UBS also said they will raise $15 billion in capital to help weather the storm as the ongoing conditions in the financial markets have become challenging, investors are afraid the after math of a U.S credit meltdown will start spreading within other economies and might affect the outlook for those economies especially since they think global growth would deteriorate on the back of a recession in the United States…

Germany released the retail sales for February, falling on the month by 1.6 percent from the previous rise of 0.9% while median estimates were pointing for a 0.5% rise, while compared with a year earlier retail sales dropped 0.3% inline with median forecasts and down from the previous 0.3% rise.

Yet employment rose in Germany, as the unemployment rate fell to 7.9% in March from the previous 8.0% rise and beating median forecasts of 7.9% rise, marking the lowest reading since 1992, while the ILO unemployment rate declined to 7.4% in February from 7.6% also better than forecasts.

PMI came out today from Germany better than median estimates indicating that the 15-nation's largest economy can cope with the rising Euro, the PMI rose in Germany to 55.1 in March from the previous and expected 54.9, while for the whole Euro Zone area PMI was unchanged in March at 52.0. as for the unemployment rate it came unchanged in February from the 15-nation economy at 7.1% inline with medina forecasts.

The U.K also released their PMI for March, the reading came unchanged from February's 51.3, beating economists' expectations the index would drop to 51.0, the BOE were concerned over prospects of sharp fall in growth though inflation remains elevated, investors are betting the BOE will cut rates by further 25 basis points, as they struggle to avoid another U.S fallout situation.

The U.S will release their ISM manufacturing today, expectations are to see continuing contraction in the falling sectors even as the U.S Dollar continued to fall against major currencies, yesterday the PMI came out to show ongoing contraction in the sectors that counts for almost 10% of the U.S economy.

Mr. Trichet won't be relived after hearing the UBS news, especially as he struggle to tame rising inflation which rose to 3.5 percent in March on rising food and energy prices, and should make the ECB job a lot more difficult especially with prospects of deteriorating global growth!