Hamish McRae: No big shock on oil - Reasons to be cheerful, parts one,
two and three
http://news.independent.co.uk/business/comment/story.jsp?story=552971
19 August 2004
The mood of the markets has darkened and the prime reason is the price
of oil.
Higher energy prices are inhibiting US growth and threaten the
eurozone recovery. On Tuesday, the Bundesbank warned that the
continued rise in oil prices and its implications for expectations
"would lead to serious risks to the current economic scenario". In
Japan, totally dependent on imported oil, there are serious doubts
about the sustainability of the current recovery. Here in Britain, the
minutes of the Bank of England Monetary Policy Committee suggest that
the peak in rates may come earlier than previously expected, which may
be good news at one level but is symptomatic of weaker-than-expected
growth.
Hamish McRae
http://groups.google.com/groups?hl=en&lr=&ie=UTF-8&oe=UTF-8&selm=18510aff.0311300328.340896a%40posting.google.com
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