Britain's Recession
December 23, 2008
U.K. GDP sank 0.6% not annualized last quarter, five times faster than U.S. GDP. Such was the worst outcome in 71 quarters yet will look mild compared to what fourth-quarter and 1Q09 figures are likely to show. British personal consumption (-0.2%) was very resilient in comparison with its U.S. counterpart, but U.K. investment (-2.8%) was […] More
U.S. Growth Before the Collapse
December 23, 2008
Final revised figures show a 0.51% annualized drop of real GDP in the third quarter, as a negative 3.54 percentage point (ppt) drag from personal consumption (off 2.75 ppts) and investment (-0.79 ppts) was mitigated by net exports (+1.15 ppts), government spending (+0.84 ppts) and unplanned inventory building (+0.84 ppts). GDP still eked out a […] More
Central Bank Watch
Chinese Rate Cut Statement Reveals Little
December 23, 2008
A statement on the PBOC web site merely details the further easing of monetary policy announced yesterday without explaining why the actions were taken. But such was the fifth rate cut following moves on September 15, October 8, October 29, and November 26. And a recent round of monthly indicators points to a much more […] More
Central Bank Watch
National Bank of Poland Cuts Main Reference Rate by 75 Basis Points to 5.0%
December 23, 2008
A 75-bp rate reduction surpassed expectations for a 50-bp cut. Along with an easing in November of 25 basis points, the central bank has reversed four earlier increases this year of 25 basis points each January, February, March and June and thus restored interest rates to their levels at the start of this year. More […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Deeper Recessions in Britain and New Zealand
December 23, 2008
Asian stocks fell, led by a drop of 4.9% in China on disappointment interest rates were not cut more sharply. Equities fell 2.9% in Taiwan, 2.8% in Hong Kong, 2.4% in India, 3.0% in South Korea, and 1.2% in Singapore. Thailand (+1.5%) bucked the trend. Australian stocks eased 0.7%. In Europe, the German Dax and […] More
New Overnight Developments Abroad - Daily Update
Monday Executive Recap
December 23, 2008
The dollar rose 1.1% against the yen, surpassing the 90 level, but lost some marginal ground against the euro and its trade-weighted index. Most equities fell in Asia, Europe, and North America. Oil climbed back above $40, and gold rose too. Chinese interest rates were cut 27 basis points. The new 5.31% lending rate is […] More
