Pessimism reigns

Friday 24 October 2008 - Pessimism reigns

Presented by Andrew Cates




+ There has been no let-up in the wave of pessimism that has been sweeping around global markets concerning the outlook for the world economy. Asia's equity markets have slumped again overnight led a big fall in the Nikkei and weighed down in particular by news from Sony that it was downgrading its profit outlook by 40%.


+ Nouriel Roubini has been warning in London that panic over hedge funds could actually close markets and that systemic risk is likely to only get bigger. The continued decline in commodity prices and the enormous pressures in the emerging bloc are only adding to the sense of concern.


+ Europe sees the latest raft of purchasing managers surveys today, probably the best forward looking indicators in the economic library, and which we think will continue to signal economic contraction. The last three weeks of data that have been published in the US has seen 90% of releases for economic activity print below consensus forecasts.


+ Today's estimate of UK GDP for Q3 is expected to show the first quarterly contraction in the economy since the early 1990s and one that will probably mark the onset of recession. September's estimate of US existing home sales are also on offer on the data calendar later today.

Category:

News & Politics

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• ubs
• economics
• andrew
• cates
• credit
• financial
• crisis
• markets
• pessimism
• nikkei
• sony
• yen
• hedge
• funds
• systemic
• risk
• russia