SOURCE: Barclays Capital

March 20, 2008 11:29 ET

Policy Actions Have Mitigated Risks to US Financial System, Says Barclays Capital

NEW YORK, NY--(Marketwire - March 20, 2008) - Barclays Capital, the investment banking division of Barclays Bank PLC, today said in its latest quarterly "Global Outlook: Implications for Financial Markets," that the combination of recent Federal Reserve interest rate cuts and the administration's stimulus package will cause the US economy to strengthen in the second half of 2008.

"The markets are responding to the strong policy actions taken by the administration and the Federal Reserve, helping to restore confidence," said Larry Kantor, Head of Research at Barclays Capital.

Major Themes of Barclays Capital's Economic and Financial Market Outlook include:

--  US economic growth ground to a halt in the first quarter of 2008
--  Despite weakness in the US, the global economic expansion has stayed
    on track
--  Inflation becomes more of a concern as commodity prices surge
--  Weakness in the credit market has spread to counterparty risk
--  Credit concerns continue to plague the global economy
    

This research publication provides an economic assessment of all the major economies, and spells out the likely implications for global financial markets, including fixed income, foreign exchange, commodities, credit and emerging markets. This quarter's publication also explores how market participants can navigate the markets in a rapidly-changing economic and political landscape.

About Barclays Capital

Barclays Capital is the investment banking division of Barclays Bank PLC which has an AA long-term credit rating and a balance sheet of over £1.2 trillion (US$2.4 trillion*). With a distinctive business model, Barclays Capital provides large corporate, government and institutional clients with solutions to their financing and risk management needs. Barclays Capital has offices in 29 countries, employs over 16,200 people and has the global reach and distribution power to meet the needs of issuers and investors worldwide.

For further information about Barclays Capital, please visit our website www.barclayscapital.com.

*US$ figure was derived using the US$/£ exchange rate at 12.31.07 of US$2.00/£1

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