Weekly Economics Analysis by Lloyds TSB

Global financial markets this week will focus on industrial production and trade data. Generally, the trend appears to be that industrial output in Europe is finally recovering after the severe bout of destocking earlier in the year and at the end of 2008.

Focus on EU economic trends and BoE Inflation Report

Global financial markets this week will focus on industrial production and trade data. Generally, the trend appears to be that industrial output in Europe is finally recovering after the severe bout of destocking earlier in the year and at the end of 2008. However the UK appears to be lagging at present. Trade data will show that deficits remain wide, but that there is some modest narrowing underway. UK financial market attention will be focused on the Quarterly Inflation Report, where we look for justification for the MPC decision to leave rates on hold and increase QE by £25bn.

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