Are we poised is to see the third leg of the credit crunch crisis?
After the initial credit crunch hit the US and began to spread around the world there was a period when many observers believed concerns had been overdone and the markets and economies around the world would return to "normal". However, we then saw a second leg which impacted upon the worldwide financial sector, stock markets, government budgets and other vital elements of "everyday life". However, there are growing concerns that we could be poised to see the third leg of the credit crunch hit the worldwide economy!
Earlier this week we saw concerns appear regarding the Greek economy, which has struggled due to the downturn, with a massive increase in the Greek government budget deficit. There is also the ongoing situation in Dubai which, despite government claims that it is "under control", still has some way to go before it is totally resolved. As a consequence, there is growing fear in the money markets that more governments around the world will struggle to raise funds needed to see them through the short to medium term, a time when the worldwide economy and local economies should start to turn the corner.
The danger is that if economies are starved of potential financial investment in the short term we could see a sharp U-turn and a further lurch downwards. This could literally push the worldwide economy into a depression, never mind a recession!
Is JJB sports back in trouble?
Despite the fact that JJB Sports had seemingly avoided bankruptcy earlier this year and looked set to continue to trade as normal, half-year figures announced today show a £42.9 million loss and concerns about the group's long-term future. It was only a few months ago that the implementation of a restructuring and refinancing plan appeared to have rescued the group from disaster, although the gro...Read More
Negative equity threat to 1.2 million in UK
The Bank of England has revealed that 1.2 million home owners in the UK will be at serious risk of moving into negative equity before the ongoing credit crunch is at an end. While this figure is even higher than the most pessimistic of reports over the last few months it could get even worse before we start to see any improvement.
Those who are unlucky enough to fall into negative...
Takeover panel reviews Cadbury comments
As we mentioned yesterday, the chief executive of Cadbury, Todd Stitzer, has become embroiled in something of a slanging match with Merrill Lynch over reported comments made at a recent conference. Merrill Lynch seemed to suggest in a recent research note that the chief executive had indicated that a takeout price of 15 times profit, before tax and depreciation, would be a fair offer for the compa...Read More
Budget Headlines : UK National debt will not fall until 2016
UK National debt will not fall until 2016...Read More
Government confirms talks with Jaguar Land Rover
Despite Jaguar Land Rover not being one of the more prominent car manufacturers to appeal to the UK government for assistance, rumours are circulating today that the company is in talks with Lord Mandelson about a potential bailout package funded by the taxpayer. If these rumours are correct it would seem highly likely that the hand of assistance will be extended to many more car manufacturers in...Read More