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.
S&P lowers Irish sovereign credit rating
Standard & Poor's, the renowned credit rating agency, has today announced a further downgrade on its rating for Irish sovereign debt amid signs that the government's banking bailout will be more expensive than initially thought. The rating was lowered to AA- which is three notches below the AAA that many governments around the world had enjoyed prior to the credit crunch and the worldwide recessio...Read More
Internet users are urged to fight new Digital Economy Act
A number of leading figures in the Internet arena have today urged hotels, cafes, pubs, restaurants, and other public locations offering Internet access to their customers, to fight the terms of the new Digital Economy Act. This is an act which was pushed through Parliament at the very last minute after a number of concessions were made to ensure the Conservative party would support the move. So w...Read More
Britons 'finding it hard' to make ends meet
Price rises are negatively affecting four in ten Britons' personal finances, data firm Mintel said today.According to new research from the body, released today, just 51 per cent of people now say that they feel "comfortably off" - down from 64 per cent two years ago.The continuing effects of the credit crunch, coupled with price rises for food and fuel, have been blamed for this trend.Commenting,...Read More
ECB cuts European base rates to 1.5%
As the European Central Bank (ECB) announced a reduction in European base rates from 2% to 1.5% it appears as though the ECB is also contemplating a policy of quantitative easing such as that ongoing in the US, UK and Japan.
This is a drastic measure for the EU authorities as just a few weeks ago there had apparently been hopes that the fall in European economies would not be as ba...
U.K. third-quarter performance figure adjusted
As is becoming the norm at the moment, the Office for National statistics has released adjusted figures for UK economic performance in the third quarter. Due to an upward revision in output growth in the services industry the new figures show that the economy fell by just 0.3% between July and September against initial estimates of 0.4%. It is believed that many analysts had expected this upwar...Read More