100,000 British companies in financial trouble
A report by Begbies Traynor claims that upwards of 100,000 British companies are in serious financial trouble with over £58 billion of debt between them. There are also 50,000 other companies likely to be hit by UK government cutbacks which will make the situation even worse and potentially tip tens of thousands more companies over the edge. There is no doubt that beneath the surface there are many companies struggling to survive and any lurch downwards by the UK economy could have a catastrophic impact on the UK business arena.
The report by Begbies Traynor is a major blow to the UK financial arena although thankfully UK banks have grouped together to create a £1.5 billion rescue fund for small to medium-sized businesses. Whether this is too little too late remains to be seen but there is no doubt that UK companies do need increased liquidity and they need it quickly!
Inflation in the UK continues to remain stubbornly high, unemployment in the UK is creeping ever higher and the economy is under major pressure. The higher unemployment rises the more pressure this places upon the welfare state and ultimately we could see many of the budget cuts introduced by the government negated by a massive increase in benefit payments.
When will the construction sector recover?
The latest construction purchasing managers index (PMI) has confirmed what many people had feared with the construction sector contracting for the 22nd month in a row. Even though there are signs that the UK economy as a whole may well be stabilising and potentially turning the corner there is concern that the construction sector will lag the recovery and could struggle for some time to come. So w...Read More
Is the recession over on the high street?
Today's news that UK retailer Next has increased its own internal profit forecast for the current year, after announcing interim figures which were ahead of analyst expectations, would appear to suggest that the UK recession is ending on the high street. When you consider that Next is at the higher end of the food chain which is the UK retail sector, this is definitely a good sign for the future a...Read More
Is deflation still a major problem?
Only a few days ago the inflation figures surprised on the upside and many analysts believed this was the beginning of the end of the recession. However, today's release of the August monetary policy committee notes suggest that Mervyn King, and two other members of the MPC, believe the economy is still struggling and deflation could be a major problem in the weeks and months ahead.
Is quantitative easing just around the corner?
Mervyn King, the Gov of the Bank of England, has this weekend suggested that the "printing of extra money" in the UK is just around the corner. Commonly known as "quantitative easing", in simple terms this allows the UK authorities to print as much new money as they require in order to try and stimulate the UK economy into life. This type of economic strategy only ever comes into play when nationa...Read More
Bank 8-1 in favour of rate hold
The Bank of England voted 8-1 in favour of maintaining interest rates at 5.25 per cent earlier this month, meeting minutes have revealed.Monetary policy committee (MPC) member David Blanchflower was the sole dissenter, unexpectedly advocating a reduction in base rates by a quarter of a per cent.Today's minutes revealed that despite latest consumer price index (CPI) inflation figures standing at 2....Read More