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!
Speculation grows on further interest rates cut
Speculation has been mounting that further interest rate cuts will be announced by the Bank of England, after minutes from its previous meeting on cuts were released.They reveal that the Bank's nine-member committee considered making a larger cut than the 1.5 per cent reduction which took the rate to a 50-year low of 3 per cent.Research by the Bank indicated that a rate of 2.5 per cent or lower wo...Read More
Tesco set to attack UK broadband market
Tesco's has announced a partnership with Cable and Wireless to attack the UK broadband market with the likes of BT, Virgin Media and Carphone Warehouse now on alert. The five-year deal with Cable & Wireless will allow Tesco to offer broadband and home phone services with the aim of building a £2 billion annual turnover and profits of £200 million in the medium term. This equates to about one ten...Read More
How is UK football holding up in the slowdown?
There can be few industries in the world which seem to have held their value and buying power like the UK football sector has over the last few months. Despite being on the brink of the worst recession for decades we are seeing teams spending upwards of £30 million on one player and fans paying ever increasing prices at the gate. How can this be?
When you look at football in the...
Is it sensible to extend the quantitative easing program?
Today we are waking up to the news that the Bank of England is seriously considering extending the quantitative easing program and pumping more money into the UK economy. This comes at a time when many observers, investors and taxpayers had begun to become more positive on the UK economy, but this weekend's revelations will be a setback for many. So is it sensible to increase the quantitative easi...Read More
Lloyds bank is considering further redundancies
Lloyds bank has today confirmed that the group is considering the future of up to 300 agency counters around the UK. This is the next step in a significant cost reduction programme introduced by new chief executive Eric Daniels who believes he can slash £1.5 billion from the cost base of the company. While the group has reiterated that the 3000 Lloyds TSB, Halifax and Bank of Scotland branches in...Read More