Friday, September 11, 2009

London’s Stock Exchange


London’s Stock Exchange (above) leading market index closed above the 5,000 barrier for the first time in 11 months yesterday, apparently due to ”continuing hope” that an economic recovery was under way. The FInancial Times Share Index (FTSE) of Britain’s top 100 companies hit over 5000 points – the first time this has happened since October last year. Traders were reportedly talking about a ”feelgood factor” and the positive mood was being helped by brokers upgrading a range of stocks, allegedly “bullish UK consumer confidence” and a giant oil discovery off Brazil by BG Group. The price of oil continued to rise, to above $72 a barrel, as signals from an OPEC meeting in Vienna indicated that demand was still growing strongly and a revival in the appetite for corporate takeovers also boosted the positive sentiment.

So once again we’ve got the “Green Shoots” brigade in the Stock Market talking the talk. Where the hell do they discern the “feelgood factor”, other than in the closed world of investors where some of them hope to make quick killings by talking up oil prices and takeovers ? Where are they seeing “bullish UK consumer confidence” when half the population is getting their arse kicked by the bank manager, worried about paying the mortgage, shit scared about keeping their job and fighting to keep their financial ship afloat ? How can they enthuse about “corporate takeovers” which in reality are the result of the crisis and will mean more “efficient” job losses ? And how can they look the millions out of work in the eye, with more set to join the dole queues, as these fat-cat spivs try and engender a false dawn to justify the fat bonuses they’re doubtless lining up for themselves and their greedy banker friends in the City while the rest of us continue to pay the price ?