Archive for December, 2008
Can Central Banks encourage interbank lending?
As the market expected the ECB tweaked deposit rates to encourage more interbank lending. The ECB cut the rate it pays to deposit overnight money and increased the rate it charges for emergency loans. The concern from the ECB is that whilst they have slashed their base rate at the fastest pace in the ECB’s [...]
December 19, 2008
Tags: consolidate debt loans, ECB, falling interest rates, Interest Rates Posted in: Uncategorized 
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How low can interest rates go?
Another day and more record lows for GBP/euro are currently at all time lows. This cross is trading in uncharted territory and is struggling to find support with many expecting to see parity before the year is out. However, UK retail sales just out at better than expected levels (0.3% versus -0.6%) should lend support [...]
December 18, 2008
Tags: Credit Crunch, Oil, retail sales, UK loans rates, unemployment Posted in: Uncategorized No Comments
Unprecedented Lows BUT where do we go from here?
The Federal Reserve, at their meeting yesterday evening, cut the Federal Funds target rate (the rate at which US Banks can borrow in the overnight) by a massive 75bp to a range of 0% to 0.25% and was additionally very aggressive in the statement that followed. The decision was unanimous amongst the Board, and the [...]
December 17, 2008
Tags: consolidate debt loans, falling interest rates, FED, Interest Rates Posted in: Uncategorized No Comments
The US Dollar has a bumpy ride
Following the marginally weaker than expected data yesterday afternoon and a growing anticipation of a greater than 50bp cut in the Fed Funds target rate this evening. We saw highs in cable and euro at a tad over 1.5350 and 1.3725 respectively before caution again took the upper hand. Today, consolidation at these slightly lower [...]
December 16, 2008
Tags: Credit Crunch, Loan calculator, US loans rates, US mortgage rates Posted in: Uncategorized No Comments
Little new data out over the weekend
Thus most blogs were taken up with re-hashing old news. The automotive and aviation industries obtained most coverage with expectations that the bail-out of the Big 3 US car manufacturers will be looked at again early in the week and re-presented for approval whilst there is a lot of talk afoot that funds will be [...]
December 15, 2008
Tags: consolidate debt loans, Loan calculator, refinancing rates Posted in: Uncategorized No Comments
Global economies continue to feel the pinch
but it is Sterling that continues to bear the brunt of investor’s concerns. The headline in the The Times this morning caused a quick skip in the heartbeat, “Banks under the cosh as £1 tumble towards Euro 1″. Loan Calculator wondered what on earth had occurred overnight !!! As it happened, the headline was very [...]
December 11, 2008
Tags: Credit Crunch, ECB, falling interest rates, Interest Rates, Loan calculator Posted in: Uncategorized No Comments
US auto manufacturers bail-out rejection
looks like an absolute disaster for Stocks, Commodities and just for a change, Sterling. The Senate in the US last night, rejected the $14 billion bail-out plan that would have seen a deferment of the cash crisis at GM and Chrysler much to the dismay of markets that were still operating at the time of [...]
December 11, 2008
Tags: Credit Crunch, falling interest rates, FED, Interest Rates, recession Posted in: Uncategorized No Comments
Continued weak data from Euroland and UK
But neither having a materially long-term effect on exchange rates. The market perception of lower interest rates to come remains unchanged in the market but differences of opinion as to magnitude of cut and timetable are starting to emerge. Comments from Trichet and Andrew Sentence yesterday added to the uncertainty with the former intimating a [...]
December 10, 2008
Tags: ECB, falling interest rates, inflation, Interest Rates, Loan calculator Posted in: Uncategorized No Comments
British retail sales fell at their sharpest annual pace in more than three years
In November, the BRC survey showed on Tuesday in a grim portent of the all important Christmas shopping season. Sales fell 2.6% y/y in November, the sharpest drop since the Easter influenced April 2005. Not a good sign. This morning Loan Calculator was trying to be a bit positive following the rise in house buyer [...]
December 9, 2008
Tags: consolidate debt loans, Loan calculator, UK loans rates, uk recession Posted in: Uncategorized No Comments
Are we nearing the trough of the current cycle?
Only time will tell, but there are increased mutterings that data for the 4th Qtr of 2008 might prove to be as bad as its going to get. With the sharp falls in GDP forecasts for the âindustrial nations’, accompanying massive rises in unemployment, the outlook still looks grim. All the negatives however are starting [...]
December 8, 2008
Tags: Credit Crunch, Loan calculator, UK loans rates, uk recession Posted in: Uncategorized No Comments
