For the week ending 8 December 2008
Highlights
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The US labour market deteriorated sharply in November.
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G7 leading economic indicators are declining at an alarming pace.
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The monetary transmission mechanism remains impaired.
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Brent crude oil briefly fell below $40 a barrel last week.
Views
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US non-farm payrolls fell 533,000 in November and are expected to continue to decline by 300,000-400,000 a month for the next six months.
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The global PMI hit its lowest level on record in November and until monetary transmission re-normalises, leading indicators are likely to continue declining.
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Commercial banks continue to raise cash levels on their balance sheets at the expense of household and corporate sector lending. Central bank have a number of additional policy options available to them to combat the credit crisis.
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It appears as if speculators may increasingly be participating in the oil sell off.
Markets returns source Datastream price index for equities, total return for bonds, local market terms. This document has been produced based on Henderson Global Investors' research and analysis and represents our house view. The information is made available to clients only incidentally. Unless otherwise indicated, the source for all data is Henderson Global Investors. Any reference to individual companies is purely for the purpose of illustration and should not be construed as a recommendation to buy or sell or advice in relation to investment, legal or tax matters.