Investment Markets Overview — W/E 16th January 2015

After spending the past five years trying to re-flate by way of a £375BN QE gamble and other tax-payer funded stimulus measures deemed necessary to avoid the ogre of “De-Flation,” UK policy-makers were forced onto the back foot this week as the county’s latest “inflation gauges,” fell ever closer to outright deflation. As the December CPI reading fell to 0.1%, a 15-year low, and wholesale prices, aka PPI, came in at -2.6% and – 11.5% annualised, the Bank of England and the UK Treasury were at pains to reassure that it’s “good deflation” with lower energy costs putting extra cash in the consumers pocket. Of course what they failed to mention, aside of the obvious fact that their QE initiative has failed miserably and the collapsing Oil price is just one part of a commodities basket that has been trending lower for over 6-years now, is to point out the increased costs for indebted consumers to service their massive collective £1,500,000,000,000 of debt, plus the reality that taxes and “real cuts” will have to increase as the UK Debt/GDP jumps ever higher. A massive policy reverse was evident at the Swiss National Bank, who abandoned the franc’s cap against the euro just two days after bank officials reaffirmed it as, “a pillar of its monetary policy.” Trust these guys at your peril.

16 Jan 15

Subscribe to the Full Investment Markets Overview Newsletter which contains the following:-

Additional Commentaries:
•US economic data . . .
•Euro-Zone . . .
•The UK . . .
•Out East . . .
•The $US index . . .
•Within the commodities complex . . .
•Economic data due next week includes . . .

Perhaps the most important events of next week, for both investors’ and for the Euro-zone ……

Charts:
1. Indices Weekly
2. US Consumer Sentiment V US Retail Sales
3. Swiss Nation Bank Euro Holdings
4. Japan Trust lending V Japan M3 MS
5.Commodity YTD  Moves

Table:

13 Indices, 11 columns of detailed information, for accurate analysis

The Cradle of Democracy’s Chance to Shape Europe

Click Here to view Details of the full version of this Newsletter which includes full text and detailed Charts for each section

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