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It is only a few weeks since quantitative easing programmes were launched on both sides of the Atlantic – but already the effectiveness of the measures is being questioned. That is because the purchase of government bonds by both the US Federal Reserve and the Bank of England is not helping sustain lower yields. And it raises [...] Markets are on a positive feel following yesterdays outline by Tim Geithner on the Public Private Investment Program in the US. The plan involves the US government buying up toxic assets held by banks which will allow the banks to free up their balance sheets. At the moment the debt sits with the banks and [...] Shares in London jumped for a third successive day, giving hope that the cloud of gloom over the financial system is now lifting. The benchmark FTSE 100 index jumped almost 3pc, rising 110.31 points to 3,863.99, while shares on Wall Street were also higher in late trading. Markets were boosted by a statement from Barclays [...] Interest rates are now as close as they can get to zero without causing malfunctions in the financial system. In this new world, with the Bank of England shorn of its main tool for influencing the economy, the policymakers in Threadneedle Street have to turn to unconventional tools. Some have been tried before with differing degrees of [...] UK house prices fell 2.3pc in February and by a record 17.8pc year-on-year, according to mortgage lender Halifax. The sharp fall wiped out any optimism created by the surprise 2pc rise reported for January following a sustained period of falls. Average house prices in February slid to £160,327, down from £194,953 in the same month a year [...] The Pound held up well yesterday as the latest inflation data confirmed that CPI fell 0.7% in January bringing the annualized level to 3.0% which is down slightly from Decembers 3.1%. The 3.0% level is still well above the Bank Of England’s 2% target for inflation and this data suggests that interest rates may [...] Lots of data yesterday in the UK, of particular interest was the Bank Of England inflation report which showed inflation at just 0.5% in two years. This means more interest rate cuts and the ever increasing probability of quantitative easing. It seems that the Bank of England will try a plethora of measures to kick [...] But neither having a materially long-term effect on exchange rates. The market perception of lower interest rates to come remains unchanged in the market but differences of opinion as to magnitude of cut and timetable are starting to emerge. Comments from Trichet and Andrew Sentence yesterday added to the uncertainty with the former intimating a [...] Data scheduled to be released today/tomorrow from the German states followed by the figure for the country as a whole, are expected to show a further profound slowdown in perceived inflation. The overall figure is expected to show a fall in the November CPI of 0.2% with HICP at +1.7%. This, coupled with recent weak [...] The UK Office for National Statistics yesterday reported that the headline inflation rate had its biggest 1-month decline in the past 10 years. The CPI year-on-year rate was reported at 4.5% higher in October compared to a 5.2% annual rise in the year to September. The core CPI number (which does not include price moves [...] Registered Office in England, 24 Charlton Drive, GL53 8ES, UK- 3506015 • Data Protection Registration Number- PZ5407728
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