Financial Betting Articles

The problem with economic indicators is that they very rarely sing from the same hymn sheet. So perhaps with no strong signal grabbing the headlines, the MPC did the right thing by keeping interest rates on hold last week. But the balance of opinion is now that a cut is nailed on for February. What can be said is that markets were neither surprised or impressed, with bears everywhere continuing to win the argument.

Despite the general malaise about the UK economy, there are some good(ish) figures popping up. The British Retail Consortium's figure for like-for-like retail sales in December showed only 0.3% growth - paltry and the lowest for 3 years but not disastrous. The big surprise was the Halifax figure for house prices which saw 1.3% growth in December. This dragged the annual figure up to 6.3% from 3.1% in November.

Stateside the equity market's mini-recovery in December has all but petered out, with the trend for the last week being sideways. On the surface of things, it's doom and gloom for the US in 2008. The engine of the US economy seems to be suffering with a sluggish housing market, weak consumer spending and slowing new job creation (down to 18,000 in December).

But hope springs eternal (if you look hard enough). The US Fed chairman, Ben Bernanke, is confident recession can be avoided. As he's the man with his hand on the interest rate lever you'd like to think he would know. In his corner he's got the Institute of International Finance, who predict the US economy will grow 2.3% in 2008. A little more cautiously, the World Bank predict 1.9%. But the investment banks are having none of it. Goldman Sachs have taken time out from spending their gargantuan bonuses to predicted a recession and Merrill Lynch think it's already on us.

One thing that we can say with any certai nty is that Sterling is as weak a kitten at the moment. On Friday, it reached 75.86 pence per Euro, a record low. Its also rapidly retreated from the heady $2 plus heights of not so many weeks ago. The currency's value reflects market sentiment about further interest rate cuts this year, as well as pessimism about the UK economy's prospects. The latter is supported by figures showing new manufacturing orders are at a 2 year low and a report from the Charted Institute of Personnel and Development predicting unemployment to rise to 1.8m in 2008 (5.8% of the workforce).

There's more confusion, uncertainty and indecision out there than you'd see in the England back four. But things might become a little clearer this week with a whole raft of Earth-shaking announcements. Quiver in terror as UK house data comes out on Monday - look on agog as inflation figures over here and in the US hit the newswires Tuesday - run for cover Wednesday when the unemployed claimant count c omes out. Hide under your desk when the Godzilla of the Fed's Beige book bursts on to the scene midweek. But remember - where there's news, there's views, and views equal moves. Get ahead of the news with your views and call the moves at ChoiceOdds.com.

The FTSE shed an average of 29.30 ticks a day last week, falling on 4 out of 5 days. On the same 4 days, the FTSE traded in a range in excess of 100 ticks.

The DAX is on a slide, shedding 4.39% since the start of the year. But over the last 12 months, the DAX has outstripped its cousin indices, growing in excess of 15% compared to the FTSE and DOW which have managed less than 5%.

Since the 24th January last year the Pound has shed 13.44% of its value against the Euro.

Chewing and bubble gum was originally made from chicle, a natural gum from a tropical evergreen tree found in North and South America. The world's largest bubble gum bubble was in excess of 20 inches in diameter.

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