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.
The UK German feud goes on
The UK ambassador to Germany has this evening submitted a formal complaint regarding the public and damning attack on Gordon Brown regarding his role in the EU economic revival plan. Members of the German Ministry were quoted as ridiculing his VAT reduction plan and the substantial increase in UK debt. Even though the German government openly attacked the plan they have since signed up to a simila...Read More
Agency Staff And Full Time Staff Will Be Equal
After a number of years in the making it seems as though the government, the unions and the CBI have come to an agreement about how agency workers are treat in the workplace. For many years some companies have made use of agency staff to cut their costs and pay them less than full time staff doing the same job. Many companies have also been able to reduce other costs such as pension contribution...Read More
Are the indicators pointing towards a double dip recession?
Over the last few days a number of parties have expressed their concern about the short-term direction of the UK economy and a growing number of executives are worried about a possible double dip recession. This comes at a time when the UK government is looking to push through massive public-sector budgets spending cuts which will at the very least cause a drag on the UK economic recovery. So are...Read More
How Did It Go So Wrong For The UK Economy?
The Alistair Darling interview with the Guardian newspaper has 'let the cat out of the bag' in the words of Shadow Chancellor George Osborne. After months of refuting suggestions that the economy was on its knees and sinking it seems that the government - or at least Alistair Darling - has come around to this way of thinking. The signs are there, the pressure is building and this sheds a whole n...Read More
Is the Bank of England scared of inflation?
Fears are growing regarding the potential threat of inflation with the Bank of England letting it be known that inflation could be a problem in 2010 and we could see a surprise increase in UK base rates. This comes despite the release of minutes from the April MPC meeting at which all members voted in favour of retaining base rates at their current low although concerns were voiced regarding infla...Read More