Brentwood Group, Japan – Sterling Plunges On Negative GDP.

Nov. 29, 2008 - PRLog -- Asian-based asset management firm, Brentwood Group, fear the UK’s economy may be in for a far deeper and more protracted recession than originally predicted because of the country’s reliance upon the financial sector for a significant contribution towards its GDP.

Comments by the Governor of the Bank of England, Mervyn King, in which he said the UK was most likely already in recession and the release of a disastrous set of GDP figures showing a 0.5% contraction saw the pound plunge mercilessly on foreign exchange markets.

Brentwood Group sources suggest that a deteriorating housing market, the most indebted consumers in the developed economies and an over-reliance upon the financial sector will see the UK’s recession become acutely painful.

One of the Brentwood sources cited the pound’s slump to below $1.60 as evidence of the market’s concern over the longer-term economic outlook for the UK and suggested the Bank of England may be forced to cut interest rates sharply to spur growth.

Brentwood Group continues to caution clients against attempting to call a bottom in the UK property market.