The Web Tycoon’s blog

The Federal Reserve noted since the last report on October 21^st that the Economic conditions in the United States have improved. At the same time, the Fed featured in the Beige Book that the labor market is continuing weak, but there are some isolated improvements.

The Beige Book records the economic evolution of the 12 zones in the Federal Reserve, this institution, highlighted that in eight regions,they recorded improvements, and in the other four, the situation was remaining more or less steady this last month. The major issue for the Federal Reserve is the labor market.

Yesterday, the private Unemployment data from November was released. During the last month, the companies of the United States destroyed 169000 jobs, more than the expected by the analyst, but less than the month of October, when 195000 jobs where destroyed.

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The members of the ECB’s Observatori, a committee of experts, believe that its necessary to keep the interest rate at 1% and will say it in the meeting that will be hold tomorrow.

However, there isn’t consensus on the way the emergency measures taken because of the crisis should be lifted, the committee believes that the support given to the banks should be gradually retreated.

The recent Crisis of Dubai, Whose government asked for a moratorium to pay part of the public company , Dubai World, triggered the divergence of opinions. ”the panic generated by Dubai is the best test to reach a conclusion about the financial crisis, this case mirrors a trust crisis that is far of being solved”

Explains José Luis Martinez, strategist in Spain of Citi ”’the Central Banks must continue spreading liquidity and adecuated credit conditions to normalizethe markets”,

added. Nowadays banks can get money at a low interest rate an lend it very expensive.

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In the middle of the season where the forecasts for 2010 are released, Morgan Stanley is seeing something different than the optimistic approach of the majority. The company predicted that the European Stocks could close the 2010 with 5% lower levels than nowadays. Before of this, they could reach additional improvements by 10%.

In a different approach than Morgan Stanley The Investment firms are returning to rely on increases by until 10-15% in the European Stock this incoming Year.

Morgan Stanley calculates that in the next months the rally begun in March will continue, since then, the European Stock market is accumulating profits of 50%.

If the Forecasts of Morgan Stanley are correct, in middle-2010 The European MSCI index, will reach a 10% of additional revaluation and a maximum of 1200 points.

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