By DUNCAN SCOTT 20/08/2010
US jobless rate rises to 9 month high
The figure for total jobless claims in the US rose by 12,000 in the week ending 14th August and now sits at around 500,000 which is above all expectations. This has led to further uncertainty in the markets this week following on from last weeks announcement by the Federal Reserve to buyback their own debt. Economists in the US believe that this news will lead to a slowdown in growth in Q2 and this has fuelled further declines in the S&P 500 which fell 1.7% by the close on Wednesday, while crude oil declined to a six week low.
UK retail sales are upbeat
Figures came out this week that sales in the retail space grew much faster in July than expected. Compared to June, volumes soared 1.1% when analysts forecasted a 0.4% rise. The major winners were jewellery and sports equipment while food sales fell. This is promising data that spending from the public is still increasing and has not slipped back following the World Cup as was expected. Whilst it contributes to a positive outlook for economic growth, investors should take this with a pinch of salt as the impact of the emergency budget has not yet taken effect.
100 days of Coalition Government
This week marked the 100th day of the existing coalition Government in the UK. The emergency budget outlined the cuts that were expected but a recent opinion poll suggests that 57% of people are disappointed with the performance thus far. Depending which side of the fence you sit on, some political figures will tell you that 43% support is cause for celebration. David Cameron has fared well in the public eye but people are still uncertain as to whether a coalition is beneficial for Britain.
And finally,
If, like me, you ended up watching the football World Cup over the summer with the volume turned down to drown out the constant groan of the Vuvuzela’s, you may not be pleased to hear that it has made its way into the Oxford Dictionary this week. It is just one of 2,000 new words to be included with others including Buzzkill, Frenemy and Staycation, but I will let you look up the definitions of those yourself.