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.
Scottish drinks industry under pressure
Despite the fact that the Scottish drinks industry is still reeling from Diageo's plans to close their plant in Kilmarnock, with a loss of 700 local jobs and up to 900 jobs countrywide, there appears worse to come. It has been announced that AB InBev the owner of the Tennents Lager brand, one of Scotland's more prominent drinks, may well be about to put the business and brand up for sale.
UK corporate failures set to rise
Corporate insolvency specialist Begbies Traynor said today that the number of corporate insolvencies in the UK was relatively flat in the six months to the end of April 2010 compared to the previous six months. However, the company believes there are a great number of UK companies which are effectively "zombie businesses" and dead on their feet at the moment. It is these companies which are highly...Read More
Another leisure firm bites the dust
After news that XL Leisure Group, one of the UK's largest leisure groups, has gone into administration it seems that there are up to a dozen other companies literally on the brink of going under. When you consider that the XL Leisure issue has left up to 90,000 people stranded and unable to get home as planned, how bad can it get if another 12 companies were to go under!
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 a worldwide economic recovery bailing out the UK?
While the economic figures in the UK of late have been mixed there is a feeling that the UK economy is in some way being bailed out by the worldwide economic recovery. It is becoming more and more obvious that domestic demand for goods and services is still very subdued while exports have shown resilience over the last few weeks. As a consequence, the UK economy appears now to be at the beck and c...Read More