Archived IMT (2008.10.07)

UK NIESR estimate for GDP at -0.2% from previous -0.2%. The NIESR urges Bank of England on a 50-bp rate cut this Thursday. Separately, Sep Nationwide consumer confidence fell to 50 from previous 53. GBP markets are bracing for Wednesday's 50bn rescue package by the UK govt to rescue UK banks, which includes partial nationalisations with taxpayers' money. Will the program prove to have little effect as the TARP program in the US? Sterling joins high yielders in selling off during Asian session following the fresh 5-year lows in US equity indices. Once again, markets seem to have only one thing on their mind and that is interest rate cuts. Anything less has shown to be insufficient. I stand by this morning's article on NYSE margin debt predicting another 20% decline in US indices.