Sterling Weaken as BOE Shock Market

1.Swiss consumer sentiment index -42 points in Q-3, down from -38 in previous quarterly survey. 16-year low. Versus -43 median forecast

2.German Markit construction index, based on survey of more than 200 construction firms, rose to seasonally adjusted 43.7 in July from 41.0 in June

3.Dutch July CPI eases to +0.2% y/y compared to +1.4% y/y in June. Inflation data much weaker than median forecast of +0.9%

4.Italy June industry output seasonally adjusted -1.2% m/m, work day adjusted -21.9% y/y, much weaker than median forecasts of +0.4%, -20.0% respectively

5.UK new car registrations in July +2.4% y/y. First rise in 15 months

6.UK construction orders rose 18% in Q2 2009 compared to previous quarter , but still down 21% on the year- ONS

7.German factory (manufacturing) orders rose +4.5% m/m in June, much stronger than the median forecast of +0.6%. Biggest gain since June 2007 and fourth consecutive monthly rise. Comes on the back of strong foreign demand

8.Moody’s: Global speculative- grade default rate rose to 10.7% in July from 10.3% in June, surpassing 2002 peak of 10.4%. Seen peaking at 12.2% in Q4 2009 and then declining sharply to 4.4% in July 2010

9.UK commercial property prices rose 0.2% in July, first positive reading since June 2007 – CBRE (World’s largest real estate broker)
Bank of England shocks markets and extends QE to £175 bln from £125 bln. Leaves rates steady, as expected