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.
Did Gordon Brown make the recession worse than it should have been?
A report by the Institute of Fiscal Studies (IFS) has today cast aspersions on Gordon Brown's handling of the economy prior to the 2007 credit crunch. The IFS believes that overspending in the public sector as long ago as 2001 saw the financial position of the UK fall to its weakest for many years. There was concern at the time that Gordon Brown refused to increase taxes in line with public sector...Read More
US Federal Reserve upbeat on US economy
The US Federal Reserve has today issued a statement regarding the US economy suggesting that economic activity in the US is strengthening and the employment market is gaining momentum. This comes at a time when their European arena is in turmoil with the Greek debt debacle now impacting upon other countries in the Eurozone. Despite the fact that the US Federal Reserve has issued a positive stat...Read More
Royal Bank of Scotland to announce further job cuts
Sources close to the Royal Bank of Scotland are today making media companies aware of an impending further 500 job cuts at the stricken banking operation. Only two years ago Royal Bank of Scotland was seen by many as the largest bank in the world, with exposure everywhere from the Americas to the Far East, although how the situation has changed! It is believed that the 500 job losses in questio...Read More
Is Ken Clarke the Tory Party's secret weapon?
At a time when David Cameron needs all the help he can get it is evident that Ken Clarke is coming more to the fore with many party members pushing him forward as a spokesperson on the economy and the spending habits of the Labour Party. Despite the fact that George Osborne is the shadow Chancellor of the Exchequer it is noticeable that he has been very quiet on the economy over the last few days....Read More
UK interest rates set to fall by half percent
The UK economy is set to receive a boost later today with speculation rife that the Bank of England will introduce a 1/2% base rate cut to try and kickstart the economy. There have been various rumours and counter rumours over the last few days with regards to the direction of base rates but it now appears as though the MPC committee have decided to go with a middle-of-the-road approach leaving fu...Read More