U.K. Mortgage Approvals Down 47% in 2008, Growth Outlook Remains Bleak

Fundamental Headlines

• Barclays to Report Early to Calm Investors – Wall Street Journal
• Recession Batters Law Firms, Triggering Layoffs, Closings – Wall Street Journal
• ING cuts 7,000 jobs and taps state guarantee – Financial Times
• Philips Halts Buyback, Slashes 6,000 Jobs After Loss – Bloomberg
• Citigroup Says Sell BHP Calls on ‘Somber’ Earnings Outlook – Bloomberg

GBPUSD – Mortgage approvals in the U.K. rose to 22,051 from a revised reading of 17,339 in November however, the reading is still down 47% from a year earlier, and borrowing activity is likely to remain subdued throughout the first half of the year as credit conditions remain far from normal. Meanwhile, net mortgage lending dropped to 2.9B from 3.2B in previous month, and the data continues to highlight a dour outlook of the U.K housing and mortgage market. Falling home prices paired with instability in the credit market has certainly taken a toll on Europe’s second largest economy, and the outlook for improved growth remains bleak as the banking sector remains under pressure. Discuss the topic and your trade ideas in the GBP/USD Forum.