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G D P To Double As Recovery Locks In

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http://www.bloomberg.com/news/2010-07-22/u-k-economic-growth-probably-doubled-on-manufacturing-consumer-recovery.html

U.K. Economic Growth Probably Doubled on Manufacturing, Consumer Recovery

By Svenja O’Donnell - Jul 22, 2010

Policy maker David Miles said in a speech that inflation, which remains above the government’s upper 3 percent limit, will cool and the recovery may falter.

U.K. economic growth probably doubled in the second quarter as stronger manufacturing and consumer demand boosted the recovery.

Gross domestic product rose 0.6 percent in the three months through June after increasing 0.3 percent in the previous quarter, the median of 32 forecasts in a Bloomberg news survey shows. The data, the first for the quarter from a Group of Seven nation, will be released by the Office for National Statistics at 9:30 a.m. in London.

While falling unemployment is lifting retail sales and the pound’s decline is benefiting exporters, the outlook for the recovery has been damped by planned spending cuts to reduce the deficit. The government’s own fiscal monitor warned that the budget squeeze may hurt growth, and minutes from the Bank of England’s July meeting showed policy makers discussed the possibility of further monetary easing to aid the economy.

There has been some bounce in consumer spending, so by recent standards, we’re expecting a good number,” Jonathan Loynes, chief European economist at Capital Economics Ltd. in London, said in a telephone interview. “But this may be the best quarter. We’re looking at a fairly weak global environment and a pretty big fiscal squeeze, and this means the recovery is going to remain pretty sluggish.”

Consumer Spending

U.K. retail sales rose more than economists forecast in June, data yesterday showed. In the three months through June, sales jumped 1.7 percent, the most in two years...../

Standard & Poor’s last week maintained its negative outlook on Britain’s top credit rating, saying its projections for the economy are less optimistic than those in the budget. There is a “material risk” that the U.K. debt burden may approach a level “incompatible with the AAA rating,” S&P said.

Edited by Realistbear

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0.3% to 0.6%* brilliant. They can put interest rates up now that the recovery is assured.

*estimate. Subject to being 'unexpectedly' lower

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0.3% to 0.6%* brilliant. They can put interest rates up now that the recovery is assured.

*estimate. Subject to being 'unexpectedly' lower

Phew - I thought they meant there was going to be 100% inflation or another halving in the value of the pound...

Edited by AvidFan

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Double digit inflation in quite a few sectors / goods now.

The Bankrupt of England are on a path to impoverish everybody, except their banking buddies - just to make the figures (and themselves) look good.

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£160bn in stimulus borrowing by the government and all they can manage is a guesstimate of 0.6%.

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I'm with S&P on this one. Without QE I very much doubt the growth figures would have become positive. You can probably also argue that it is mainly ZIRP driving consumer spending as the indebted have more money to throw around and the savers are fed-up with the low rates so are spending. With the lag seeming endless from cuts being announced to cuts actually happening the debt is still rising at the same pace as the deficit hasn't gone down. I for one have not seen any new wealth creating industries sprout up either, in fact the industrial estate I work on is turning into a ghost town.

It feels like the UK is a snake eating its own tail and sooner or later there won't be anything left to eat.

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FOREX has bought the good news--Pound is flying up this morning. Although it may be more to do with the apparent growing scepticism about the European banks as ours are all okay as they have government (our) money to keep them going--at least as long as bonus season.

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FOREX has bought the good news--Pound is flying up this morning. Although it may be more to do with the apparent growing scepticism about the European banks as ours are all okay as they have government (our) money to keep them going--at least as long as bonus season.

Sick isn't it? The UK government acting as the Sugar Daddy makes it all OK. I wish the taxpayer backed every trading decision I made, if so I would be able to dabble with some wild leverage with no risk. If I win I keep the money, if I loose the taxpayer takes the loss - sounds dreamy :angry:

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Sick isn't it? The UK government acting as the Sugar Daddy makes it all OK. I wish the taxpayer backed every trading decision I made, if so I would be able to dabble with some wild leverage with no risk. If I win I keep the money, if I loose the taxpayer takes the loss - sounds dreamy :angry:

That, in a few words, is the entire Bankster scam summed up.

They planned this for years knowing that they were "too big to fail" and had nothing to lose but lots of bonuses to gain. Our nation's economy rests on corruption and fraud on a grand scale. The day of reckoning will come when the world no longer trusts us. I believe we are approaching that point a lot faster than our politicians realise.

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That, in a few words, is the entire Bankster scam summed up.

They planned this for years knowing that they were "too big to fail" and had nothing to lose but lots of bonuses to gain. Our nation's economy rests on corruption and fraud on a grand scale. The day of reckoning will come when the world no longer trusts us. I believe we are approaching that point a lot faster than our politicians realise.

Yep. There was one tiny flaw in the banker's plan though.

The people they lent the money to, ........ are also taxpayers. um.... doh!

Edited by worst time buyer

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There is a Titanic sized rocket on the EU launchpad ready to blast off at 9:30 am when the Stress Test results are announced amid popping Champagne bottles, smiling faces and self-congratulatory pats on the back all round. Choo think? Stocks up 5% or more on the news?

Or will it be a contrary contrarian play with the markets saying the good news about the results has already been priced in--days ago when the results started to be leaked?

12 minutes to blast off and counting...........................

LONDON (
Reuters
) - European shares turned positive on Friday morning, with miners gaining on stronger copper prices and some banks reversing earlier losses ahead of the results of stress tests.

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6 Minutes to go!! Can you FEEEL the excitement building?

BERLIN (
AP
) -- Europe faces another moment of truth in its simmering debt crisis on Friday as regulators release the results of "stress tests" on 91 banks across the continent, an exercise that some fear could fail to credibly answer markets' questions.
One observer reported seeing hundreds of bottles of 1959 Dom Perignon being taken into the offices of the European Central Bank last night ready for some form of a celebration. This has fuelled speculation that the results will be more positive than originally planned, er anticipated.
*
The hope is that the operation, like stress tests carried out on 19 U.S. banks a year ago, will help shore up confidence. In that exercise, 10 banks were told to raise about $75 billion in extra capital.

*Italics mine, of course.

Edited by Realistbear

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There is a Titanic sized rocket on the EU launchpad ready to blast off at 9:30 am when the Stress Test results are announced amid popping Champagne bottles, smiling faces and self-congratulatory pats on the back all round. Choo think? Stocks up 5% or more on the news?

So it is confirmed for 9:30am then? ForexFactory is still showing it as 'Tentative.'

GBP/USD is now 1.355 and rising :o

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6 Minutes to go!! Can you FEEEL the excitement building?

BERLIN (
AP
) -- Europe faces another moment of truth in its simmering debt crisis on Friday as regulators release the results of "stress tests" on 91 banks across the continent, an exercise that some fear could fail to credibly answer markets' questions.
One observer reported seeing hundreds of bottles of 1959 Dom Perignon being taken into the offices of the European Central Bank last night ready for some form of a celebration. This has fuelled speculation that the results will be more positive than originally planned, er anticipated.
*
The hope is that the operation, like stress tests carried out on 19 U.S. banks a year ago, will help shore up confidence. In that exercise, 10 banks were told to raise about $75 billion in extra capital.

*Italics mine, of course.

and theres me thinking the central bank was supposed to be a sober, impartial, controlling influence, finger on the pulse controlling authority.

there should be 100% knowledge of who and how each and every bank under their supervision will perform.

If its a releif the many passed, then the LIE that central banks know what they are doing is exposed. clearly its a lie.

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1 GBP =Inverse:

1.53527

Its up about 1.5 cents on the rumour.

3 minutes to go!

ive disgraced myself at the crease.

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  • 258 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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