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.
Could the Falkland Islands be David Cameron's saviour?
This week's news of a potentially enormous oil discovery in waters just off the Falkland Islands could turn out to be David Cameron's "North Sea oil boom". While it will be some time before oil production is in place, there's no doubt that potentially there could be billions of pounds of taxation income awaiting the UK authorities. As oil exploration continues in and around the Falkland Islands...Read More
IMF backs UK government
The UK government has received the backing of the IMF as David Cameron attempts to introduce massive cost-cutting exercises to the UK public sector budget. The support of the IMF will be very useful in the weeks and months ahead as opposition parties look to muddy the water and attempt to distance themselves from the ongoing austerity measures. The IMF has also reiterated its view that the UK e...Read More
Lord Turner tells banks to write their living wills
The Financial Services Authority (FSA) will today reaffirm its determination to ensure that each and every financial institution in the UK has a "living will" available in the event of its collapse. As we have seen with the likes of Royal Bank of Scotland and HBOS, when these companies hit a troubled patch it can take the regulator some time to confirm the situation, liabilities and potential liab...Read More
Why are we seeing more job losses if the economy is improving?
Over the last few weeks we have seen an increase in job losses at some of the U.K.'s more prominent companies despite the fact that the UK economy has officially moved out of recession. Many people will be confused to see the UK economy on the up but job losses continue to be announced on a daily basis. So why are we seeing more job losses if the UK economy is improving? As we have mentioned on...Read More
Bank bailout criticised
The chief executive of HSBC has criticised the government's bank bailout, claiming that it may encourage future reckless behaviour.Michael Geoghegan said that his bank had been run using conservative policies which allowed it to stay afloat during the financial crisis.He told the Guardian that banks and others in the City had been punished by the markets for their errors but they might not learn f...Read More