Financial Betting Articles

Gathering economic gloom might be enough to put you off your festive good cheer, but don't worry - there is plenty to keep you entertained this week. Top billing goes to the exciting courtroom drama that will play out in the MPC meeting room on Wednesday. Both sides have a compelling case. The verdict for UK interest rates will be read out midday Thursday to a packed gallery, all with a personal interest in the outcome.

Star witness for the prosecution (them wanting a rates cut) is the Council of Mortgage Lenders (CML). We've already seen much wailing and beating of breast from this emotional courtroom performer. "It's terrible, terrible I tell you!!" it starts, dabbing the tear from the corner of its eye. "How will I feed my children if you don't send them rates down!" CML's beef is that the credit crisis is still making international credit markets dysfunctional. As such mortgage lenders are in a perilous state. Plus the UK housing market is taking a nosedive with November seeing the biggest monthly fall in 12 years and new mortgages at a 3 year low.

Any sneering defence barrister worth his salt would stop such emotional manipulation in its tracks. No, for his learned mind, cold hard facts and not tear-strewn doom-mongering will carry the day. His case is full of hard reality. He'll start by pointing out that the Bank of England has committed to oiling the credit markets with extra cash. Then Alliance & Leicester and Bradford & Bingley will turns Queen's evidence by pointing out that they have struck their own multi-billion pound funding deals.

But the prosecution will counter with a jury-pleasing update on oil prices. "Panic over" he'll herald with prices south of $90 and OPEC likely to agree to boost output this week. With inflationary pressure easing, surely a rate cut is needed to help shrivelling economic growth M'lud?

"Tosh and fipsy!" fume the defence - objection! "What about food prices?" they exclaim. Does the jury want to be responsible for rampant inflation?

Whatever the arguments, there is likely to be a hung jury. Which way the majority goes is more difficult to gauge. Many commentators think that the outcome will be a period of probation with rates coming down some time next year.

Elsewhere, market watchers will be entertained (if they like the macabre) by America's continuing woes. Things are continuing to look gloomy across the board and the Fed has another make or break rate decision looming this month. Things are going so poorly that foreign investors are snapping up big chunks of US businesses at fire-sale prices. Just last week, the state investment arm of Abu Dhabi bought a slice of Citigroup. Add to that the $17bn China has spent this year and soon the Yanks won't have anything they can truly call their own any more.

So whatever your view, interest rate weeks are always bound to be tense and exciting affairs. This month's is particularly choice - did someone say Choice? Visit ChoiceOdds.com and make the market movements pay.

The FTSE lost 289.1 ticks or 4.3% of value last month.

Despite all the bad news in the US at the moment, the DOW rallied 4.9% from Tuesday, finishing at 13,371.72 on Friday.

The DAX is picking up a bit of excitement of late. In the first half of November the total of its daily moves was 442.27 ticks. In the second half the total was 892.61 ticks, with 5 days where it moved more than 100 ticks.

It is a scientific fact that a square pizza can NEVER taste as good as a round one.

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