Month of April, 2008

The pound was lifted from recent record lows hit against the euro this morning, with the single currency feeling pressure from poor European bank news and a failure to push above $1.59.

But weak fundamentals for the pound remained as a string of poor data continued to paint a downbeat picture of Britain's economy.

Sterling ticked up versus the euro this morning as investors looked ahead to mortgage data for clues on whether the Bank of England will cut interest rates next week or next month.

The main focus, though, remained on interest rate expectations, with bets of a near term rate cut scaled back slightly after data on Tuesday showed manufacturers hiking prices at record rates, while input costs hit a 13-year peak.

Mortgage approvals, seen as a forward-looking gauge of the housing market, are expected to match December's series low of 72,000 in February.

Sterling strengthened for a third straight day against the euro this morning, recovering from a record low on Monday as a slight return of investor confidence encouraged a move back into the high-yielding currency.

But poor sentiment for the pound was reflected in sterling falling against the dollar in choppy conditions, as a gloomy outlook on the UK economy kept investors focused on prospects for more interest rate cuts from the current 5.25%.

Ireland are heading for an even more severe downtown, the big French and German insurers are fleeing property debt in Spain but for France the outlook remains promising due, in part, to lower household debt than their eurozone neighbours.

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THERE are several articles in the press today reporting that France has managed to avoid the credit crunch. French banks have not changed their lending behaviour compared with recent overhauls in the UK, Spanish and Irish institutions.

Other reasons given are that french property prices start much lower than the UK. But people have the same purchasing power in France as the UK.

And finally, President Sarkozy's new tax breaks offer interest relief on morgages  in an effort to make ownership more attractive to the french.

Sterling fell this morning sliding near a record low against the Euro after surprisingly weak UK housing data fuelled speculation of an aggressive interest rate cut by the B of E this Thursday.

Halifax, the nation's largest mortgage lender, announced figures that showed house prices in Britain fell 2.5% in March, posting their sharpest monthly decline since September 1992 and suggesting the deterioration in the housing market may be speeding up.

IT's a confusing and much asked about subject. Moira O'Neill offers some sound advice to expats in France regarding the current inheritance tax laws and to get your taxes sorted before moving abroad.

Sterling sank to new lows against the euro this morning, hitting a record low further beyond the 80p mark as investors weighed expectations for a UK interest rate cut against steadier euro zone monetary policy.
Surrounded by poor economic data and fallout from the well documented global credit crunch, the B of E is expected to put rising inflation pressures to one side at 12:00pm and opt for a 25 basis point
rate cut from 5.25%.

Sterling fell slightly against the Euro this morning, dropping back to near an all-time
low as investors remained pessimistic on prospects for the economy despite a
rate cut the previous session. The B of E
cut rates by 25 basis points to 5% on Thursday and said credit conditions had

THE National Federation of Estate Agents in France (FNAIM) realease their first quarter analysis.

The main highlights:

Despite a 1% drop in house prices in the first quarter FNAIM are not expecting them to go into widespread decline.

A slight fall in interest rates is good news for borrowers.

This period brought a market correction that is expected to continue.

Prices are stabilising.

But double digit increases in almost all provincial cities are expected.

IT's a recurring theme. Today, the BBC report on the French politician who is up in arms about France's entry for the eurovision song contest.

The problem this time? The song is in english.

In 1992, a french government minister, Jacques Toutbon, attempted to stem the tide of english words used in the French language by introducing a number of new laws.

The French invented the measure of weight they called the kilogram in 1795.

But scientists are scratching their heads today as the original 18th century weights fluctuate mysteriously.

SOMEONE has finally totted it up. We always suspected it but now, according to the Telegraph, it's official.

The French take 37 days holidays a year compared with the UK's 26 days.

But there's more.

Now add the two hour lunch every day. If in France we have 37 days holiday then that must mean we work 223 days of the year (52 weeks x 5 days a week - 37 days holiday = 223 days).

A RABBIT infestation in France is to the cause of the most devastating losses faced by cereal farmers in 30 years.

And under French Law, it's their neighbours that are to blame causing deep rifts amongst the residents of small agricultural communes, according to today's Times Online.

THE following was a letter sent from the foreign exchange company, International Foreign Exchange, to its customers to summarise recent measures taken to stem Sterling's demise against the Euro.

ACCORDING to René Pallincourt, president of FNAIM, 2008 should be a good year to buy property in France.

Mr Pallincourt said in an interview in Le Figaro, "In 2008, markets should not grow at a rate
higher than inflation".

He noted however that worldwide "consumer confidence deteriorated, a year-end marked by a downward revision of growth, a
decline in consumer spending and a slowdown in purchasing power, will
barely offset recent government measures (tax package, tax credits etc)."