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
Gordon Brown pledges assistance for Cadbury workers
Gordon Brown has today pledged his support for the Cadbury workforce after the company was acquired by Kraft Foods in an £11.9 billion recommended offer. However, the government's swift response to the acquisition has backfired somewhat with the revelation that Royal Bank of Scotland, 84% owned by the UK taxpayer and effectively under the control of the government, is one of a number of UK financ...Read More
CBI reports increase in exports
The CBI has today issued a report which shows that UK businesses are on average seeing export orders up during the month of May. The survey shows that 3% more businesses in the UK are seeing export orders at "above normal" levels as oppose to "below normal" levels. This is the first time these two figures have crossed over since March 2008 and bodes well for the short-term prosperity of the UK eco...Read More
ECB pats itself on the back
The European Central Bank (ECB) has today indulged in a session of backslapping, congratulating itself on moves to protect the European economy over the last few months. This comes just hours after the German government announced a significant surge in manufacturing orders which many believe will mark the bottom of the Eurozone recession and could effectively see a recovery later this year.
Alex Salmond told to concentrate on Scottish economy
While he has become something of a peoples champion in Scotland by bashing the English at every opportunity it seems that Alex Salmond needs to get down to the bread and butter business of saving the Scottish economy. He is being accused by opposition parties of not acting quickly enough to safeguard up to 100,000 construction jobs in Scotland and being blinded by his controversial plans to fund...Read More