Ahead of the European open Chinese manufacturing numbers came in at a seven-month high. This was followed by encouraging data from Spain and the UK, before some very good US data. Markets have focused on these manufacturing figures rather than Moody’s downgrade of the eurozone bailout fund, which was brought on by the French debt write-down.
The French central bank governor’s statement that he thought London should no longer be the financial capital of Europe was met with much amusement. Very few have done more to encourage successful French businessmen to London than his own government's leader, Francois Hollande, and his tax policy.
In equity news the Royal Bank of Scotland has outlined a ten-year plan to re-privatise the company and disentangle them from government ownership. This plan would also involve the reintroduction of dividend payments by 2014, although with Q3 losses still at £1.38 billion, this is an ambitious timeframe. BP, drawing to the end of another "annus horribilis," have outlined their plan for growth following the poor handling of their exposure to Russia, while US shareholders will be hoping for a considerable return on the investment capital they received from the sale of TNK holdings.