Month: December 2011

Written by Sara Nunnally, Editor, Inside Investing Daily, insideinvestingdaily.com

Nobody is telling the truth these days. From Wall Street to Washington to the clowns in Europe, the truth is nowhere to be found. That means… it’s time for gold.

Why don’t people tell the truth anymore? It seems like every day, we’re hearing some BS story of how the blame should be put on someone else’s shoulders.

We see this in politics all the time, but we’ve come to expect lies and manipulation from Washington.

What are getting more prolific are the lies coming from Wall Street.

Of course, we know these characters weren’t choirboys to begin with, but we’ve turned a blind eye to the lies that the Corporate Elite tell. They’re the moneymakers, right? The job creators? Well, now, some of them are lying to customers’ faces.

For example:

“Their plight weighs on my mind every day — every hour. I simply do not know where the money is, or why the accounts have not been reconciled to date.”

This quote is from Jon Corzine, former CEO of MF Global (and former U.S. senator), in his first statement since MF Global went bankrupt on Oct. 31 and lost hundreds of millions of dollars of customers’ money.

It is ridiculous… an absolute sham.

And to say these insincere words is a huge injustice to the people he swindled.

Swindled isn’t too harsh a word, either. The Chicago Mercantile Exchange is accusing Corzine and MF Global of using customer funds for company trades. And we all know how poorly those trades went.

If Corzine means he doesn’t know what the folks on the other side of his company’s trades did with the profits they made from MF Global’s bad trades, then he’s telling the truth…

He doesn’t know where that money is.

But come on, folks… This former senator knows what to say, how to act. It’s just that our ears have become highly sensitized to baloney.

“Every hour”… really? It doesn’t make anyone feel good to be patronized — especially after you’ve taken them to the cleaners.

So Corzine can go on telling congressional committees that he’s not an accountant, and that he was “stunned” to find out that customers’ money was missing. We got more important things to do… like make smart investment decisions.

All the more so when someone like Corzine can be at the helm of a brokerage.

One of the most important things we’ve been trying to hammer home is to have a solid investment plan, with specific entry and exit strategies to help you stay focused. It’s also important to choose your help wisely.

For Jared A. Levy, editor of Option Strategies Weekly, this philosophy has helped him take down winner after winner for his readers:

OSW continues to find winners over and over again in this extremely difficult market. I say this not to gloat, but to perhaps remind you just how confusing this climate is and how important it is to have guidance…

Over the past several weeks, [none of the “experts”] are comfortable picking a direction for the stock market or the outcome of Europe’s complex problems.

This is encouraging in my eyes because it seems everyone wants to stay in cash, and yet we continue to reap serious rewards. Last week’s winners, which included the FXE puts with a 45% gain, both CMG positions at about 30% and our CNQR puts at a small gain, really made the Thanksgiving holiday all the better.

That’s particularly true of the situation in Europe. Its future is getting increasingly unstable and folks, including Jared, are expecting some kind of collapse.

And by the way, the news recently that France is willing to sign a new EU treaty with only 17 members instead of 27 shouldn’t be considered a victory. There will be a lot of pain with that move, and who knows if it would actually work to stabilize the region and the currency.

It doesn’t help that the U.S. is practically giving away dollars to help “shore up” EU loans.

This is making all kinds of havoc for dollar-denominated assets and currency trading. It’s like a race to the bottom for both the dollar and the euro.

That’s why we’ve seen gold trade like this:

View larger chart

Up and down over the past four months. But we’re starting to see these wild swings get tighter and tighter, like a spring.

This is a symmetrical triangle pattern. I’ve marked the lines in purple, and it can break out of these lines both to the upside and to the downside. That’s the tricky part… And that’s why this currency manipulation can be such a thorn in the side of traders and investors.

Gold is approaching a breakout point. It can’t coil much longer — it’s already deep in the triangle. Gold is going to break out.

With all the uncertainty around the EU and our ongoing economic problems here in the U.S., our bet is gold will move higher from here. My concern, though, is how quickly and smoothly that move will be.

The problem with triangle patterns is they set up many points of resistance. All those times gold touched that top trend line and fell back? Those points could make it harder for gold to move higher.

The currency manipulation will continue, and that will also make the road a little rough. Traders should choose their strategies wisely.

Option Strategies Weekly members have Jared to guide them, and I recommend you check out his service that just issued a trade on gold.

In choppy times, the strategy and the guidance are what help you lower risk and increase your potential for gains.

P.S. On Dec. 20, 2011, we’ll be making a special announcement to readers. To learn all the details on what it involves and how it can save you as much as $133,000, put your name on our list of advanced registered recipients of the announcement. Go right here. We’ll send you details.

Dec. 9 (Bloomberg) — Bloomberg’s Elliott Gotkine reports from Berlin on opinions among voters and companies on Germany’s future as a euro-zone member. (Source: Bloomberg)

London Gold Market Report
from Adrian Ash
BullionVault
Fri 9 Dec., 10:05 EST

WHOLESALE MARKET gold prices fell back to this week’s low of $1705 per ounce Friday lunchtime in London, as Asian equities closed sharply lower but Eurozone and US equities rallied following news of the “fiscal discipline” being agreed by political leaders meeting in Brussels.

All 17 heads of state in the currency union have agreed to being bound by European Commission approval of their national budgets, with “automatic sanctions” hitting any member whose annual budget deficit exceeds 3% of GDP.

That same level was set by the pre-Euro Growth & Stability Pact in 1997, but has since breached by all but two members – Luxembourg and Finland.

A further €200 billion is being added to the Eurozone’s Stability Fund rescue package for weaker states, with the start date brought forward to January 2012.

A further 6 or perhaps 9 non-Euro states will also join the new fiscal agreement, according to various press reports, but British prime minister David Cameron quit the talks last night after making what French president Nicholas Sarkozy called “unacceptable demands” to stymie treaty change and block a Europe-wide tax on financial transactions.

Gold prices measured in the single currency held flat around €41,200 per kilo – down some 1.7% for the week – as the Euro ticked lower vs. the Dollar.

US investors saw the gold price open New York trade 2.1% lower from last Friday’s finish of $1745 per ounce.

The price of silver bullion crept higher towards $32 per ounce, some 1.9% down for the week.

“It’s going to be the basis for a good fiscal compact and more discipline in economic policy in the Euro-area members,” said Mario Draghi – president of the European Central Bank since October – of the overnight negotiations in Brussels.

Draghi yesterday cut Eurozone interest rates but repeated that the ECB cannot provide direct financial aid to member states under the terms of its treaty.

Quoting anonymous central-bank sources, the Reuters news-wire says the ECB will continue cap its government bond-buying – now totaling €270 billion – at €20bn per week. But last week’s move to provide unlimited funds to commercial banks “means that each state can turn to its banks, which will have liquidity at their disposal,” said France’s Sarkozy today.

Ireland’s minister for Europe Lucinda Creighton says she “and many other member states” expect the ECB to become more “pro-active…in the weeks ahead,” according to Reuters.

Greek, Italian and Portuguese government bonds meantime slipped in price Friday, pushing interest rates higher despite Germany’s Angela Merkel ceding her call for private-sector bondholders to “share the cost” of aiding over-indebted Euro states by suffering a write-down on their value.

“To put it bluntly, our first approach to [private-sector involvement], which had a very negative effect on debt markets, is now officially over,” said the European Union’s president Herman Van Rompuy this morning.

The Moody’s rating agency today cut the credit status of France’s biggest banks, saying that “Liquidity and funding conditions have deteriorated significantly.”

France’s own national credit rating is at risk, the Standard & Poor’s agency said this week, because of the weakness in its banking sector.

“Gold prices are still holding fairly well supported,” reckons VTB Capital’s Andrey Kryuchenkov in  note, “and any negative reaction to the summit today would only see limited losses in gold as opposed to other…more volatile precious metals, also suffering from growth concerns.

“On the downside [however] a break below $1700 would see losses to our key support at $1680 and the longer term January uptrend.”

Beijing is meantime planning to launch an aggressive investment fund to run $300 billion of China’s $3 trillion foreign exchange reserves, reports Reuters.

Part of the State Administration of Foreign Exchange (SAFE) – which acted to buy gold for China’s national hoard according to its last reserves update of 1054 tonnes in 2009 – an un-named official says the fund will target US and European assets.

Now the world’s second-largest private gold consumer, China saw consumer price inflation and industrial output both slip in October, under-shooting analyst forecasts at 4.2% and 12.4% respectively.

“Inflation is not a policy constraint [for the People’s Bank of China] anymore,” believes Tao Wang, an economist at UBS in Hong Kong.

Future PBoC policy “is more a function of the economy slowing and foreign exchange inflows drying up,” says Wang.

Adrian Ash
BullionVault

Gold price chart, no delay   |   Buy gold online at live prices

Formerly City correspondent for The Daily Reckoning in London and head of editorial at the UK’s leading financial advisory for private investors, Adrian Ash is head of research at BullionVault – winner of the Queen’s Award for Enterprise Innovation, 2009 and now backed by the World Gold Council market-development and research body – where you can buy gold today vaulted in Zurich on $3 spreads and 0.8% dealing fees.

(c) BullionVault 2011

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

2012 IPO Watch: Rovio and Zynga

by Mike Kapsch, Investment U Research
Friday, December 9, 2011

Last year, people spent $67 billion buying video game hardware and games. According to market research firm Gartner, this market will likely earn another $7 billion in 2012.

But while traditional video games – like the ones you’d buy at a store or online – still dominate the gaming industry, a revolution of sorts is taking place…

Social and mobile gaming platforms are exploding on the scene faster than anyone ever expected.

In 2009 alone, social gaming revenue grew 116.4 percent to $1.4 billion. By 2015, social gaming will likely be a $5-billion market all on its own. Gartner’s Tuong Nguyen says mobile gaming will probably grow “even faster.”

For investors, this kind of growth shouldn’t be ignored. And two firms in particular are set to dominate these specialized sectors over the next 12 months… and beyond.

In fact, one is just a few weeks away from debuting on the New York Stock Exchange.

Zynga: The Biggest Gaming Company You’ve Likely Never Heard Of

While you’ll likely hear more about Facebook’s IPO in the mainstream news, Zynga is flying just under Wall Street’s radar.

And unlike other IPO’s this year such as Groupon, Pandora and Angie’s List… Zynga (and Rovio) is already slightly profitable.

In 2010, the company netted $90 million. Today, it’s arguably the most popular social game developer in the world.

You may even be familiar with such games as “FarmVille,” “Mafia Wars” and “Words with Friends.” These games have helped boost Zynga’s average monthly active users to 232 million people in 166 countries.

You can also check out Justin Dove’s article from July for even more details on the company.

Of course, as with anything, there are certainly risks to consider. For instance, Zynga relies heavily on Facebook to market its games. That’s changing though…

In fact, Zynga’s mobile business has seen a 10-fold increase in the number of daily active users from November 2010 to October 2011. In October, Zynga averaged 11.1 million daily active users on mobile devices.

Next Monday, the company will begin mass-marketing to raise money for its IPO. And it is expected to go public before the end of this year.

Yet this is just one of two IPOs to consider…

Rovio Entertainment: Getting “Angry,” Getting Paid

Finnish firm, Rovio Entertainment, was first founded in 2003. It was originally a mobile game development studio. Then the company released a game called “Angry Birds” via Facebook in 2009. And now it’s one of the most successful franchises in the world.

There’s no doubt “Angry Birds” is enjoying continued worldwide success. But, like Zynga, the franchise is looking ahead. It’s rapidly expanding in broadcast media, merchandising, publishing and services.

The biggest risk Rovio faces right now is it looks like it may be a one-hit wonder. But the same thing could’ve been said about Disney. It only started with Mickey Mouse. And now Disney is a $63 billion global entertainment powerhouse.

So if you’re willing to take a risk, look for Rovio to IPO around October of 2012.

Going Beyond Social Media

While both Zynga and Rovio found their original success on Facebook, they’re looking beyond social media. Today, most cellphones are like a portable entertainment center. And games are playing more and more of a key role. Both companies are rapidly entering this arena.

Bottom line: Rovio and Zynga already have proven business models. Their products are popular and they’re businesses are rapidly expanding. Investors shouldn’t lump them in the same category as more speculative tech or social media IPOs, such as Pandora (NYSE: P) and Groupon (Nasdaq: GRPN).

Good Investing,

Michael Kapsch

Article by Investment U

Investing in Solar Energy Technology

by David Fessler, Investment U Senior Analyst
Friday, December 9, 2011: Issue #1661

[Editor’s Note: We originally published David Fessler’s assessment on the viability of solar power back on October 28. We felt this is an especially relevant topic today on the news this week that Warren Buffett-owned MidAmerican Energy bought a 550-megawatt solar farm from First Solar (Nasdaq: FSLR).

According to Greg Abel, chief executive of MidAmerican Energy, “This project also demonstrates that solar energy is a commercially viable technology without the support of governmental loan guarantees and reflects the type of solar and other renewable generation that MidAmerican will continue to seek to add to its unregulated portfolio.”]

Wednesday was a beautiful, warm, sunny day here in Northeastern Pennsylvania. We haven’t had a frost yet, and the farmer who leases my fields just mowed his alfalfa… for the fifth time this year. He’s never been able to get a fifth cut in the 25 years I’ve lived here.

My electrician was taking advantage of the good weather. He’s modifying my electrical service to accommodate the photovoltaic (PV) solar panel array. It should be installed in a week or two.

The system I’m putting in will cover about half of my electricity usage. I’m hoping through conservation and the eventual use of LED lighting that it’ll cover even more. Once it’s installed, I’ll monitor the power I’m producing in real time.

SunPower Corporation (Nasdaq: SPWRA) made my solar panels. SunPower is a vertically integrated solar company. It makes and installs panels and operates systems. These range from small residential systems like mine to large, utility-scale projects.

SunPower produces the finest polycrystalline PV panels available on the market. They come with a 25-year warranty against defects in materials and workmanship. It all sounds great… until you dig a little deeper.

The Problem With Solar Technology

The sun is a tremendous source of energy. Enough solar energy falls on a 100-square-foot area to completely power the average home. Photovoltaic solar is great technology.

Once installed, the higher-quality panels are virtually maintenance-free. There’s no pollution produced, and during the day (even when the sun isn’t shining), electricity is being produced. But even the best solar panels are only able to capture and convert 20 percent of that into electricity.

Still, you can see the potential of solar technology. The problem with it right now is that without government subsidies, whether they be grants (many states, including mine), tax credits (federal government) – or feed-in tariffs (Germany) – solar still isn’t cost-effective.

It’s cheaper than it’s ever been, but still not cheap enough. Take my SunPower system, for instance. It’s a 10.4-kilowatt (KW) system. My all-in cost is about $3.00 per watt, after government subsidies, which cover about half the cost. The system will pay for itself in about 12 years. Without the subsidies, it would take twice that long.

On the plus side, solar is much cheaper than nuclear (which can cost more than $10 per watt, according to a study performed by Mark Cooper for the University of Vermont Law School.) There’s no residual waste hanging around for 20,000 years, either. But it’s still more expensive than just about any other form of power generation.

So why am I bothering with solar in the first place? Part of it is my engineering curiosity (I was an Electrical Engineer in a previous life), and part is my fascination and curiosity with the technology.

Besides, I like being a technology early-adopter… it gives me the first-hand knowledge I can use in recommendations to my subscriber base. I don’t just “talk-the-talk,” I like to “walk-the-walk,” as the old saying goes.

So Does the Solar Industry Have a Future?

So would I invest in any solar stocks right now? First Solar, Inc. (Nasdaq: FSLR) is a company to keep an eye on in the solar sector. Its thin-film technology is starting to gain traction, and it produces panels for under $1 per watt. Sales were up 85 percent last quarter, and if that trend continues, it could once again be a high flier.

Of course, many critics would argue, “Forget solar.” They point to the failure of privately held Solyndra, Inc. as a prime example of government meddling. The $528-million loan was an attempt by the Obama administration to try to pick a winner. Bad idea.

Critics also point to Germany’s end of its solar subsidy. But Germany ended its subsidy for one reason: It’s no longer needed. As a result of its big solar push, the country now gets 10 percent of its overall energy from solar.

Germany is a great success story, especially since it gets about as much solar radiation as Alaska. Did government subsidy play a role? Sure it did, in the beginning.

Before you all start pooh-poohing me on the idea of government subsidies, take a look at how much we subsidize the oil and gas industry. Last year it received over $4 billion in subsidies and tax breaks… Makes the Solyndra fiasco seem a little less poignant.

I’m not advocating the continued subsidizing of solar – or oil and gas – in the haphazard way it’s currently being done. Most, if not all, of the policies that were put in place for energy in general have short-term lifetimes, and are generally not well thought-out.

This myopic view of our long-term energy supply gives would-be investors and investment banks little incentive to spend or lend money in support of the advancement of any of the alternative forms of energy.

Sadly, many could hold promise as replacements for fossil fuels. It also denies consumers the lowered costs that would come with increased manufacturing efficiencies as costs are wrung out of the process.

I hope I live long enough to see some meaningful progress on a national energy policy with some teeth in it. Meanwhile, I’m hoping for sunny skies this winter.

Good investing,

David Fessler

Article by Investment U

Dec. 9 (Bloomberg) — Steve Brice, chief investment strategist at Standard Chartered Plc in Singapore, talks about the outlook for gold prices. Brice also discusses China’s economy, stocks and investment strategy. He speaks with John Dawson on Bloomberg Television’s “On the Move Asia.” (Brice spoke before China announced its consumer price index data for November. Source: Bloomberg)

Dec. 9 (Bloomberg) — John Tang, China strategist at UBS AG, talks about Hong Kong and mainland China stock markets and economies. He speaks in Hong Kong with John Dawson on Bloomberg Television’s “On the Move Asia.” (Source: Bloomberg)

Video courtesy of ForexCT – A leading Australian forex broker, liscensed by the Australian Securities & Investments Commission, offers the MetaTrader4 and PROfit Platform to retail traders. Other services include Segregated Accounts, Trading workshops, Tutorials, and Commodities trading.

Source: ForexYard

During yesterday’s press conference European Central Bank President Mario Draghi laid out 3-pillars for the “Fiscal Compact”. He also stressed the ECB will not use QE nor will it purchase unlimited amounts of European bonds. The EUR fell below the 1.33 level following the disappointing comments.

Economic News

USD – US Data Releases Go Unnoticed

All eyes are on Europe today with the European economic summit in Brussels. Yesterday US weekly unemployment claims were overshadowed by the ECB press conference. The data showed 381k new jobless claims were filed on expectations of 397k. Inventories for the month of November rose 1.6% on consensus forecasts of a 0.4%. This hints at reduced business spending in Q4 and potentially lower year end US GDP. The data was largely ignored in favor of events in Europe and this will likely be the case today as we will get US trade balance data and consumer sentiment.

The EUR/USD has resistance at 1.3440 from the 20-day moving average followed by 1.3550 off of last week’s high. Support comes in at the November low of 1.3210 followed by the October low of 1.3145.

EUR – ECB Cuts Rates but Disappoints Investors

The ECB lowered its key refinancing rate by 25 bp and introduced long term refinancing operations for banks to increase liquidity. During his press conference European Central Bank President Mario Draghi laid out 3-pillars for the “Fiscal Compact”. These three pillars consist of growth, rules on debt levels, and a stabilization mechanism. What Draghi didn’t announce was the ECB’s intention to cap sovereign bond yields, nor will the central bank be the last lender of last resort. Draghi stressed the final decisions are in the leaders’ hands. Investors were disappointed as well when Draghi said the ECB is not ready for quantitative easing.

Draghi has placed the ball back in the court of the European politicians who are meeting today in Brussels. Expectations are high for additional steps to integrate Europe and fund the debts of the fiscally strapped nations. However, given the gaps between Germany and other countries involved and yesterday’s disappointing ECB meeting market sentiment has been dampened.

The price action for the EUR/JPY shows the pair failed to overcome its 55-day moving average at 104.40 and is moving lower towards the 102.50 support from November 25th. A break here would open the door to the October low of 100.75.

GBP – BoE Leaves Rates, Bond Buying Unchanged

As expected the BoE left both the interest rate and its bond buying program unchanged. This means the market will not find out details of the past Monetary Policy Committee meeting until December 21st. In October the BoE unexpectedly increased the level of bond purchases to GBP 275 bn from 200 bn. Governor Mervyn King has already signaled the central bank’s willingness for additional bond buying as both the BoE and the government expect GDP fall. The most recent report from the Office of Budget Responsibility predicts GDP will be 0.7% in 2012.With the euro zone struggling to ward off both a debt crisis and a financial crisis this does not bode well for the UK which has the EU as its largest trading partner. As such sterling could come under additional selling pressure.

The GBP/USD failed at the 1.5780 resistance level but is still within its consolidation pattern from the past week and a half. A break of support from the December 6th low of 1.5560 would expose the November 25th low of 1.5420.

Silver – Silver Falls on European Woes

The price of spot silver fell in-line with the EUR yesterday as European Central Bank President Mario Draghi signaled the ECB would not come to the rescue of the indebted European nations. Higher yielding assets such as equities and the AUD all lost ground during Draghi’s speech which weighed on market sentiment. In response traders moved into the typical safe haven assets such as US Treasury bonds and the USD. However, there may be a silver lining to Draghi’s comments as the reduced ECB interest rate and increased liquidity measures may make access to cheap funding sources available for investments in metals such as gold and silver.

Spot silver has been trading in a triangle consolidation pattern from the November highs and lows. The commodity has resistance at the top of the pattern at $33.15 and at the bottom of the consolidation at $31.50. Forex traders should note that the chart pattern provides a measured move for $1.75 which could come in either direction.

Technical News

EUR/USD

The weekly chart shows the pair is trading in a symmetrical triangle pattern with the resistance line falling from the May high and support line rising from the yearly low. The first support from this chart pattern comes in this week at 1.3200. A break here will likely open the door to not only the October low of 1.3145 but also1.3050 from the 61.8% Fibonacci retracement of the bullish move spanning 2010 to 2011. The January low of 1.2875 could contain the near-term price action. To the upside the November 18th high of 1.3610 is the initial resistance followed by the mid-November consolidation at 1.3860 where the 100-day moving average also lies. The top of the triangle pattern would likely contain any move higher near 1.4230-1.2350.

GBP/USD

Last week cable found resistance at 1.5780, a level that has proven to be resistive in the past. Additional resistance is found at the October high of 1.6165. Monthly and weekly stochastics continue to move lower and as such the November low of 1.5435 is the initial support followed by the October low of 1.5270. The last bastion of support for the GBP/USD is found off of the rising trend line from the 2009 and 2010 lows which comes in at 1.0590.

USD/JPY

The USD/JPY is encroaching on its long term trend line off of the 2007 high and comes in at 78.70. A break above this level is needed to confirm the recent price appreciation. Both weekly and monthly stochastics are moving higher so traders may look for additional resistance at 79.50 from the post intervention high. The 200-day moving average is also lurking just below this price. Should the pair fail at the long-term trend line the congestion between 77.50-77.60 may prove to be supportive while the all-time low near 75.60 stands out as the last support.

USD/CHF

As weekly stochasttics have already turned lower the monthly stochastics are beginning to roll over. This is occurring after the pair looks to have failed to break above the 0.9330 resistance level. As such the pair has support at last week’s low of 0.9065 followed by the November low of 0.8760 and the October low of 0.8565. A break above the 0.9330 resistance could spur gains towards this year’s high of 0.9780.

The Wild Card

Silver

Spot silver has been trading in a triangle consolidation pattern from the November highs and lows. The commodity has resistance at the top of the pattern at $33.15 and at the bottom of the consolidation at $31.50. Forex traders should note that the chart pattern provides a measured move for $1.75 which could come in either direction.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

The Bank of England (BoE) maintained the Bank Rate at a record low stimulatory level of 0.50%, and continued with its Asset Purchase Program (Quantitative Easing) target of GBP 275 billion, after increasing it by 75 billion at its October meeting.  On its asset purchase program, the Bank said: “The Committee expects the announced programme to take another two months to complete. The scale of the programme will be kept under review.”

The Bank also announced the introduction of the Extended Collateral Term Repo (ECTR) Facility.  The Bank said: “This Facility is designed to mitigate risks to financial stability arising from a market-wide shortage of short-term sterling liquidity” and added “there is currently no shortage of short-term sterling liquidity in the market.”

The Bank also held the official Bank Rate unchanged at 0.50% at its October meeting this year; the rate has remained on hold since March 2009, when the Bank reduced the interest rate by 50 basis points to 0.50%.  The United Kingdom reported annual consumer price inflation of 5.2% in September, 4.5% in August, and 4.4% in July, and still above the Bank’s inflation target of 2.00%.