The signs initially look good with a determination to do the right thing and do it early. A feel good factor might easily spread very quickly through the country and filter to a stronger Dollar over the coming months.

The assistance to both Banks and economies being pledged by Governments worldwide is also being viewed as positive with expectations that it will directly enhance Corporate earnings which in turn will boost equity markets.

On the downside, the situation in the world’s largest financial institutions is still very unclear. Further assistance for Bank of America and a restructuring at Citibank at the end of last week plus the release of the details for the next UK bank bail-out plan, this morning have done little to alleviate concerns in Financial Markets.

The news that RBS was predicting that it had made a £20 billion loss last year and that the UK Government were to become a 70% shareholder in the institution (following the conversion of their holding of preference shares into ordinary shares) spooked the Stock Market early on.

Longer term it is questionable whether the labour Government want to own and run the countries clearing banks but for the time being, they obviously feel the cost of so doing is worth going through.

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