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!
Inflation knocked off the news headlines by market turmoil
As stock markets in the Far East fell by around 5% overnight it seemed obvious that the headline inflation figure in the UK would not receive much attention today. The government will be thanking their lucky stars that this is the case because the rate of inflation in the UK has reached a new 16 year high of 4.7% and it is expected to go higher before succumbing to the crumbling oil price.
Is Gordon Brown starting to panic about the recession?
Tonight there are new claims that Gordon Brown is starting to show signs of panic after the announcement that the UK is officially in recession. The opposition parties appear to have sensed a draining of confidence from the UK Treasury and the Prime Minister after literally billions and billions of pounds appear to have been wasted on a number of rescue packages. The situation with the UK economy...Read More
Is Tesco using its loyalty card scheme to prop up trading?
Jonathan Pritchard, a retail analyst at Oriel Securities, has today opened up a potentially controversial debate regarding Tesco and current trading. Aside from the fact that recent industry sales figures placed Tesco towards the bottom of the pack over the last few weeks, the company has today announced a doubling of loyalty points for members of the company's loyalty scheme which will cost the g...Read More
HSBC announces £12.5 billion rights issue
One of the strongest banking companies in the world, HSBC, has today been forced to go cap in hand to investors for an additional £12.5 billion after announcing a rights issue. The heavily discounted rights issue is vital to enable the other company to increase its Tier 1 capital ratio after taking a severe hit from its US operations. However, unlike Royal Bank of Scotland which had been criticis...Read More
Marc Bolland to leave Morrison's early
Marc Bolland, the chief executive of Morrison's, has been relieved of his duties at Morrison's having been forced to step down ahead of his move to UK retail giant Marks & Spencer. Despite the fact that he has been relieved of his duties with immediate effect he has yet to agree a release date from Morrison's. However, the fact he is paid £1.7 million a year will certainly be in the minds of Morr...Read More