The British stock market is in a deep red. Bears captured the market from the start bidding. FTSE 100 index tumbled to 5,290.13 points, giving the bears -86.28 (-1.60%). Barclays PLC (LON: BARC) is near its lowest level 323.20 points, losing -10.45 (-3.13%).
Dollar may fall to a record low by the end of this year. This assumption is expressed most European economists. The exchange rate of the dollar, which is at a high level may fall a few days. The future of the dollar in the hands of China. Franklin Roosevelt made a mistake, but not stimulating the economy through public spending, and listening to the advice advocates reducing the deficit during his second campaign. As a result, the U.S. economy returned to a recession.
Because of the credit crunch in Europe, the UK banks can not be returned to the Government funds allocated during the financial crisis. If this situation drags on, it is possible revision of the plan of support. Financial institutions must find a new source of funding for repayment of state credit of approximately $ 300 billion British pounds, issued by the Government and the Bank of England. His term expires early next year. Lack of funds intended to cover the expense of Debt Capital Markets, however, according to the protocol of the May meeting of the Committee on monetary policy released this week among officials is growing concern that the crisis banks are not able to get financial support from the bonded investors.
On Friday, May 14 at the European government bond market initiative, the second consecutive day, owned bulls. Excessive demand for protective assets increased against a background of speculation about the fact that Greece fails to pay their debts. That view, in particular, the head of Deutsche Bank Josef Ackermann, who declared that for the full repayment of its debts, Greece should make “unbelievable effort.” Statement by J. Ackerman served as the impetus for the beginning of active purchases of German and French bonds.
There passed another day without bad economic news. After the grand announcement of large-scale plan of salvation Greece movements in the market had eased, and by the end of the week and at all disappeared. It is only on hand the dollar, which strengthened against most of its rivals, even though not very positive data from the economic front.