Next Gen News

. Markets floating in the water before the U.S. payroll

Moody . 12 British banks and building . U.S. figures show 60,000 work together to increase

. The agenda for today

1:40 p.m.

A word of warning on U.S. employment figures: some 45,000 workers of Verizon Communications, which had fallen mass Pay in August due to a strike returned to work in September. The exclusion of workers, the number of jobs increased by 58,000, in line with what Wall Street expected.

However, due to the review by 99,000 more jobs were added in July and August than previously thought, an impulse to the economy.

private employment grew 137,000 months past, against only 42,000 in August. But government jobs fell 34,000 and 35,000 people paid local government and the postal service has laid off 5000.

My colleague Katie Allen, now the market for a journalist, says:

The FTSE rose on the news, to be up 73 points, or 1.4%, at 5364 feet around the brand before the data unchanged. Gold also extended gains as bond prices in the U.S., UK and Europe fell.

Wall Street has not yet been opened, but that future stock jumped to indicate a good start, turning positive after jobs data.

13:30:

U.S. employment figures are much stronger than expected: employers hired 103,000 workers last month while Wall Street had expected 60,000. The unemployment rate remained at 9.1%, however. The figures in July and August were also revised upwards, with a profit of 127,000 (85,000) and 57,000 (Execution of an apartment), respectively. The data should allay fears that the economy is heading into a recession.

24:19:

Weather Summary for new noon today. The Dow Jones has just turned positive, even less than a point to 5292. Royal Bank of Scotland, Lloyds Banking Group and Barclays are among the biggest fallers after rating agency Moody fell by 12 British banks and building societies including RBS and Lloyds TSB. RBS fell 3.8%, while Lloyds was down 2.7% and Barclays lost 2.3%.

Markets are stalled in front of key U.S. employment figures in just over an hour. It is expected to show that 50,000 to 60,000 additional jobs were created last month, a modest increase would leave the unemployment rate to 9.1%.

In the UK, inflation has soared factory gate to a maximum of three years, while industrial production in Germany fell in August.

24:09: In Germany, industrial production fell in August, adding further evidence that the slowing European power. The Ministry of Economy said output fell 1% after rising 3.9% in July. A fall in the production of consumer goods was the culprit. The ministry said that German industry has remained on an upward trend despite the recent decline - although he acknowledged that the orders of weakness threatens to undermine the momentum

As the figures came out, the German economy minister Phillip Rösler put on a show of unity with Greek Finance Minister Evangelos Venizelos in Athens. "With the combination of stability that can send a strong signal that we are in Europe and the euro area are ready to fight and defend our attacks against the currencies," said Roesler. Venizelos, meanwhile, said the Greece is full compliance with its emergency loans.

10:51

more reaction to the lowering of Moody. Manthos Delis, banking professor at the Cass Business School, said:

According to Moody is the main reason behind this decision is that the British government would be less likely to support these banks in the case of a ransom.

According to the rating agency, the reduction does not reflect a deterioration of the financial soundness of banks. On the one hand, the reaction of Moody seems reasonable in light of the discussions not to increase the burden on taxpayers even more for a potential bailout.

other hand, Moody (and each rating agency), the main concern should be the strength of banks' portfolios, which, for now, seems to be good shape.

Paul Richardson, the concept of financial planning based in Surrey, was scathing about Moody:

Consumer confidence is already low, but what Moody might make things worse. The chancellor has made every effort to reassure investors and said he was confident that British banks are well capitalized. However, many investors will immediately feel more exposed on the back of this news.

Moody insists that these reductions do not reflect a deterioration in the soundness of the banking system is not relevant. It's about perception and perception is simply false.

people can find comfort in the services supported by the government compensation plan, which protects the savings of £ 85 000 for an individual financial institution. At that time the rating agencies are without regard to financial services.

Moody has his reasons, of course, but many see this break ground as an overreaction - and that banks could cause serious damage if it causes panic countries.

10:39

economist at Nomura is Philip Rush current boom in prices will leave the factory. He concluded that inflationary pressures are likely incompatible with the Bank of England's decision to launch a second dose of quantitative easing yesterday.

No Truce of inflationary pressures in September and throughout the supply chain, prices rose faster than expected. The increase of 1.7% mom entry prices generally fall reverses the previous month while prices recovered. But most worrying is the resistance further down the supply chain, with ex-factory prices rose 0.3% mom. It was not just the result of volatile movements in prices or price "core" producer has also increased by 0.3% mom (0.2% Nomura, Consensus 0.1%).

seemingly relentless pressure on profit margins of companies is the restriction of their ability to absorb the costs, despite the competitive pressures to be high. What is the transmission of increases in input costs seem to be more complete than in the past. The concern of the Bank of England is that this greater willingness to raise prices may also be because companies believe that inflation will remain elevated for longer than the MPC expected. To the extent this is true, inflationary pressures are likely incompatible with the MPC's decision to launch QE2. Yet, fear can be.

10:35

This is a reaction to suggestions that the government might have to inject more capital into Royal Bank of Scotland, Neil Prothero, economist at the Economist Intelligence Unit of The Economist.

unprecedented levels of official support from the beginning of the crisis was based on a return to profitability of UK banks and subsidized premiums important, but there are still underlying weaknesses in the financial sector the needs of banks as a "major refinancing and counterparty risk arising from the interconnection of the European banking system seriously under-capitalized. It has always existed the risk that government intervention may be necessary to support the domestic banking sector, if the conditions of the market took a turn for the worse.

British banks could absorb the losses of the first round of a major depreciation of the Greek sovereign debt, but spread to the economy, especially Ireland, Spain and Italy which banks in the UK have a significant exposure of the banks have become vulnerable even pressure on balance sheets. The delay in moving to Europe to recapitalize banks in the region, with another unfortunate repetition of the tests of resistance of the banks, will focus on major UK banks such as RBS and Lloyds, despite the current conditional capital reserves may be sufficient to fill any perceived gap.

10:13

Louise Cooper, market analyst at BGC Partners, sent us his latest thinking in the Bank of England, European Central Bank markets.

Therefore, if Mr. King is right, why not cut the rate of the ECB and why the stock market has recovered? If the head of the central bank believes that the UK economic situation is so serious, so investors in British banks should be more concerned about his comments, a reduction Moody (since banks are so exposed to cyclical economic conditions ).

I think equity investors has been brought with the political to recapitalize European banks as possible. I want to emphasize that these discussions are just beginning and in the various aspects of research out there, hundreds of billions of euros to be injected into European banks. This does not quickly agree and negotiate with all countries in the euro area for many a coordinated bank rescue is extremely difficult. It seems that there are arguments to simmer between the governments of France and Belgium in terms of how to divide the group Dexia ranking sheet.

ECB to the rescue

So if Jean-Claude Trichet is to save and to provide unlimited liquidity, why Dexia goes bankrupt? Frankly, I am a little confused when I explained why Kevin broker liquidity from the ECB is not unlimited really help. And soon I will write a long explanation of what he says, but in the meantime, I repeat that if the ECB can not fund all the banks out there with no problem, why Dexia bankrupt?

10:12

This is a statement from Lloyds TSB to react to the downgrade by Moody

As part of a rating by a number of financial institutions and a comprehensive reassessment of systemic support, Moody Lloyds were significantly reduced ratings of long-term debt by one notch. It is important to note that two independent rating and short-term notes remain unchanged. We believe this change will have minimal impact on our funding costs.

10:05

"The sound of chickens of rest" is the title of the latest research from the City broker Tullett Prebon. Tim Morgan, Global Head of Research, writes:

Why the outlook for the UK economy has deteriorated seriously and so quickly? The apologists will no doubt try to blame others, and there is some justification to the idea that the headwinds of the global economy has deteriorated sharply in recent weeks. The euro area is clearly staggered to a turning point and, as discussed in a forthcoming report [3], the outlook for the U.S. is clearly worse than was generally recognized to date.

But any attempt to blame the foreigners simply do not wash (and has not cheated on the exchange markets or, for that matter). Growth rate in Britain is one of the lowest in the OECD and its budget deficit is one of the worst. The determination of the coalition government on the deficit only to protect Britain from rate increases, which for a highly indebted countries, it would be an absolute disaster.

Data

looked at the face or head in the sand?

In this context, the opposition called for a soft line on government spending that Dafter always look worse. Let's be very clear on one point which is that any hesitation on the control of public expenditure is cut a catastrophic increase in interest rates. Ed Miliband, to his credit, has been around a recognition of this critical point, even if some of your colleagues are not obtuse.

But neither the opposition nor defeat global pressures on government aid greatly in a time when living standards are falling, the recovery is going up in smoke and the underlying mathematics of the fiscal program are down to us. What is needed - but it is so sorely lacking in the corridors of power -. It is an appreciation, first, what is really happening to the UK economy and, secondly, what steps you can start building a real recovery

then clarify the facts. Between 2003 and 2010, Great Britain - that in this context, we mean both the government and individuals - borrowed an average of 11.2% of GDP each year. This is not sustainable, and has never been. Loans issued this scale apparent "growth", but at a terrible cost, to each £ 1 more than the national production comes at a cost of £ 2.18. Meanwhile, between 1999-2000 and 2009-10, public spending increased by 53% in real terms. Both engines of the economy, then, were the public and private spending. The result of this negligence has coincided with a global banking crisis, but no amount of 'neo-endogenous growth "could hide the fact that national prosperity based on the loan provided the seeds of its own destruction.

The first problem facing the UK, then, is that the two economic engines of the past decade - private debt and public spending - have died in the water. The second (and big) problem is how the era of recklessness distorted economy to organic growth.

The biggest beneficiaries of the estate lending private real estate, construction and financial services. With the era of increasing private debt and more of the truth, these sectors can not grow, which is somewhat of a disadvantage, because they represent nearly 40% of economic output.

Meanwhile, the end of the generosity of public spending has also halted the growth of health care, education and public administration, collectively 18.8% of the economy. With the fall in real incomes that affect retail, so that the total proportion of the British economy, now ex-growth stands at 70%.

9:58:

is a reaction to reduce Moody in the 12 UK banks and building socieites. Rabobank Jane Foley said:

9:43: inflation factory gate in Britain reached its highest level in almost three years, raising doubts about whether the consumer price inflation will be reduced next year, the Bank of England predicts.