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by Ashraf Laidi
Posted: Feb 22, 2010 5:00
Comments: 3054
Posted: Feb 22, 2010 5:00
Comments: 3054
Forum Topic:
GBP
Discuss GBP
Next problem is the cost of keeping the elderly into their late 90's, soon to be late 120's with medical advances. I have proposed that all us older generation check into the abatoir at say age 80 (or that to be unaminously agreed) in the interest of lightening the load for young working age taxpayers.
Drug companies must be capped on R&D costs. Don't trouble to develop or market any drug which is unaffordable. Cap should probably be 20/week treatment cost. That will bring the cost of drugs down.
Birth of badly handicapped/deformed babies another unaffordable cost to the taxpayer.
Obesity must be controlled. Too expensive to working age taxpayers. etc etc etc.
Our government have a very long way to go yet. They have hardly started.
Ashraf
Sterling has slid to its lowest levels against a basket of currencies since October last year after yesterdays manufacturing PMI data for April fell short of expectations, to its lowest level for 7 months.
This fall more or less guarantees, if any were needed, that the Bank of England will keep rates unchanged at tomorrows meeting of the MPC committee, as fears about anaemic UK Q2 GDP growth continue to grow. Todays release of April construction PMI is unlikely to change that perception with expectations of a decline to 55.9 from Marchs 56.4 reading.
Even though shop price inflationary pressures continue to remain elevated with food price inflation jumping by 4.7% from 4% the month before, it appears that the central bank will continue to ignore these factors in their deliberations. As a result the pound has slipped back towards its post GDP support level of 1.6430. A break below this support could well target a deeper down move towards 1.6260 and the 55 day MA. Against the euro yesterdays break through the 0.8940 2010 level could well presage further sterling losses towards the 2010 extremes at 0.9150.
By KM of AshrafLaidi.com Staff
Ashraf
From MNI FX Bullets (which all free subscribers must have access to)
STERLING: Next week will be a hectic if compressed one for data,
given that Monday is a bank holiday.
Tuesday will see the release of the
manufacturing PMI, with markets looking to this for some confirmation
that this sector continues to provide a much-need prop for a the still
fragile-looking recovery. CBI distributive trades survey will be
released later that morning, another key release given that the state of
consumer demand has been a key element in the BOE MPC's present
reluctance to hike rates.
Wednesday will see the release of the
construction PMI - which will be examined for evidence of what is going
on in this highly volatile sector, which has been hard hit by the
government's cuts to its capital budget as well as the languishing house
market. The Nationwide HPI will also be released earlier that month and
expectations are that this will do little better than flatline, given
the recent hit to consumer confidence and the imminent fiscal squeeze on
consumers.
Ashraf
UK PRESS: Two of the UK's biggest property companies have provided fresh
warnings about the health of the economy after reporting that business
demand for new commercial space remains fragile, the Telegraph says.
Segro, the warehouse owner, said its vacancy rate increased from 12pc to
12.1pc in the thre months to March 31, with London and the South East
"resilient" but the rest of the UK suffering from "more challenging
economic conditions". Meanwhile, Hammerson, whose portfolio includes the
Bullring shopping centre in Birmingham, said consumer spending in its
centres had been impacted by Government austerity measures and
above-target inflation, the paper says.
Ashraf