BRIC meet to discuss IMF further financial support for Europe

Worldwide Currencies to look out for

• World leaders of the BRICS which are made up of Brazil, Russia, India, China and South Africa. BRICS economies are meeting at the annual World Bank and IMF summit next week to discuss providing further financial support for Europe. BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China
• Consumer Price Index figures and Q2 Employment Change figures for the Eurozone will be published today where particular attention by market analysts will be paid to EU inflation as the current stance on interest rate within the ECB has changed.
• United States have a speech by Fed Chairman Ben Bernanke today who will release plans and data about the following subjects employment, manufacturing and the US inflation data.
• The markets will be paying attention to the Swiss National Bank’s monetary policy assessment, although it may be to soon to truly gauge their views on the currency peg introduced earlier in the month

ELSEWHERE

• Although policy makers rally to offer assurances for Greece the BRIC countries turn their attention to growth within the EEA.
• European Commission moves to improve bailout terms for economies of Portugal and Ireland in the hope of improving stability and enhancing liquidity – which has knock on positive effects on UK exposure to Irish lending.
• EURUSD begins to rise again as Merkel/Sarkosy/Papandreou conference call goes fairly well.
• Increasing numbers of savers, including financial institutions, are withdrawing their money from potential troubled EU banks
• Soc Gen and Credit Agricole have their credit ratings downgraded by Moody’s ratings agency – but Bank of France governor rules out nationalising its banks; and other European leaders jump to rule out the potential of another Lehman Brothers scenario
• Strong amount of data from the United States return a broadly flat projection on retail sales and Purchasing Price Index
• European Commission president Barroso alludes to the potential for Eurobonds to play a part in stock market revitalisation.
• RNBZ leave interest rates on hold as widely expected but still remain hawkish.

IN THE UK

• UK Claimant Count Change came in lower than expected based on month on month figures.  Those claiming last month dropped to 20.3k from expectation of 34.8k
• The Average Earnings Index posted better than expected figures.  Average earnings increased at a pace of 2.8%
• The pound lost further traction against the euro, which has nearly recovered to its pre-week commencing levels on the back of Greek assurances
• USD remains strong against GBP, trading within a narrow range.  Prices moved between highs of 1.57741 and lows of 1.57303
• Youth unemployment rose by 78k to 973k
• UK Retail Sales posted surprisingly better than expected figures this morning, despite the nationwide riots, sales fell less than expected in August.

                          

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