The British economy received a bit of good news today after the latest job figures released by the office of national statistics showed that the number of people out of work fell by 51,000.
Unexpectedly the number of claims for job seeking allowance rose by 8,100 taking many observers by surprise as it was predicted it would see a fall of 3000. The news will be a welcome relive to the British government who has been barraged by a series of disappointing economic figures over the past few weeks.
“This time we’re seeing a very healthy increase in full-time jobs and that’s clearly very welcome,” Employment Minister Chris Grayling said.
But he added: “Any fall in unemployment is very welcome, but I remain cautious over the next few months, given the continuing economic challenges we face.”
Today saw the release of the Bank of England’s June meeting. The minutes revealed that four members of the UK Monetary Policy Committee voted to implement and increase further quantitative easing measures. The committee was split 5-4 in favour of not implementing further increases raising economists’ expectations that a new round of quantitative easing is inevitable for July.
Earlier the Euro was one cent away from reaching a one month high against the Dollar. The outcome of the G20 meeting boosted confidence in the wavering currency as world leaders pledge to do whatever it takes to safeguard and protect the Eurozone. The meeting was hailed as a success by world leaders who suggested a new proposal for aiding struggling nations. A proposed bailout of Spain and Italy was suggested and would see the use of the two European rescue funds the (ESM) and (EFSF) to buy up debts from the financial markets instead of going straight to the governments. The plan would cost €500billion.
The Euro remains steady as fears of contagion continue to weigh down the currency. The world is waiting to see what type of government will emerge from the Greek elections. Negotiations are underway between the victorious New Democracy party and a number of other parties. Antonis Samaras is expected to named prime minister and his government announced by the end of the day.
Despite the plans and ideas being thrown about over saving the euro situation US business magnate Donald Trump offered a realistic observation; “Europe is a total mess. I know so many people over there and they don’t know what’s happening. The whole euro thing will eventually be doomed. I can’t see Germany bailing out other countries because the German people are hard-working people… I see a lot of these countries going back to their own currencies and the world will continue.”
The Pound to Euro exchange rate is currently trading at 1.238
The Pound to US Dollar exchange rate is currently trading at 1.573
The Euro to Australian Dollar exchange rate is currently trading at 1.245
The Euro to US Dollar exchange rate is currently trading at 1.269
The Euro to Pound exchange rate is currently trading at 0.807
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