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Green shoots for the UK economy?

On Thursday the eagerly anticipated preliminary reading for UK GDP Q1 from the ONS showed that the UK had avoided a dreaded triple-dip recession, for now. Chancellor, George Osborne has been under considerable pressure to change course away from the current path of austerity. Following consecutive readings of poor economic data, criticism from the IMF and a downgrade by Fitch, Osborne has some briefing space. The ONS expect the UK economy to grow by 0.3%, which might be the milestone remembered as one of the first green shoots of economic economy. The better than expected print, led to cable jumping over 100 pips, to trade to its highest price since February.

Analysts now believe that the likelihood of the Bank of England increasing quantitative easing is diminishing, as the economy might begin to pick up without further stimulus. 

Headlines

Chancellor Angela Merkel has made a rare foray into the debate over interest rates in Europe, telling bankers on Thursday that the European Central Bank is caught between the desire of some in Germany for higher rates and the need in struggling euro-zone countries for easier credit - WSJ

China MNI business sentiment indicator for April: 58.5, previous 58.2

Analysts are now expecting a 25bps cut by the ECB next week

The Bank of Japan maintained its unprecedented plan to boost money supply at a policy meeting today, matching economists’ forecasts, hours after a report highlighted deflation’s grip on the economy - Bloomberg

Nomura profit triples to a 7-year high on the back of investment banking - Bloomberg

Goldman Sachs tips Reserve Bank of Australia to cut rates in May followed by another in November

The number of unemployed jobseekers in France surged by 36,900 in March to hit 3.224 million, beating a record set in 1997, the labour ministry says - AFP

SNB Jordan: The Swiss France is still too high, they will continue to hold cap, with the upmost determination

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