1.   The German half point rate cut yesterday has set off speculation on a rate cut in the UK despite Chancellor Kenneth Clarke dampening speculation.

2.   Hopes that a cut in German rates would somehow create an opportunity for UK rates to fall were shortlived yesterday.

3.   Amid the optimism, however, some analysts questioned whether the German rate tonic would do all that much for growth unless bond yields fall.

4.   And Bundesbank council member Franz-Christoph Zeitler said today there is no reason to raise or cut German rates.

5.   Any increase in the fed funds rate is likely to help the dollar, especially when both Japanese and German rates are at historic lows.

6.   Any increase in German rates was expected to prompt investors to abandon Canadian bonds for higher returns in Europe.

7.   As the likelihood of a German rate cut fades, so does the prospect of a cut in French rates.

8.   As the prospects for German rate cuts improve, the odds that the Fed will cut U.S. rates are lengthening, market participants said.

9.   At the same time, it needs the German economy to grow too slowly for German rates to rise and pull French rates up with them.

10.   Bank shares rose as German overnight rates were unchanged amid limited demand by commercial banks and an adequate flow of funds.