Governor says interest rates are going up

• Well, not exactly, but that’s what he meant

• Isn’t it?

Good morning. Here’s a little test to get the grey matter working on a chilly Wednesday morning. Find the words “one and a half per cent” in the following sentence, extracted from Bank of England governor Mervyn King’s letter to the chancellor yesterday:

UK rate decision today

• No change to 0.5% Bank Rate expected

• But you never know…

Good morning. Twenty general practitioners in Surrey are testing a system that uses a call centre to handle appointment requests. Perhaps such an arrangement could allow the government to sidestep the controversial European court ruling that gives convicts the vote, rather than going head-to-head against Strasbourg and risking an open-ended litigation bill.  The prime minister could comply by giving prisoners the vote but requiring them to cast it through a call centre. “If you would like a list of all the candidates who support capital punishment press one; if you are only serving time for something trivial like aggravated assault press two; if you were fitted up or it was all a big mistake press three; if you are trying to make a doctor’s appointment press one-one-one; to return to the previous menu press nine.”

Sterling the winner on a 2-6-1 formation

• US dollar still out of favour

• Has the market forgiven sterling already?

Sterling receives boost against majors after survey released this morning

• Risk appetite remains in global markets to see equities rally

• Yen down against majors -stocks extend on gains made towards end 2010

• Aussie dollar takes hit on flood risk to commodities

• Oil price to return to record highs

A happy new year for equity markets

• But not for the Aussie dollar or the yen

• Sterling still making up its mind

Good morning and happy new year. The British media are often accused of focusing too much on London. That is not the case today. As VAT goes up from 17.5% to 20% they are all talking about the price of a pint of beer rising to £3. If they were as London-centric as the critics allege they would be at least five years out of date on that one. But the government proposes a new measure to make beer more affordable to the drinking classes; 400ml. At roughly two thirds of a pint, that would put the price of what the Australians call a “schooner” at about £2.50. (What do you mean £2? Dream on.)

Another long weekend looms….

• Sterling is back on its feet – for the moment

Good morning. A headline on Bloomberg this morning appears to illustrate one of the consequences of currency misalignments; “Brazil Raises Duties on China-made Baby Dolls as Real Gains Hurt Toymakers”. It would be a good illustration were it not that the real/renminbi exchange rate today at 3.94 is not materially adrift from its position at 3.92 at the beginning of the year (strengthening by an insignificant 0.5%). Perhaps the Barbie and Cindy manufacturers in Brazil should examine their products instead of blaming spurious external influences.

Seasonal illiquidity starts here

• Euro unmoved by Brussels summit

• Little stimulus promised by today’s data

Good morning. Another burst of cold weather has the media warning that blocked roads and airports bring with them a billion-pound a day cost to the economy. Insurance companies are doing their best to fight back, though. While Canadian insurers are considering a rebate for drivers who fit winter tyres, their British counterparts are leaning the other way. They are increasing, by up to 20%, the premium for drivers who fit winter tyres instead of sliding around on summer slicks. The AA says that some firms have even refused to insure cars running on winter tyres. A public inquiry into this ridiculous situation has had to be postponed because of the weather.

US employment report disappoints

• As does UK services PMI

• A quiet day in prospect

Good morning. The Ivory Coast has been first to put in a bid for the 2026 football world cup. Its two presidents say the country is a perfect location and have invited each of FIFA’s executive committee members to Monaco to see for themselves just how perfect it is. Insiders at several Swiss banks have already booked flights to Djibouti to make the necessary arrangements.

What will the ECB do about the PIGS?

• Investors look for a bond purchase programme

• First revision to Euroland Q3 GDP today

Good morning. There is more from Wikileaks again today but most of it seems to centre around the theory that Russia is run by crooks, not exactly what you would call newsworthy. Of greater interest are the stories inside the paper. For example, the Egyptian Red Sea resort that is changing its name to Shame El Shark and the distressing news that the Andrex puppy is to be laid off after a 38-year career, replaced by a computer-generated simulation. More predictable is the long queue of columnists who whinge every year about the country’s lack of preparedness for snowy conditions. How many of them bother to put winter tyres on their cars?

The end of the beginning for Ireland

• But no details of the deal yet

• NZ debt outlook downgraded to negative

Good morning. Philosopher and one-time footballer Eric Cantona has revealed his master plan to address miscellaneous gripes relating to the withdrawal of French government handouts. He wants people to draw money out of cash machines. If everyone were to do this, he says, the banks would collapse and the problem would be solved, presumably because there would be no jobs left and everyone would be able to retire immediately.