Giving evidence on recent QE to the Treasury Select Committee.. Went ahead with QE in October due to financial market volatility Important that CB powers are  decided by parliament FPC should not discriminate between industry or company sectors QE undertaken as there we saw real risks of below target inflation

–Q2 Real Household disposable income +1.2% q/q; -1.2% y/y –Q2 Saving Ratio 7.4% vs 5.9% in Q1 LONDON (MNI) — Real household disposable income rose at the fastest pace for two years in the second quarter, while the saving ratio increased, figures released, figures released by National Statistics showed Tuesday. While the figures appear to [...]

–Adds Detail To Version Transmitted At 0830 GMT –UK BBA: Sep Sa Mortgage Approvals 33,130 Vs 35,069 Aug –UK BBA: Sep Sa Remortgage Approvals 24,498 Vs 26,643 Aug –UK BBA: Sep Value House Purchase Loans STG4.846Bn Vs Stg5.16Bn –UK BBA: Sep Net Credit Card Credit Up Stg172Mn LONDON (MNI) – September mortgage approvals saw a [...]

–Q2 Current Account Deficit Stg2.022bn Vs Stg4.12bn Q1 –Q2 Current Account Deficit/GDP Ratio -0.5%; highest since 1998 LONDON (MNI) — The UK’s current account deficit narrowed sharply in the second quarter as earnings on portfolio investments abroad rose sharply, figures released by National Statistics showed Tuesday. The current account shortfall narrowed to Stg2.022 billion in [...]

UK DATA: Household Real Income Up Fastest Since Q2 2009 –Q2 Real Household disposable income +1.2% q/q; -1.2% y/y –Q2 Saving Ratio 7.4% vs 5.9% in Q2 ———————————————————————— Real household disposable income rose at the fastest pace for two years in the second quarter, while the saving ratio increased, figures released, figures released by National [...]

–UK BBA: Sep Sa Mortgage Approvals 33,130 Vs 35,069 Aug –UK BBA: Sep Sa Remortgage Approvals 24,498 Vs 26,643 Aug –UK BBA: Sep Value House Purchase Loans STG4.846Bn Vs Stg5.16Bn –UK BBA: Sep Net Credit Card Credit Up Stg172Mn LONDON (MNI) – September mortgage approvals saw a surprise fall, having risen in the four previous [...]

UK DATA: Q2 Current Account Deficit Stg2.022bn Vs Stg4.12bn Q1 –Q2 Current Account Deficit/GDP Ratio -0.5%; highest since 1998 ———————————————————————— The UK’s current account deficit narrowed sharply in the second quarter as earnings on portfolio investments abroad rose sharply, figures released by National Statistics showed Tuesday. The current account shortfall narrowed to Stg2.022 billion in [...]

UK DATA: Sep Mortgage Approvals Post Surprise Fall: BBA –UK BBA: Sep Sa Mortgage Approvals 33,130 Vs 35,069 Aug –UK BBA: Sep Sa Remortgage Approvals 24,498 Vs 26,643 Aug –UK BBA: Sep Value House Purchase Loans STG4.846Bn Vs Stg5.16Bn –UK BBA: Sep Net Credit Card Credit Up Stg172Mn ———————————————————————— After four monthly rises, mortgage approvals [...]

Lowest since Q1 2008 and much lower than consensus of  £9.3 bln. c/a to GDP ratio rose to -0.5% from -1.1% in Q1 Net Mortgage lending +£0.761 bln in Sep vs +£0.799 bln in Aug Mortgage approvals 33,130 in Sep vs 35,0679 in Aug  (+7.7% y/y) Cable’s steady around 1.5975

AUD/USD been much the star performer last few sessions, with some talk on the street that the cause has been an M&A deal connection. Peabody  are buying a controlling stake in Macarthur Coal with amounts being mentioned in the region of 4-6 billion AUD. This along with hawkish comments overnight from RBA’s Battellino have kept  [...]

Before entering catastrophic scenarios, indebted countries should put their wealth to work through privatisation, or leveraging property rights Very difficult to secure political consensus for having big bazookas, only possible if risk of not having one seen as greater The less taxpayers’ money you spend at start of contagion, the more taxpayers’ money you may [...]

That’s the spirit Believes can prevent uncontrolled effects like in Lehman case in Greek crisis

Apparently sell orders seen layered from 1.6020 all the way to 1.6060.  I reckon they read my risk event comment We’re down at 1.6000 from session high 1.6021.

ITALY DATA: Aug retail sales were unchanged m/m in seasonally-adjusted terms on a drop in non-food sales after posting three consecutive m/m declines. In y/y terms, retails sales fell 0.3%, after declining 2.3% in July. –The three month-moving average contracted 0.4% in the months from June to August, compared with the previous 3 months. –Food [...]

Take it for what you will. Apparently the talk isn’t exactly new.

Cable up at 1.6020 from around 1.5985 when I sat down. There is some event risk coming up soon for sterling in the form of Mervyn Kings’ testimony before the Treasury Select Committee. Given the recent rise of 75 bln in QE,  gotta expect some dovish comments from the main man.

Proposals for leveraging EFSF resemble a market incentive programme (oh-eh, I await details) Reuters reporting. EUR/USD touch firmer on news, but not that you’d really notice, presently at 1.3917.555 UPDATE:  Oh I say, we’re actually moving, EUR/USD up at 1.3940.  As mentioned earlier sell orders seen clustered 1.3950/65, stops through 1.3970 before barrier option interest at [...]

Just how I like it. EUR/USD at 1.3906,  effectively where it was when I sat down 10 hours ago (well it feels like 10 hours) Middle Eastern buying noted on the brief dip below 1.3900.  Deja vu all over again. Hopefully my headline will result in a flurry of activity, just to prove me wrong.  [...]

FRANCE DATA: October consumer morale 82; September 80, August 83 – Above expected; MNI analysts survey median forecast 79 – Buying-propensity up three points from September – Future inflation worries fall two points from September – Jobless fears down 12 points from September’s level – See MNI MainWire for details

From unrevised previous 80, better than median forecast of 79.