Growth to Reaccelerate for Remainder of 2010, Barclays Capital Says

With monetary policy expected to remain extremely easy and the global economic recovery intact, financial market conditions are favourable for investors, Barclays Capital today said in its latest flagship quarterly research publication, Global Outlook: Nothing More Than a Pause. As indicated by the title, Barclays Capital expects the recent mid-cycle slowdown to be followed by a pickup in growth.

“While we do not expect growth to reach the pace of the initial post-recession phase, easy monetary conditions are working across global financial markets, and it is simply a matter of time before that provides a lift to real activity,” said Larry Kantor, Head of Research at Barclays Capital. “Emerging markets should continue to outperform developed markets, and we see the massive underperformance of equities relative to credit nearing an end.”

Additional themes of Barclays Capital’s Global Outlook include:

• Underperformance of developed markets relative to emerging markets is likely to weigh on developed market currencies
• In Asia, China slowdown concerns have abated, and growth in rest of region remains strong
• In the US, economic growth should be modestly above-trend for remainder of year, though policy risks remain critical to market performance
• In Europe, improved economic data and sensible policy actions have reduced market risks

About Barclays Capital’s Global Outlook

The Global Outlook research report, published quarterly, provides an assessment of all major economies and outlines the likely implications for global financial markets, including commodities, credit, economics, emerging markets, equities, fixed income and foreign exchange.

About Barclays Capital Research

Barclays Capital is committed to bringing our clients a best-in-class, global research franchise. The firm has a team of approximately 800 professionals covering every major research discipline, asset class and region. In 2010, Barclays Capital ranked #1 among Greenwich Quality Leaders for US Fixed Income Research Quality, ranked #1 for Overall Trade Ideas, #1 for Sovereigns Research, and #1 for Supranational and Agencies Research in the Euromoney Fixed Income Research Poll, ranked #1 for Commodities Derivatives Research, #1 for Oil & Gas Products Research, and #1 for Metals Research in AsiaRisk’s Commodity Rankings, and was named Best Bank for High Grade Research, ABS Research, Derivatives Research, and Best Index Provider in the Credit Annual European Awards.

About Barclays Capital

Barclays Capital is the investment banking division of Barclays Bank PLC. With a distinctive business model, Barclays Capital provides large corporate, government and institutional clients with a full spectrum of solutions to their strategic advisory, financing and risk management needs. Barclays Capital has offices around the world, employs over 23,000 people and has the global reach, advisory services 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.