German government bond yields fall
The yield on influential thirty-year German government bonds showed a marked fall this week amid concerns that European base rates will remain relatively low for some time to come. The European Central Bank has confirmed that the economic outlook both within Europe and around the world has turned downwards over the last few weeks with the US economy in particular showing signs of "cooling off".
As a consequence, the European Central Bank is unlikely to reduce fiscal assistance for the euro zone economy in the short to medium term and indeed base rates will remain at their current level for some time to come. There had been some discussion as to whether the European Central Bank, and European authorities, would look to stifle the threat of inflation in the short to medium term but this appears to have fallen by the wayside.
The indication that the US economy is showing signs of "cooling" is a major blow for the worldwide economy as the US is still the "engine room" of the worldwide economy. Despite earlier hopes that the US economy would drag the worldwide economy higher and back into the boom times, this would appear to be further away than ever today.
Share this..
Related stories
Breakthrough in talks regarding Jaguar Land Rover
It is been revealed that unions in the UK have given an undertaking for flexible working hours in relation to Jaguar Land Rover's Birmingham plant plans. There had been serious concerns that the plant would have been closed down by Indian owners Tata Group but at the last minute the two parties have agreed a compromise which will allow flexible working hours and "intensity" to increase during busy...
Read MoreUK Tops European Corporate Investment League
Despite all of the doom and gloom surrounding the UK economy at this moment in time, it seems as though the UK is still the first port of call for many foreign investors looking to investment corporate funds. A Study by KPMG has shown that the position of the UK in the European market is growing in strength even though the UK has not always been seen as wholly comfortable with the EU state concep...
Read MoreWhat do you know about David William Donald Cameron?
Otherwise known as David Cameron, David William Donald Cameron is the leader of the Conservative party and many believe is on the brink of bringing the Conservatives back to power after a lengthy period in opposition. Born in London on 9 October 1966 David Cameron is one of the younger breed of politicians in the UK who many believe will appeal to younger voters and help reinstate the Conservative...
Read MoreBank of England paints a bleak picture for global economy
Despite reducing UK base rates by half of one percent the Bank of England has tonight painted a very bleak picture of the global economy which it believes is in the "throes of a severe and synchronised downturn". The bank has also highlighted the fact that until the UK credit markets increase liquidity the ongoing reduction in UK base rates will have little impact on the overall performance of the...
Read MoreUK economic growth 'to halve this year'
The rate of growth for the UK economy during 2008 will be half that seen last year, an economics consultancy has predicted. A report from the Centre for Economics and Business Research (CEBR) forecasts that the UK economy will expand by 1.5 per cent this year - less than half the rate of growth of 3.1 per cent seen in 2007. In a previous report CEBR had predicted growth of 1.8 per cent, but said i...
Read More