UK economy contracts again but lets look ahead

The UK economy remained in the doldrums in Q3 as it unexpectedly fell .4% q/o/q, the 6th quarter in a row of contraction for the first time since at least the 1950’s. Expectations were for a rise of .2%. The pound is down sharply in response but the FTSE is higher as is the rest of Europe as the data is perceived as old news as the Euro region Oct manufacturing and services composite index rose to the highest since Dec ’07 at 53, 1.4 pts above forecasts and the Oct German IFO business confidence figure rose to the highest since Sept ’08 (about in line with estimates). The two most important members of the Fed and I’ll refer to them as King Doves, Bernanke and Kohn, speak today. Bernanke’s speech is on financial regulation and I’m sure he just sticks to that topic. Kohn speaks on the financial crisis. Sept Existing Home Sales are expected to total 5.35mm, the most since Aug ’07 helped out by the home buying tax credit and 4 year olds.

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