Spain suffers cut from Standard and Poor's
Credit rating agency Standard and Poor's has today reduced the credit rating on Spanish national debt from AAA to AA. This is a major blow for the Spanish economy and the Spanish government and comes amid signs that the Greece debacle is now affecting other European economies. Yesterday we saw Portugal suffer the indignity of a credit rating downgrade and experts believe more downgrades are on the way.
The ongoing problems within the Eurozone have impacted upon the euro itself which has come under significant selling pressure over the last few days. Despite the fact that only a few days ago it looked highly unlikely that any European country would default on its national debt, the chances of this happening have increased dramatically over the last 48 hours. There is also concern that the global economy could be impacted by the debt problems within Europe and we could move back towards another worldwide economic downturn.
Even though the UK stock market was fairly steady today, compared to yesterday, we did see significant falls in France, Germany and Spain and there is growing concern amongst investors. Despite the fact that the German authorities appear to have been dragging their heels regarding a solution for the Greek debt problem, it was the German government who today called for a "speeding up" of negotiations between the Greek government, the IMF and the European Union.
ONS delays release of economic data
The Office for National Statistics has seen its repetition dented further with news that vital GDP and other economic data set to be released has been delayed due to potential errors found in the data. There has been growing concern about the quality and accuracy of official data from the Office for National Statistics for some time and indeed many analysts tend to discount the first set of figure...Read More
Is the EU taking control of member budgets?
A number of prominent figures within the European Union are now suggesting that the European Union itself should have the ability to cast an eye over draft budgets for member states. This is the latest in a long line of new regulations being suggested by those within the European Union to give more control over European Union members. But would this actually work? The issue of budget problems...Read More
Recession in Britain set to last 18 months
City analysts today warned the government that the British economy is set to witness a recession which could last up to 18 months. Capital Economics predicts that the gross domestic product for the UK will fall for the first time since the recession of 1990, down by 0.2%. However, it has also been warned that these predictions may be fairly conservative ones - with analysts preparing for even larg...Read More
Marks & Spencer surprises on the upside
Half-year results from Marks & Spencer surprised analysts on the upside with a net profit of £224.3 million against last year's figure of £223.2 million. In total, revenue rose by 2.75% to just short of £4.5 billion with a 1.8% increase in UK turnover and a 12.2% increase in international operations. So does this mean the end of the recession on the high street?
While there is no...