The worst financial crisis since the Great Depression awaits the
winner of the U.S. presidential elections.

Democrat Barack Obama and Republican John McCain both have plans to
jump-start the economy which economists say is already in a recession that
could worsen by the time the new president takes office next February.

Barack Obama and rival John McCain have different ideas about how to tackle
the worst economic crisis facing the U.S. since the Great Depression of the
1930s.

Recession, a banking sector still very fragile and a changing economic
landscape all await the winner.

Strategist Peter Dixon of Commerzbank says whoever gets to the White House
faces a bumpy ride.

Peter Dixon, market strategist at Commerzbank, saying:
"My guess is that the new administration will embark upon an
expansionary fiscal policy in order to prop up the economy and I think
gradually over time we will see an administration that starts to pay a bit
more attention to the financial sector, to repair the financial sector, and to
put in place a set of institutional arrangements which prevents the kind of
bubbles that we've seen developing over the past few years."

The Euro Zone outlook appears slightly better than the U.S. prognosis but
it's still rocky.

The 15-nation currency area is technically in recession and economic growth
is predicted to slow to just 0.1 per cent next year.

In the wider European Union Baltic states like Latvia are already feeling
the downturn while Britain's economy is predicted to shrink by one per cent in
2009.

Both the European Central Bank and Bank and England are expected to slash
borrowing costs this week.

Peter Dixon, market strategist, Commerzbank, saying:
"At the moment I'm looking for 50 basis points off rates in both
cases. There's a lot more uncertainty I think about how far the Bank of
England will move. There are calls for potentially up to 100 basis points off
interest rates."

The anticipated cuts follow Australia's decision to slash three quarters of
a per cent off interest rates on Tuesday.

That move follows cuts in the U.S. , China and Japan last week.

Paul Chapman, Reuters