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Week Ahead: a brief let-up for Britain’s economy

We preview the main financial events of the coming week: the forecast is for showers, with a brief spell of sunshine.

 

Look stateside for real market movers

While all of this matters to Brits enduring the recession, the string of UK data is not stuff that can significantly move global markets.

Appearances for the FSA’s Lord Turner and Barclays’ recently resigned chief operating officer Jerry del Missier in front of the Treasury Committee, which is investigating Libor rate-rigging, could get more airtime.

And few major figures are due from the eurozone, although there is a meeting of finance ministers scheduled for the end of the week, where more details of Spain’s bank bailout could emerge.

Instead, a bulky diary for US statophiles – and investors – is more likely to sway markets next week. Data on industrial production, retail sales, inflation and manufacturing are all due from across the Atlantic.

And America’s market-shifting corporate earnings season continues. In addition, a testimony due from Ben Bernanke, the chairman of the US Federal Reserve, will have traders salivating as they hope again for signs that the central bank will flood the world with US dollars.

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7 comments so far. Why not have your say?

dogdays

Jul 14, 2012 at 12:07

With low global demand I would expect deflation to be the order of the day with of couse the occasional oil blip due to trouble in the middle east.

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alan franklin

Jul 15, 2012 at 10:28

The unemployment figures mentioned are a joke, as they do not take into account the millions (up to five million according to this report -http://www.thesun.co.uk/sol/homepage/news/3254131/We-are-living-in-a-shirkers-paradise-in-the-UK.html)

on sickness and other benefits.

Britain is a great place not to work, whether you are an illegal immigrant, seen pouring into the country daily at ports and airports, expecially in the next few weeks, or just bone lazy. I know of those in the latter category, content to stretch out imaginary ailments to get their weekly handout for fags etc.

Yes, of course the truly ill should be helped. But why then are people often offered "work for cash" by those " on the sick"?

The idea that this shambles of a society, where little in the way of basic education fits the young for work, is going to have some kind of economic recovery any time soon is the biggest joke I have seen in weeks.

Will we recover? Not until the unlikely day that we rediscover basic morality and the difference between right and wrong. That, of course, involves being "judgemental," one of the cardinal sins of the PC society.

We also need to quit the drain - in every sense - that the EU is on Britain. To do that, vote UKIP.

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AndyP via mobile

Jul 15, 2012 at 13:00

"the leeway it (BoE) needs to extend its recession-fighting quantitative easing (QE) scheme, which is inflationary."

This is NOT proven. The only real evidence we have about the effect of QE comes from Japan, which shows two things. One that it doesn't work very well, and two, that it most certainly is not inflationary. Just look at their current and last decade of rate levels.

Well done

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colin wilson

Jul 15, 2012 at 20:36

So very true Alan.

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insider

Jul 15, 2012 at 22:59

Lower inflation is irrelevant when you have not had a pay rise for 3 years!

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Sungai Petani

Jul 16, 2012 at 12:25

Alan:

With you a almost all the way Alan; pity you spoilt it with your last two words.

Insider:

If you haven't had a pay rise for 3 years lower inflation is certainly not irrelevant. If your pay is static the last thing you want is rising prices.

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Rose G

Jul 17, 2012 at 11:10

The whole argument has lost me somewhat. None of the so called economists were able to forecast the situation with the banks, and yet, here we go again, worrying about the economy.

As far as I am concerned, they have all lost the plot - my understanding of the consumer society we live in, is that we have all been duped into thinking life was easy by the huge amounts of credit we have been offered by the commercial sector and are now paying for this.

I also understand that the consumer society has become soaked up with the numerous gadgets they have been sold - consumerism does not bring about a happy person, it encourages people to spend money they do not have.

The society we live in seems to require that we all spend more than we earn - our youngsters are encouraged to get into debt by the policies our governments; starting as an indebted student, government policies ensures that you will be paying this debt off for the rest of the next 50 years, guaranteed money for the Student Loan Company & its chief exec.

We cannot boost an economy where there has been saturation - the reason we are selling cars to the up and coming countries, is because we have saturated the market in Europe - we already all have cars, some families 2 to 3 even. We own homes, some own 2 to 3 already - where then are the future customers to boost the economy?

As for the economists and their doom and gloom, good news is that if the Mayan prophecy has any virtue, we will not be around to worry about it.

My concern for the near future is to see the end of my working life, next step, a future outside of Europe.

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