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.
Bank of England leaves base rates unchanged
The Bank of England MPC (Monetary Policy Committee) has today maintained UK base rates at 0.5% and refrained from announcing an increase in funding for the quantitative easing program. This was very much the case which we covered earlier today although the authorities have indicated they will look again at the UK economy next month and decide whether to alter base rates or increase the funding for...Read More
Office of Fair Trading set to monitor UK banking sector
As the UK government continues to tighten its grip on the UK banking sector it has received a stark warning from the Office of Fair Trading (OFT). The OFT has reiterated its earlier stance that the UK government must not be able to dictate and dominate the UK banking sector in the short to medium term.
Those who have followed the situation in the UK banking sector will be well aware...
G20 leaders make banking bonuses their main target
Today saw the beginning of the G20 summit where all leaders present appear to have agreed a way forward to contain and control banking remuneration packages in the future. Despite the fact that there are so many other issues to consider, none greater than the worldwide economy, it seems that G20 leaders are still looking to grab the headlines as they have done in each and every G20 summit.
Mervyn King issues downbeat statement on UK economy
Even though today's statement from Mervyn King was effectively leaked to the press some time ago, the inflation report from the Bank of England monetary policy committee pours cold water on hopes of a short term recovery in the UK economy. In an admission that the recession has been deeper than previously estimated, Mervyn King believes that the recovery process will be more prolonged than first t...Read More
UK holiday resorts under pressure
A report by the Trade Union Congress (TUC) has confirmed the worst fears of many in UK regarding traditional seaside resorts. In many places around the UK such as Bournemouth, Weston-super-Mare and Weymouth the rate of unemployment has doubled over the last year with more bad news expected in the short to medium term.
The TUC believes now is the time for the UK government to at wors...