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.
Let's blame the City for all of our woes
It was inevitable but few thought that the government would actually utter the words which were heard at the Labour Party conference today as they sought to blame the City for everything which has gone wrong over the last decade. The City has been targeted by the government - with the strong backing of the Unions - in a rich versus poor, good versus evil battle to attempt to contain City wages an...Read More
Gordon Brown finally admits Labour will cut investment in public services
After months of a phoney war with the Conservative party Gordon Brown has finally admitted that he will be forced to cut investment in public services for the first time under his tenure. This is a major U-turn for Gordon Brown, with rumours that Lord Mandelson and Alistair Darling have been pushing him for months, and an embarrassment for the UK government. Hoping to separate the Labour Party and...Read More
IMF believes UK jobless total set to rise
Despite hopes that the UK economy will finally turn around and move into recovery mode in the short to medium term, the International Monetary Fund (IMF) has today poured scorn on hopes that the UK jobless total will soon peak. The IMF believe that unemployment in the UK will continue to rise well into 2010 and indeed the UK is one of the worst performing economies in the world at this moment in t...Read More
UK 'hardest hit in Europe' by crunch
Britain is likely to be harder hit by the credit crunch than other European nations, experts have said.According to economists the relatively high levels of exposure to debt among consumers and the sharp decrease in house prices will affect UK consumers markedly, the News of the World reports.The economy's high exposure to the financial services and banking sector - within which the credit crunch...Read More
Is the Bank of England about to spoil the economic party?
The Bank of England is this week expected to pour cold water on hopes that the UK economy is on the verge of a significant recovery. Despite politicians attempting to talk up the economy at any opportunity it seems the Bank of England is set to reduce growth forecasts of 2009 and 2010 and question the strength and vulnerability of the "ongoing economic recovery".
This could not have...