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!
Labour government draws the battle lines for next election
Lord Mandelson has today reiterated the fact that the UK government needs to hold the line and hold its nerve as we approach the next general election. Despite the fact that many people have already written off Gordon Brown in the next gen election, there is still much to play for and many mistakes to be made over the coming months. Lord Mandelson appears to have injected a siege mentality within...Read More
Postal strikes hit Royal Mail hard
Royal Mail is this evening reported to have lost a £25 million contract with online retailer Amazon, the company's second largest customer, as unions gear up for a winter of discontent. There has been significant friction between Royal Mail directors and the unions over the last few months which have culminated in the announcement of significant strike action over the Christmas period. Will there...Read More
John Lewis report sharp drop in early October sales
If you are looking for a reason for the sharp fall in the stock market today, look no further that the 7.6% decline in sales at John Lewis for the seven days to the 18th October. After battling gallantly to hold up the retail sector it seems that even the bell weather which is John Lewis has succumbed to the inevitable. Those who follow the markets will know that the groups issues weekly sales f...Read More
House of Commons committee to investigate takeover of Cadbury
A committee of MPs will this month make plans to investigate the controversial takeover of Cadbury by US giant Kraft foods. At the heart of the issue is the apparent indication that jobs would be safe in the short to medium term and then the immediate U-turn which saw the announcement of a planned closure of Cadbury's Bristol plant next year. This will result in the loss of 400 jobs although few f...Read More
How high will the UK budget deficit go?
As we continue to digest news of the £16 billion borrowed by the UK government in August alone to cover the budget shortfall, even though many people believe we are still on target for a £175 billion deficit for the tax year, there are some who believe this figure could be very conservative. So how high can the UK budget deficit go?
While there are differing opinions as to how hig...