From the Economist….

Britain’s economy contracted by 0.5% (an annualised rate of 2%) in the third quarter, according to a preliminary estimate. The drop, far worse than forecasters had expected, was the first quarterly decline in output since 1992 and the biggest since 1990. The pound immediately sank below $1.56, an alarming fall. A week earlier it was trading above $1.73 and could be exchanged for $2 as recently as July.

The economic news from the euro area was scarcely better. An index of manufacturing industry based on a survey of purchasing managers slumped from 45.0 to 41.3, its lowest level since it began in 1997 (a reading below 50 is consistent with falling activity). The corresponding index for services fell to 46.9.