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.
Unemployment rises to 1.82 million
Confirmation that the rate of unemployment in the UK is approaching 2 million will be a further reality check to those who assume the economy will bounce back in the short to medium term. So far the unemployment figures have been nominated by the low paid workforce but there are signs that problems are growing in the middle-class of the working public.
If the middle classes are stru...
Alistair Darling fails to sparkle
Alistair Darling has come in for severe criticism in the press today regarding his handling of the UK budget and the way in which it was presented. He has even been accused of having a "boring attitude" when in reality there was not an awful lot for him to shout about bearing in mind the economic situation in the UK. Would voters have appreciated an upbeat sounding Alistair Darling giving the wors...Read More
Santas in bank bonus protest
A group of campaigners dressed as Father Christmas have descended on the City of London office of RBS in protest over executive bonuses.The London Coalition Against Poverty (LCAP) handed out leaflets criticising the part-nationalised bank's right to pay staff large bonuses, the Press Association reports.RBS received a significant proportion of the October £37 billion government banking bail-out a...Read More
Bank of England calls for more power
A report by the Bank of England has highlighted the fact that the interest rate loan will not save the UK economy in the short to medium term and indeed will need to be complemented by other powers in the longer term. A review of the UK economy over the last decade has shown that the Bank of England would have had to push UK base rates to between 6% and 19% to control what was at the time an uncon...Read More
Gordon Brown takes over the EU summit
It seems very much that Gordon Brown is on the move, he is on a roll and he wants the whole world to know about it!
After taking his place at the ongoing EU summit in Brussels which is discussing how to combat the European banking crisis, Gordon Brown has literally taken over. He has challenged EU leaders to move to stage two of his UK blueprint and look at how regulations across t...