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UK has already returned to growth

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uk recession

UK has already returned to growth, says OECD

Hopes that Britain will avoid a triple-dip recession were bolstered after a leading forecaster said the country had already returned to growth and official figures showed the key services sector expanding at its strongest pace in five months.

 The UK economy will dodge a recession with a return to yearly growth of 0.5pc in the first quarter of this year, according to the OECD.

The UK enjoyed yearly growth of 0.5pc in the first quarter of this year, to be followed by a 1.4pc expansion in the next three months, according to estimates from the Organization for Economic Co-operation and Development.

“The UK is doing fairly well I would say … this avoids a triple-dip in that country,” said Pier Carlo Padoan, the OECD’s chief economist. “We see a global outlook improving after a weak 2012.”

The Paris-based think-tank’s growth projections compared to the UK economy’s 1.2pc contraction in the final three months of last year, as the OECD uses annualised rather than quarterly growth rates. On a quarterly basis, the UK economy shrank by 0.3pc at the end of last year.

The more upbeat outlook was echoed in the US, where officials reported that the world’s biggest economy grew faster than thought in the fourth quarter of last year, at an annual rate of 0.4pc, up from an initial 0.1pc estimate.

The news cheered Wall Street, pushing the S&P 500 share index into fresh highs as it hit 1,567 points at one point, above its 2007 all-time record.

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Current account deficit rises to alarming 6.7% in Q3

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  India’s current account deficit (CAD) widened from 5.4 per cent in the July-September quarter to a record high of 6.7 per cent of GDP in the October-December quarter, driven mainly by a huge trade deficit, said a release by the Reserve Bank of India. This is much higher than the 6.4 percent estimated by a Media poll.  A surge in capital flows helped finance the current account deficit.  “The pickup in capital flows was mainly due to foreign portfolio investment which rose to USD 8.6 billion during Q3 of 2012-13 from USD 1.8 billion in Q3 of the previous year. While loans availed by banks and corporate sector amounted to USD 7.1 billion, net Foreign Direct Investment (FDI) declined to USD 2.5 billion in Q3 of 2012-13 from USD 5 billion in the corresponding quarter of 2011-12,” the RBI release said.  Exports growth during the third quarter was muted as compared with a 7.6 per cent growth in Q3 of 2011-12, the RBI release said.  Imports, however, grew 9.4 per cent, spurred largely by oil and gold imports. This has resulted in the trade deficit widening to USD 59.6 billion in Q3, compared to USD 48.6 billion during the corresponding period of the previous year.
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Nifty Future Daily View – Hurdle & Support for intraday

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nifty-futures

Nifty Future

(Updated on 28.03.13 at 12.15 AM)

Tuesday written that Nifty fut had support at

5625 and advised to observe the 5613 and hurdle at 5654.

Nifty fut took support at 5619.55 and moved

up to 5658.80 and closed at 5634.95

Now for Today…

Supprt @ 5625-5619 for intraday

If breaks below 5615 and not able to move

up to 5630 then see slide up to 5604-5595.

If sustains below 5594-5610 with volumes

then see vertical fall up to 5562-5535.

If trades above 5540 see upside up to 5654-5660.

Hurdle at 5654-5676 for intraday.

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Thought for the Day: Peace, Love and Wisdom

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Sunrise

Todays Thought

Peace, Love and Wisdom

There is an immaculate eternal and constant space within you hidden under different appearances. In that space there is only peace, love and wisdom. Let go and free yourself from the layers that cover that space, and you will uncover the secret of a life of fullness.

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Why Cyprus Is a Special Case

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The Cyprus bailout deal is a big improvement over the first botched attempt. It doesn’t repeat the error of breaching the guarantee on bank deposits up to 100,000 euros. Instead, it restructures the two biggest banks and forces their creditors, including large depositors, to take huge losses.

Yet the euro area’s leaders must do a lot more to convince Europeans and the markets that they have drawn the right lessons from this debacle. They need to say clearly why Cyprus is an exception and commit to integrating the euro area further so that it’s less vulnerable to such crises. They’re failing on both points.

March 26  – John Woods, Hong Kong-based chief investment strategist for Asia Pacific at Citigroup Inc.’s private bank, talks about the economic impact of Cyprus’s banking crisis on the rest of Europe. He speaks with Susan Li and Rishaad Salamat on Bloomberg Television’s “Asia Edge.” 

March 26  – Philippe D’Arvisenet, chief global economist at BNP Paribas SA, talks about Europe’s sovereign debt crisis and the outlook for the euro. Cyprus dodged a disorderly sovereign default and unprecedented exit from the euro by bowing to demands from creditors to shrink its banking system in exchange for 10 billion euros ($13 billion) of aid. D’Arvisenet speaks in Singapore with Haslinda Amin on Bloomberg Television’s “On the Move.”

The head of the euro area group of finance ministers, Jeroen Dijsselbloem, appeared to draw all the wrong conclusions in a March 25 interview, after the new deal was struck. He suggested that the Cyprus pact offered a new template for resolving the debt crisis.

Under this new model, the burden of repairing banks would shift from taxpayers to private creditors. Specifically, Dijsselbloem said he hoped the new approach meant that the 500- billion-euro European Stability Mechanism would never be used to directly recapitalize banks.

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