INFLATION

The US dollar continues to be the appropriate anchor for the Hong Kong dollar for the foreseeable future and no change is needed......

European Central Bank governing council member Erkki Liikanen said on Friday that vigilance was needed on inflation despite a sharp fall in oil prices.

U.S. shares looked set to open higher on Thursday, extending Wednesday's gains after relatively dovish comments from Federal Reserve policy makers, but worries about the extent of the U.S. slowdown may cap equity buying.

FTSE 100 opened flat on Thursday as further weakness in crude prices hit oil heavyweights, but strong earnings boosted supermarket group Morrison .

The Thai baht staged its largest one-day fall in three years on Tuesday after Thai armed forces said they had taken control of Bangkok, which led to a broad-based decline in a number of Asian currencies.

U.S. housing starts fell more sharply than expected to the lowest rate in more than three years, while core producer prices dipped unexpectedly, according to government reports on Tuesday that confirmed a fast-cooling economy.

The yen rallied sharply from two-week lows against the euro on Tuesday after a European official said markets may need time to digest policymakers' message that a stronger yen versus the euro is desirable.

The strength of house price inflation has surprised the Bank of England, according to Monetary Policy Committee member Kate Barker.

Zimbabwe's citizens struggled to pay sharply higher prices for basic foodstuffs on Monday after official data showed inflation hit a new record in August. Prices surged further over the weekend after news on Friday that Zimbabwe's annual inflation, the highest in the world, rose to 1,204.6 percent last month.

Euro zone government bonds tumbled and the euro edged higher on Monday after hawkish comments from European Central Bank officials, while European stocks tracked Asian markets higher.

Namibia's annual inflation rate quickened to 5.4 percent in August from 5.1 percent in July, largely driven by rising food and transport costs, official data showed on Monday.

Asking prices for homes in England and Wales grew almost 10 percent on a year ago in the period from mid August to early September

European investors will focus on the Federal Reserve's interest rate decision next week and clues about the U.S. economy, while a smattering of company results will also roll on in Europe and the United States.

The world's leading industrial countries are enjoying strong growth but face the risk of rising inflationary expectations, tight energy markets and spreading protectionism

U.S. consumer prices and costs excluding food and energy both rose a modest 0.2 percent last month, the government said on Friday in a report that could reassure the Federal Reserve that inflation pressures are easing.

Strong sales of household goods and a penchant for home shopping helped retail sales rebound in August, suggesting last month's interest rate rise did not deter shoppers.

House prices rose at their fastest pace in over two years in the three months to August, a survey showed on Thursday

Wall Street stocks are set for a muted start to Wednesday trade as investors consolidate positions after the push to four-month highs, with crude oil trading at $64 a barrel helping ease inflation concerns.

Fund managers remain convinced the dollar is expensive and will fall against the Japanese yen

Strong rises in the cost of toys and games pushed the inflation rate up more than expected in August, reinforcing expectations that interest rates will rise again before the end of the year.

The FTSE 100 reversed early losses on Tuesday as fresh tensions in the Middle East saw investors return to beleaguered mining stocks on the prospect of more stable commodity prices.