2010 growth is now seen betwen 0.4% and +0.9%, up from -1.0% and +0.4% when last forecast in June.

Financial markets remain strain and recovery will be uneven, he says.

EUR/USD has dipped back below 1.4300, now at 1.4295. I would pin the weakness on the decision to lend unlimited funds to the banking sector at 1% for a year as the catalyst. A more confident ECB would have imposed a spread. This indicates the banks are still in deep trouble.