As we approach the end of the month, and await retail sales figures for September, a report by the CBI would seem to suggest that on balance 39% of UK retailers expect sales to be higher rather than lower over the next three months. When you consider recent figures from the CBI survey as well as the economic backdrop and recent comment in the financial press, a net figure of 39% is a very strong signal to investors.
Adam Posen, a member of the powerful MPC, has today come out with a keynote speech suggesting that the Bank of England needs to inject further capital into the UK economy sooner rather than later. He believes that now is the time to reintroduce the quantitative easing programme which has already swallowed up £200 billion although a statement on the additional investment potentially required has not yet been released.
Data released by the Office for National Statistics today shows that the UK economy grew by an impressive 1.2% in the second quarter of 2010 and the earlier growth figure of 0.3% for the first quarter of 2010 was revised higher to 0.4%. It seems that the UK economy has benefited from savers dipping into their funds and the UK government introducing a number of spending plans just prior to austerity measures kicking in.
It is becoming more and more apparent that the Conservative/Liberal Democrat coalition government is very much at odds with the Labour Party on a number of issues, with public-sector spending cuts at the head of the queue. When you also take into account the ongoing discussions regarding strike activity in the short to medium term there is even more daylight between the various political parties. It also seems that infighting amongst leading political figures could well jeopardise the UK economic upturn even more, as and when this may come.
Weeks before the general election there were rumours that many of the unions in the UK were already looking to plan industrial action in the event that the Conservative party and/or a coalition government was formed. At the time these accusations were dismissed by the Labour Party although slowly but surely the situation is beginning to emerge. It seems that Unions in the UK, after backing Ed Miliband, are now set for a prolonged period of industrial action which could well cripple the UK economy and especially hit the public sector.
Weeks before the general election there were rumours that many of the unions in the UK were already looking to plan industrial action in the event that the Conservative party and/or a coalition government was formed. At the time these accusations were dismissed by the Labour Party although slowly but surely the situation is beginning to emerge. It seems that Unions in the UK, after backing Ed Miliband, are now set for a prolonged period of industrial action which could well cripple the UK economy and especially hit the public sector.
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!
Ed Miliband will have his first test as Labour leader this week with news that the unions fully expect him to take part in a demonstration against public-sector spending cuts. This will be his first challenge as attending the rally, as apparently he had promised, would play into the hands of the coalition government who are currently painting him as "Red Ed".
In this very difficult economic environment it seems that each and every day brings a different report and a different angle on the European economy. Only a few days ago you could have been mistaken for believing the Irish government and the Irish economy was on the verge of collapse and problems in Portugal may well result in austerity measures been delayed or cancelled. However, on the other hand it seems that the overall European economy is a little stronger than many had expected even though the euro staged a retreat from recent highs against the dollar.
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.
