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.
UK manufacturer LDV begs government for support
The Russian owners of LDV Vans have today approach the UK government for support in the region of £30 million. The company is not requesting a direct loan from the government but is suggesting that the process which began last month is speeded up and up to £2.3 billion of loans and guarantees are made available to the vehicle manufacturing sector in the UK.
The situation has been...
MPC committee vote in favour of quantitative easing
The minutes for the recent Bank of England monetary policy committee meeting have been released today and show that all members of the committee are in favour of commencing quantitative easing as soon as possible. There was also concern in the minutes that the committee has been "slow" in reducing interest rates in the UK over these troubled times which has led to a run on sterling today.
Gordon Brown claims victory in Gulf talks
Gordon Brown has claimed victory in his recent talks with Gulf states where he asked them to contribute part of the trillion dollar windfall they have received from the recent spike in the oil price to the IMF. While there has been no official comment from the Gulf states there is immense pressure on them to increase their contribution to the IMF at a time of great hardship.
Will British Gas Price Hike Push Bank To Increase Rates?
While the consensus for this week's Bank of England meeting has for some time been a 'no change in interest rates' stance there is a growing concern that the recent rise in energy prices by British Gas may force the Bank to increase rates to combat inflation. Even though the increase has nothing to do with inflation, and more to do with the price of oil and energy prices in general, there is a fe...Read More
Is it too late to jump aboard the Internet bandwagon?
As more and more people across the UK come to terms with the prospect of losing their jobs, there is a growing sense of interest in the online environment. While many people will have you believe that it is "too late" to jump aboard the Internet bandwagon this is in fact very wide of the mark as the Internet is still relatively immature in comparison to worldwide economies and there are still a nu...Read More