Devastating floods could cost insurance industry over £100 million
The devastating floods in Cumbria and South Scotland could cost the UK insurance industry in excess of £100 million although this figure could rise significantly because the flooding has yet to subside. We have literally seen homes washed away in the flood water, vehicles left battered on the road site and indeed we have seen the unfortunate sight of casualties and fatalities during the floods.
The UK government is now looking to put together an emergency package to ensure that those affected by the torrential rain in Cumbria and the South of Scotland are provided for as soon as possible. These particular rainfall numbers have been described as "biblical proportions" and events which are unlikely to be seen for the next thousand years. However, for those who have seen their livelihoods, their homes and their businesses washed down the river this will be little consolation in these most difficult of times.
No doubt we will also find out how many households in Cumbria and the South of Scotland were under insured which will no doubt result in the emergence of various battles for compensation. This only goes to show that home insurance is a vital element of any household budget and even though it may be tempting to reduce your insurance cover, or indeed suspend it in these difficult economic times, it is in many ways a false economy.
British Airways in last-ditch talks to avoid strike
British Airways and the Unite union are this weekend in last-ditch talks to try and avoid potentially 15 days of strike action starting from next Monday. Even though British Airways recently won a court ruling deeming that the recent strike ballot was illegal, the Unite union has overturned this ruling on appeal and strike action is set to begin next week. So what next? This is just the latest...Read More
Building society withdrawals hit record levels
With news that building society withdrawals hit a massive £2.2 billion in June there was initial concern that the so-called safe haven status afforded to the building society sector was in danger. However, the record £2.2 billion of withdrawals in June, compared to a £419 million inflow last June, appears to be the result of more and more people deciding to pay off their mortgages. So will this...Read More
Another day another economic forum
The World Economic Forum in Davos has received many column inches in the press but what exactly will we learn and what have we learnt so far?
The initial comments coming from the forum appear to be a repeat of those official statements made by the likes of Gordon Brown and other world leaders who are tackling serious economic unrest in their own country. Gordon Brown is also risking...
UK economy soldiers on
The British economy continued to expand in the first quarter of 2007, albeit at a static rate.According to preliminary official figures Britain plc grew 0.7 per cent in the first three months of this year, consistent with data from the tail end of 2006.The Office for National Statistics (ONS) says that today's figures mean the UK economy has grown by 2.8 per cent in the last 12 months.The growth o...Read More
Who is making money in these markets?
While there have been changes to the short selling rules around the world there are still some stocks which can be legally shorted and these seem to be where people are making most money at the moment. There are also some brave investors buying on bounces and taking short term profits but this is a very dangerous way to invest, especially with money which may not be available longer term.