Profit warnings shake City
4 Dec 07

Tomorrow, the Bank of England will begin their two day meeting before they make their interest rate decision (where I expect a cut by 0.25% to 5.5%).

Yesterday, four profit warnings came through which are being blamed by the credit crisis, high food and oil inflation and new-property rent increases.

However, the BoE will also have to take into consideration that the Purchasing Managers' Index for Manufacturing showed stronger than expected activity in November.

Links:
Profit warning shock for Bank - City AM (4 Dec 07)

Oil could hit $150

According to Morgan Stanley, oil prices could hit $115 next year, but they see it averaging $85 over the next five years. $115 could be a possibility next year if global growth rises faster than expected and if US demand picks up.

Links:
Oil cout hit $150: Morgan Stanley - City AM (4 Dec 07)