of Japan’s economy.

Asian equity markets were mixed-Europe and US Futures are higher at this time.

Oil:$112.40                                                                 Gold:$1508.90

HAVE A GREAT DAY & GOOD LUCK

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