Falls in Australian stockmarket overnight
The Australian stock market fell by over 3% overnight amid concerns about European debt markets, tightening credit and a general malaise across worldwide stock markets. While the initial concerns centred round the Greek budget deficit, which is now being addressed, there are fears that this has now transferred to other European countries and more problems will follow in the short to medium term.
All eyes have been on Portugal, Spain, Ireland and the UK and many investors believe one of these is likely to suffer a dramatic financial crisis in the short-term. Despite calls from European Union leaders for a fiscal overhaul of budgets and spending plans many believe this is too little too late and the damage has already been done. If money market rates continue to rise and credit availability continues to fall then we could well be on the verge of yet another credit crunch which could begin in Europe.
Those who believe that the worst of the financial crisis is now over may well need to sit up and take notice because we are entering a potentially dangerous and dark phase of the European "economic recovery". There is much work going on behind the scenes at the EU but many believe that internal bickering could delay the much awaited response to the European debt crisis.
Share this..
Related stories
Income funds and using them to assist with future living costs
As we grow older we can often see a reduction in our living expenses but a more sever reduction in our income. This can and has left many of the UK's older generation struggling in later life with many having to use their savings just to get by. But for some it may be worth looking at Income funds, investment funds which look to produce above average income and protect capital as much as possibl...
Read MorePrudential chairman likely to depart
Harvey McGrath, the chairman of Prudential, could be the first high profile victim of the failed attempt to buy AIG's Asian operations. The multibillion pound bid eventually failed due to an inability to agree a price as well as market factors which turned against the company. However, the very fact that the "non-acquisition" has cost Prudential in the region of £450 million is the main reason wh...
Read MoreBradford And Bingley Cash Call Goes To The Wire
It seems unbelievable that it is only today that we have seen the close of the Bradford and Bingley £400 million cash call - a saga which seems to have been going on for months!
The controversial cash call which was initially priced at 82p a share, only to be reduced to 55p a share, has also seen a potential US partner agree to come on board only to drop out at the last minute. In...
Cadbury issues upbeat trading statement
The management of Cadbury have surprised many in the city with a trading statement far more bullish than many had expected together with strong third-quarter sales growth and an increased profit forecast for the full year. The 7% increase in third-quarter sales comes on the back of a 4% increase in first-half sales which now places the pressure back on would-be suitor Kraft Foods which needs to ma...
Read MoreBritish Airways Price Fixing Case Set For Court
It has been announced that the Office of Fair Trade (OFT) is set to charge four former British Airways executives for their part in an alleged plot to fix fuel surcharges with Virgin Atlantic between 2004 and 2006. The case has been ongoing for some time and while the company itself has been fined hundreds of millions of pounds by UK and US authorities the prosecution of the four alleged accompli...
Read More