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This was/ yesterday after stocks look like they were ganna rally at the beginning because of those barginning in hunting... at the begining and then those sub-prime mortgage worries kicked in once again, we seem to be /in a little bit of perfect storm here a downward spiral, don’t we.

We do. I mean this market is looking at a little oversold at the moment, so you know hopefully we will see some stabilities set in, but there is an issue here that is troubling the markets that really relates to the... you know the signs of the white house, these banks might have to undertake, and / the numbers are growing daily you know and I think the concern in the market places is that it’s a very very large looks like they could be. But that would diminish the capacity the banks to lend, and if that happens it won’t be able to finance the economic growth, and that’s the case companies won’t make the money that they have been making, and the stock market will weaken, and I think that to some extent the stock market is really eh beginning to discount.

And there are a number of other factors playing into this week, we got the high price of oil at the moment very low dispite of easing oil. Yesterday that didn’t come in wall street we got extremely weak dollars as well play into this thing.

Well, the oil prices is a bother, you know but it wasn't a bother which we’ve thought 50 dollars and 60 dollars, I mean the pain threshold must be somewhere. Now what we thought were fairly close. The dollar however... the weak dollar I think is a good thing, because the weak dollar enhances the competitor's position of us companies in the global markets place. After all through our large areas / the global economy is still quite strong like Asia. And here in Europe, it’s not as if where the background here is all that weak. Things are slowing but there still is a good deal of growth here, so the weakness of the dollar enhances the competitor's position of the US economy and US companies, and so that in a sense is one of the plus factors at the moment.

In the research that the weak dollar is hurting particularly exporters here in Europe, I mean how long before international trade if you like begin to slow down because of the weak dollar.

Well I think that the key things really is/certainly that over here, it’s having the optimistic impact that should be having in the US, but the important thing is that the American economy is still a big economy, and if it does slow or if we do enter a recession. Otherwhile, I am not sure that is yet on the cards ok, ah, then a washback clearly / will be felt here in Europe and UK, but what that means is the central bank will then have to respond to all of that. Now they have to cut interest rates.I mean they just can’t stand by and watch the economy moving into recession. We will see interest rates cut. And that will be good.

You know Ben Bernaky's going in a tricky position at the moment, I mean he knows he’s got a ...perhaps one more re-cut up his leave that he can play, but by his early admission, inflation pressures haven't gone away,have they. The underlying US economy is still pretty sound at the moment.

It is, there is a curtain sturdiness there, and I think that is a balancing act, but I think the other point is that if the bank really do // have that sort of problems that the market senses they have, then what the central bank will want to revert is kind of situation we saw in Japan where you know the banks went from difficulty into more difficulty they had lots of bad debts, they couldn’t finance economic activity and the central bank responded very slowly to all of this. And here we are ,17 years later still on the second bear market in Japan and the economy is not performing all that well / so I think what the federal reserve will want to do is he will act fairly assertively, and I think he’s already given an indication of how respond after all it has cut interest rates by 75 basis points so far, and I think what he would say to us is that, look we may have a short-term problem here with inflation, but the longer-term problem is potentially disinflationry or even ultimately deflationary and therefore we are gonna have respond to it and deal with that more than a short-term prospect of inflation which in fact could be utimately disinflationry too, high inflations squeezes the real disposable incomes, which in turn reduce spending powers. So you know it’s all pointing in the same direction, it's all pointing as if they... the way the central bank have to respond to this is by cutting interest rates and now I think that will eventually limit the down side to the stock markets