BofE governor joins positive economic outlook voices

Bank of England Governor Mervyn King added to positive voices on the economic outlook, saying financial markets improved markedly & listing several reasons a recovery is likely this year. He said while the path to full recovery could be protracted, "there are some signs that the British economy is beginning to stabilize." The likelihood of a recovery some time this year was supported by what he termed the "Honda effect" -- many firms are resuming production this year after reducing inventories, as Honda did last year at its plant in Swindon, cutting back production & meeting demand from stock. He said other positive factors were the low British pound, which would encourage a switch in spending to British goods, & the enormous policy stimulus that