Europe & UK Diving Into Recessions

According to Reuters and official reports showing that Britain has had a 0.5% drop in the economy in the past three months. This has been the first fallin 16 years and is feared that the recession will be a very long one which will affect Britain and Europe very badly.

"It's a very emphatic entry into recession which underlines the need for dramatic rate cuts -- which we think the Bank of England will deliver," said Brian Hilliard at Societe Generale.

Reuters conducted a poll earlier int he week, results which showed majority of people expecting a half point cut from the BoE in two weeks to 4.0 percent and a series of cuts early 2009, arriving at 3.0 percent by the June meeting.

Source: Reuters