Treasury secretary John Paulson spoke in front of the House Panel regarding TARP trying to bring calm to the markets. Stock markets remained slightly for the day.
The Euro remained relatively strong as ECB president Trichet says this is the worst financial crises for the industrialized nations since WW2 but said the Eurozone is working with other nations to get out of it, but no time frame was given. The Euro remained weak against US$ and slightly weaker against the sterling.
The main news coming out of the UK was the Inflation coming down to 4.2% – it was expected at 4.5%, but this was not a surprise. This could lead to rate cuts and deflation could be an issue. Retail Price Index came in at 4.2% – it was expected at 4.5% – this was weaker than initially expected but won't make to much difference to rate cuts.