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Archive for the ‘POUND (Britain)’ Category

WE’RE A NATION ON THE BRINK OF GOING BANKRUPT (UK)

Posted by Gilmour Poincaree on January 19, 2009

11:29 PM on 18th January 2009

by Peter Oborne

PUBLISHED BY ‘THE DAILY MAIL’ (UK)

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PUBLISHED BY ‘THE DAILY MAIL’ (UK)

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Posted in BANKING SYSTEMS, CENTRAL BANKS, COMMERCE, CURRENCIES, ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, INDUSTRIAL PRODUCTION, INDUSTRIES, INTERNATIONAL, POUND (Britain), PUBLIC SECTOR AND STATE OWNED ENTERPRISES, RECESSION, RESTRUCTURING OF PRIVATE COMPANIES, RESTRUCTURING OF THE PUBLIC SECTOR, THE FLOW OF INVESTMENTS, UNITED KINGDOM | Leave a Comment »

BLANK CHEQUE FOR THE BANKS: BILLIONS MORE TAXPAYERS’ CASH AT RISK IN NEW BAIL-OUT AS BROWN PLEDGES SUPPORT FOR TOXIC LOANS

Posted by Gilmour Poincaree on January 19, 2009

Sunday, January 18, 2009

by James Chapman and Ian Drury

PUBLISHED BY ‘THE DAILY MAIL’ (UK)

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘THE DAILY MAIL’ (UK)

Posted in BANKING SYSTEMS, CENTRAL BANKS, ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FINANCIAL SERVICES INDUSTRIES, INTERNATIONAL, POUND (Britain), PUBLIC SECTOR AND STATE OWNED ENTERPRISES, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, RESTRUCTURING OF THE PUBLIC SECTOR, THE FLOW OF INVESTMENTS, UNITED KINGDOM | Leave a Comment »

TORIES LACK CREDIBILITY ON THE ECONOMY (UK)

Posted by Gilmour Poincaree on January 12, 2009

Saturday, 10 January 2009

by Jeremy Warner

PUBLISHED BY ‘THE INDEPENDENT’ (UK)

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PUBLISHED BY ‘THE INDEPENDENT’ (UK)

Posted in BANKING SYSTEMS, ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, INTERNATIONAL, POUND (Britain), PUBLIC SECTOR AND STATE OWNED ENTERPRISES, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, STATE TARIFFS, THE FLOW OF INVESTMENTS, THE WORKERS, UNITED KINGDOM | Leave a Comment »

£60,000 A YEAR: THAT’S HOW MUCH THE RECESSION IS COSTING EVERY FAMILY (UK)

Posted by Gilmour Poincaree on January 1, 2009

1:29 AM on 31st December 2008

by Sam Fleming

PUBLISHED BY ‘THE DAILY MAIL’ (UK)

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PUBLISHED BY ‘THE DAILY MAIL’ (UK)

Posted in ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, FOREIGN WORK FORCE - LEGAL, INDUSTRIAL PRODUCTION, INDUSTRIES, INTERNATIONAL, NATIONAL WORK FORCES, POUND (Britain), RECESSION, THE FLOW OF INVESTMENTS, THE WORK MARKET, THE WORKERS, UNITED KINGDOM | Leave a Comment »

STERLING SLIDES DOWN GLOBAL LEAGUE TABLE (UK)

Posted by Gilmour Poincaree on December 31, 2008

31 December 2008, 9:58am

Sam Fleming – Daily Mail

PUBLISHED BY ‘THIS IS MONEY’ (UK)

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PUBLISHED BY ‘THIS IS MONEY’ (UK)

Posted in BANKING SYSTEMS, CENTRAL BANKS, ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, INTERNATIONAL, POUND (Britain), RECESSION, UNITED KINGDOM | Leave a Comment »

WE NEED A MORAL VISION AS WELL AS MONEY TO REBUILD BRITAIN – AFTER A YEAR OF MELTDOWN AND MISSED OPPORTUNITIES, WE WILL REQUIRE WISDOM, IMAGINATION AND A NEW ETHIC IF WE ARE TO RECOVER

Posted by Gilmour Poincaree on December 29, 2008

Sunday 28 December 2008

by Will Hutton – The Observer

PUBLISHED BY ‘THE GUARDIAN’ (UK)

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PUBLISHED BY ‘THE GUARDIAN’ (UK)

Posted in BANKING SYSTEMS, CENTRAL BANKS, ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FINANCIAL SERVICES INDUSTRIES, INDUSTRIAL PRODUCTION, INDUSTRIES, INTERNATIONAL, MACROECONOMY, POUND (Britain), PUBLIC SECTOR AND STATE OWNED ENTERPRISES, RECESSION, REGULATIONS AND BUSINESS TRANSPARENCY, RESTRUCTURING OF PRIVATE COMPANIES, RESTRUCTURING OF THE PUBLIC SECTOR, STOCK MARKETS, UNITED KINGDOM | Leave a Comment »

WOOLWORTHS TO SHUT DOWN 200 STORES – THE END FOR WOOLWORTHS, A CENTURY-OLD BRITISH RETAIL INSTITUTION, WILL MOVE A STEP CLOSER WITH THE SHUTTING DOWN OF A QUARTER OF ITS STORES (UK)

Posted by Gilmour Poincaree on December 28, 2008

Vol XXXI – NO. 283 – Sunday – 28th DECEMBER 2008

Gulf Daily News – the voice of Bahrain

PUBLISHED BY ‘THE GULF DAILY NEWS’ (Bahrain)

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PUBLISHED BY ‘THE GULF DAILY NEWS’ (Bahrain)

Posted in COMMERCE, DEPRESSION, ECONOMIC CONJUNCTURE, ECONOMY, ENGLAND, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, FOREIGN WORK FORCE - LEGAL, INDUSTRIAL PRODUCTION, INDUSTRIES, INTERNATIONAL, NATIONAL WORK FORCES, POUND (Britain), RECESSION, THE FLOW OF INVESTMENTS, THE WORK MARKET, THE WORKERS, UNEMPLOYMENT, UNITED KINGDOM | Leave a Comment »

US DOLLAR LOWER VS EURO IN THIN TRADES

Posted by Gilmour Poincaree on December 27, 2008

11:44:00 12/27/2008

Agence France-Presse

PUBLISHED BY ‘THE PHILIPPINE DAILY INQUIRER’ (Philippines)

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘THE PHILIPPINE DAILY INQUIRER’ (Philippines)

Posted in BANKING SYSTEM - USA, BANKRUPTCIES - USA, CURRENCIES, DOLLAR (USA), ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, EURO, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, HOUSING CRISIS - USA, INDUSTRIAL PRODUCTION - USA, INDUSTRIES - USA, INTERNATIONAL, NATIONAL DEBT - USA, POUND (Britain), RECESSION, THE EUROPEAN UNION, THE LAST DAYS OF GEORGE WALKER BUSH - 2008/Jan. 2009, TRADE DEFICIT - USA, UNITED KINGDOM, USA | Leave a Comment »

END OF THE ELDORADO DREAM: A plunging pound and property crash have left thousands of expat Britons on the breadline

Posted by Gilmour Poincaree on December 20, 2008

1:31 AM on 20th December 2008

by Tom Rawstorne

PUBLISHED BY ‘THE DAILY MAIL’ (UK)

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘THE DAILY MAIL’ (UK)

Posted in ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, INTERNATIONAL, NEW ZEALAND, POUND (Britain), RECESSION, STOCK MARKETS, THE FLOW OF INVESTMENTS | Leave a Comment »

NEW HOUSING STARTS AT LOWEST LEVEL SINCE 1924 (UK)

Posted by Gilmour Poincaree on December 17, 2008

December 15, 2008

by Grainne Gilmore – Times Online

PUBLISHED BY ‘THE NEW YORK TIMES’

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PUBLISHED BY ‘THE NEW YORK TIMES’

Posted in BANKING SYSTEMS, CONSTRUCTION INDUSTRIES, ECONOMIC CONJUNCTURE, ECONOMY, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, INDUSTRIAL PRODUCTION, INDUSTRIES, INTERNATIONAL, POUND (Britain), RECESSION, THE FLOW OF INVESTMENTS, UNITED KINGDOM | Leave a Comment »

DOLLAR LOWER, GOLD FALLS IN EUROPEAN AFTERNOON TRADING

Posted by Gilmour Poincaree on December 16, 2008

December 15, 2008 – 11:10 AM

Associated Press

PUBLISHED BY ‘THE STAR TRIBUNE’ (USA)

LONDON – The U.S. dollar was lower against other major currencies in European trading Monday afternoon. Gold fell.

The euro traded at $1.3650, up from $1.3371 late Friday in New York.

Other dollar rates:

_ 90.67 Japanese yen, down from 91.12

_ 1.1599 Swiss francs, down from 1.1767

_ 1.2341 Canadian dollars, down from 1.2432

The British pound was quoted at $1.5303, up from $1.4969.

Gold traded in London at $826.00 per troy ounce, down from $826.50 late Friday.

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘THE STAR TRIBUNE’ (USA)

Posted in CANADA, DOLLAR (USA), ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, EURO, EUROPE, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, GOLD, INTERNATIONAL, POUND (Britain), RECESSION, SWITZERLAND, THE LAST DAYS OF GEORGE WALKER BUSH - 2008/Jan. 2009, UNITED KINGDOM, USA | Leave a Comment »

POUND SLUMPS TO RECORD LOW OF £1.11 AGAINST THE EURO AS CURRENCIES EDGE TOWARDS PARITY

Posted by Gilmour Poincaree on December 16, 2008

4:55 PM on 15th December 2008

by Daily Mail Reporter

PUBLISHED BY ‘THE DAILY MAIL’ (UK)

The pound slumped to fresh lows against the euro today as the two currencies edged closer to parity.

At its low, one pound bought just 1.1102 euros – its latest in a series of record plunges against the single European currency in recent days.

Some holidaymakers travelling to Europe are reportedly already receiving less than one euro for their pound at bureaux de change, where commission is charged.

Sterling has dropped around 13 per cent against the euro in the past two months as the Bank of England has slashed interest rates in its attempt to stave off a deep and prolonged recession.

UK rates have dropped to 2 per cent, below those in the eurozone after a 1.5 per cent cut in November and a 1 per cent cut earlier this month, which has compounded the pound’s woes.

The weaker currency could provide a boost to UK exporters but the economic woes of major export markets such as the U.S. and Europe is hitting demand.

It is thought short-selling – where investors sell assets such as shares or currencies in the hope of buying them back later at a lower price and pocketing the difference – is also behind the pound’s slide.

The pound has also suffered big recent falls against the dollar but was holding steady at just under 1.50 U.S. dollars today.

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘THE DAILY MAIL’ (UK)

Posted in CURRENCIES, DOLLAR (USA), ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, EURO, EUROPE, EUROPEAN CENTRAL BANK, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, INTERNATIONAL, POUND (Britain), RECESSION, THE EUROPEAN UNION, THE LAST DAYS OF GEORGE WALKER BUSH - 2008/Jan. 2009, UNITED KINGDOM, USA | Leave a Comment »

POUND CONTINUES FALL AGAINST EURO – Sterling has fallen to a fresh record low against the euro, while the value of the dollar has declined on talks about possible US rate cuts

Posted by Gilmour Poincaree on December 15, 2008

Monday, 15 December 2008

PUBLISHED BY ‘BBC NEWS’ (UK)

The pound touched a record low of 1.1084 euros, which made one euro worth 90.22p, before recovering slightly to 1.1196 euros.

Meanwhile, the dollar fell as analysts predicted the Federal Reserve would cut interest rates on Tuesday.

The dollar fell to $1.3662 against the euro and $1.5294 against sterling.

POUND STERLING v EURO: 15 December 2008

Sterling has now hit record lows against the euro for six trading days in a row.

“Sterling remains under pressure on continued UK economic weakness,” said Geoff Kendrick at UBS.

Bail-out factor

The dollar declined on Monday on worries over the strength of the US economy, and on the uncertainty surrounding the bail-out of US carmakers.

“An interim bail-out plan for US automakers by the Bush administration is certainly weighing on the dollar, with many being sceptical as to how the industry can cope in the longer term and instead thinking that letting the market take its course would be a preferred route,” said currency analyst James Hughes at CMC Markets.

The euro was supported by suggestions from European Central Bank officials that interest rates in the eurozone might not fall too much further.

Interest rates are at 2.5% in the eurozone, compared with 2% in the UK and 1% in the US.

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘BBC NEWS’ (UK)

Posted in BANKING SYSTEM - USA, BANKING SYSTEMS, CENTRAL BANKS, CURRENCIES, DOLLAR (USA), ECONOMIC CONJUNCTURE, ECONOMY, ECONOMY - USA, EURO, EUROPE, EUROPEAN CENTRAL BANK, FINANCIAL CRISIS - USA - 2008/2009, FINANCIAL CRISIS 2008/2009, INTERNATIONAL, POUND (Britain), RECESSION, THE LAST DAYS OF GEORGE WALKER BUSH - 2008/Jan. 2009, UNITED KINGDOM, USA | Leave a Comment »

STERLING SUFFERS, BUT UK INTERVENTION UNLIKELY

Posted by Gilmour Poincaree on November 23, 2008

November 21, 2008 – Reuters

By some measures, sterling’s recent slide is even greater than the fall in late 1992 when it was ejected from a group of European currencies, but the chances of a repeat rescue attempt from the Bank of England are minimal.

The doomed attempt 16 years ago to take on currency traders, most notably George Soros, to keep sterling in the Exchange Rate Mechanism cost around two-thirds of UK foreign exchange reserves and scarred the collective conscience at the BoE and Treasury.

But unless sterling’s fall becomes disorderly in the eyes of UK officials and threatens the stability of financial markets and business and trade with the rest of the world, analysts say the BoE and UK Treasury will be loath to try anything similar.

Indeed, as BoE officials have indicated, an export-boosting, weak currency may be one of the few bright spots on the horizon for the UK economy otherwise ravaged by the tumbling housing market and collapse of credit.

“The key issue for UK financial officials is to get the economy moving, to try to prevent a slowdown next year from being more pronounced,” said Trevor Williams, head of group economic research at Lloyds TSB in London.

“To some extent a weaker currency helps in that effort … so it’s the lesser of two evils.”

Sterling has tumbled 16 percent against the dollar so far this quarter, compared with more than 15.3 percent in September-December 1992. Implied volatility on one-month sterling/dollar currency options shot up to nearly 30 percent earlier this month, eclipsing a jump to 22 percent in October 1992.

During that period, UK authorities burned through as much as an estimated $30 billion by many accounts in an unsuccessful bid to stem the pound’s drop before permanently withdrawing from the ERM.

According to Willem Buiter, professor at the London School of Economics and former BoE policymaker, the depreciation of sterling’s effective exchange rate in the past year is larger than that in the year following the UK’s exit from ERM.

“There can be little doubt, however, that there is a point at which the weakness of sterling ceases to be the correction of an anomaly and becomes an anomaly and a problem. I believe we are close to that point,” Buiter said this week on his blog http://blogs.ft.com/maverecon/.

But he ruled out the likelihood of the BoE wading back into FX markets to support the pound this time around, even though “a triple crisis” of sterling, UK sovereign debt and banking is a real threat.

“There is zero chance of the BoE intervening either on its own behalf or as agent of the government, unless the sterling forex market were to seize up or become illiquid and disorderly. There is no sign of that,” he said.

Sterling traded around $1.49 against the dollar on Friday, and analysts say authorities are willing to see sterling weaken towards a fair value range of $1.40-1.50 and a fall significantly under $1.40 would be needed for the prospect of intervention to even reach the table.

DEBT DEMAND

Sterling has fallen 25 percent against the dollar this year, hitting a 6-1/2-year low around $1.45 last week, when it also hit a record low against the euro of 86.62 pence and a 13-year trough on a trade-weighted basis at 80.5.

After the pound tumbled following the BoE’s 150 basis point cut in interest rates earlier this month, BoE Governor Mervyn King said that its fall over the past year was not surprising and was an inevitable part of rebalancing the UK economy.

UK Prime Minister Gordon Brown has also weighed in, blasting a suggestion from the opposition Conservative party that plans for the government to use borrowed money to spend its way out of the recession could trigger a run on the pound.

The pound’s slide so far has not fanned inflation risks and by common consent, having long been overvalued, analysts say authorities are happy to have it weaken.

Nor has it scared investors away from UK government bonds, which really would be a concern for policymakers. Demand for safe-haven bonds has helped to push the two-year gilt yield below 2 percent this week for the first time ever and 10-year yields below 4 percent.

“At the moment, we’re not seeing sterling weakness adversely affecting either the gilt market or bond yields or any government auction,” said Mansoor Mohi-uddin, chief currency strategist at UBS in Zurich.

He added that at the moment, a drop in demand for UK debt would likely be one of the few situations in which UK authorities would consider shoring up the currency, particularly given government plans to borrow its way out of the recession.

But analysts at Bank of New York Mellon say this may be happening already. They recently pointed out that outflows from UK fixed income instruments since September have offset around 75 percent of all the inflows seen since 2004.

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘FINANCIAL MIRROR’ (Cyprus)

Posted in BANKING SYSTEMS, CENTRAL BANKS, CURRENCIES, ECONOMIC CONJUNCTURE, ECONOMY, ENGLAND, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, INTERNATIONAL, POUND (Britain), RECESSION, THE FLOW OF INVESTMENTS, UNITED KINGDOM | Leave a Comment »

POUND SINKS TO RECORD LOW AGAINST THE EURO – First property. Then shares. Now sterling is slumping. Sean O’Grady explains what the decline means for us

Posted by Gilmour Poincaree on November 14, 2008

Friday, 14 November 2008

In July, £1 would still buy $2; lower than its recent record of $2.11 set last November, but healthy THE POUND - Getty Imagesenough for shopping trips to New York to make sense. Yesterday, sterling was trading at about $1.48, a six-year low. Macy’s and Sachs of Fifth Avenue may soon notice a sharp decline in the number of British accents at the tills.

Our currency has also been bouncing along the bottom against the euro, which is now worth about 84p, its highest since the single currency was launched in 1999.

Suddenly the idea of parity – £1 = €1 – hoves into view. Broadly speaking, sterling has had a more violent battering in recent months than it endured after it famously fell out of the European Exchange Rate Mechanism on “Black Wednesday”, 16 September 1992. The pound has fallen 25 per cent against the dollar and 15 per cent versus the euro this year. It has, you might say, had a bit of a pounding.

The reasons for sterling’s weakness are not difficult to see. To some extent, it is simply an adjustment to the way the pound has been overvalued for years: its fair value is about $1.50, according to the Organisation for Economic Co-operation and Development.

What’s more, the UK is evidently headed for recession and the Bank of England is predicted to cut interest rates to historically low levels, maybe even below 1 per cent over the course of next year – the lowest level since the Bank was granted its charter in 1694. Such meagre prospective rewards for investors and the general belief that sterling assets have further to fall has prompted a sharp sell-off in the currency.

Both the Governor of the Bank, Mervyn King, and the Chancellor of the Exchequer admitted on Wednesday that the country was facing a sharp, if short, recession. Few independent economists believe the UK will recover quite as quickly as the authorities forecast – or that this country is well placed to cope with the downturn. The IMF says that the UK’s will be the most marked contraction in output – down 1.3 per cent – among the major advanced economies. Unemployment stands at 1.8 million, and will almost certainly climb to two million by Christmas and three million by 2010.

Yesterday, Europe’s largest economy, Germany, the engine of the UK’s largest market, the eurozone, confirmed it had entered its worst recession in 12 years or more. Investors are also becoming alarmed by the size of the British Government’s budget deficit, predicted by the Chancellor to top £90m before long. The prospect of a large quantity of UK government securities being issued to pay for the shortfall and various bank rescues has raised concerns about the way the economy is being run and longer term worries about inflation and growth.

There is also a positive dollar story. One of the consequences of the recent financial turmoil was a flight to safety, with short-term (one week, say, or one month) US Treasury securities, the favoured haven of international capital, with the reassurance of the US government behind them; the Swiss franc was another notable beneficiary of this trend. Sterling has not enjoyed that same prestige. The Australian dollar has also languished unloved, a victim of the fall in commodity prices and the slowing Chinese economy.

Should the depreciation of sterling turn into a rout, we may even see the current policy of aggressive cuts in interest rates by the Bank of England suspended, if not reversed. For the moment, the Bank seems content to watch sterling fall. Although economic theory teaches that a weak pound could lead to inflation, the very poor state of the domestic demand limits the scope of manufacturers and others to pass on price increases in the shops.

Nor has the pound declined by enough to transform our balance of trade. Export orders remain weak, despite the low level of sterling, because demand in Britain’s main markets – the rest of Europe, North America, Japan and China – remains so feeble. It will, in other words, need an even more savage discounting of the dollar/euro/yen prices of Scotch whisky, Range Rovers and Richard Rogers’ buildings to stimulate demand for them and generate more foreign exchange earnings.

However, the Bank of England has pledged to act if sterling’s fall becomes uncontrollable. A pause in the Bank’s policy of slashing interest rates would have a depressing impact on the wider economy – with house prices falling further, consumer confidence staying low and the credit crunch again restricting the supply of credit for businesses and consumers.

Against a basket of currencies weighted according to the UK’ s trade, sterling is down about 20 per cent on this time last year, a “pretty hefty” depreciation, in the words of the Bank of England’s Deputy Governor for Monetary Policy, Charles Bean.

It is one of the more severe of the many bouts of weakness the pound has suffered since the Second World War.

It may be many years before a shopping trip to Manhattan or a Swiss skiing break seems quite the bargain it used to be.

CLICK HERE FOR THE ORIGINAL ARTICLE

PUBLISHED BY ‘THE INDEPENDENT’ (UK)

Posted in CENTRAL BANKS, CURRENCIES, DOLLAR (USA), ECONOMIC CONJUNCTURE, ECONOMY, EURO, FINANCIAL CRISIS 2008/2009, INTERNATIONAL, POUND (Britain) | Leave a Comment »