Markets conflicting signals.

The always entertaining Guido Fawkes blog is this morning querying whether perhaps London is starting to see Capital Flight, something much to be feared with the present dishonest Government and lack of opposition. The pretext for such doubts are presumed the bizarre use of anti-terrorism legislation against Iceland. For more queries along these lines consider the questions raised by the blogs - Anglo-Saxon Chronicles, PJC Journal and The Devil's Kitchen. The same post on Guido's blog queries the fate of the Euro currency in light of Italy's difficulties, read it all from here. (Note also from the Comments to that post is an FT link exposing the fact that UK Audit Commission had 10 million in an Icelandic bank!!). On a slightly more hopeful note today's Libor rates continue to decline, read Bloomberg, here. Oil also continues to fall as Germany drops its growth forecast by a full percentage point.