Good morning. Apparently the UK economy is headed for a long haul. Inflation data released yesterday broke the annualized 5% ceiling, with September CPI reaching 5.2% annually. This raises serious concerns about stagflation \u2013 a situation when the economy is stagnant, but inflation soars. Mervyn King may be forced to take a relook at the quantitative easing measures announced recently unless prices show signs of stabilization. A two-day \u2018mother of all\u2019 strike started today in Greece, ahead of the government\u2019s further austerity measures due to be voted in parliament on Thursday. Furtger painful adjustments are on the way as Greece has lived beyond its means for far too long.<\/p>\n
Meanwhile German newspaper Handelsblatt reported the government is considering if the euro zone bail-out fund \u2013 the EFSF, could be used to help members pay their interest expenses on their debts, citing sources. Assistance could be provided by suspending interest expenses with the European Financial Stability Facility issuing zero-coupon bonds. The Financial Times Deutschland reported Wednesday that German Finance Minister Wolfgang Schaeuble has suggested increasing the EFSF\u2019s lending capacity to \u20ac1 trillion from the present \u20ac440 billion. This has the German politicians worried as the country \u2013 practically acting as Europe\u2019s paymaster, will have to commit more than \u20ac211 billion, as previously agreed.<\/p>\n
GBP\/EURO \u2013 1.1402
\nGBP\/US$ \u2013 1.5716
\nGBP\/CHF \u2013 1.4147
\nGBP\/CAN$ – 1.5924
\nGBP\/AUS$ \u2013 1.5389
\nGBP\/ZAR \u2013 12.5210
\nGBP\/JPY \u2013 120.87
\nGBP\/HKD \u2013 12.2498
\nGBP\/NZD \u2013 1.9732
\nGBP\/SEK \u2013 10.4232<\/p>\n