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.
Gordon Brown and the British Airways headache
Gordon Brown is today under more pressure with regards to the strike action by the Unite union on behalf the British Airways employees. Despite speculation that the Unite union, by far and away the largest donor to the Labour Party coffers, would step back until after the election it was revealed that a number of international union agreements have been discussed. As a consequence it is believed t...Read More
Bank of England set to increase quantitative easing programme
The Bank of England monetary policy committee is today expected to agree a £50 billion increase in the quantitative of easing programme which will bring the total funds available to £225 billion. This is a situation which has been ongoing since February and while it has had an impact on the UK economy there are concerns that it is now running out of control and the extra funds may not have the d...Read More
Will UK base rates rise in 2010?
Today's minutes from the latest MPC meeting indicate that all members of the committee were in favour of maintaining UK base rates at 0.5% although there is growing concern about inflation. It looks as though the recent weakness in the UK currency has caught the attention of many MPC members and there is now speculation that UK base rates could indeed rise before the end of 2010, to offset the thr...Read More
Down on his luck and down in the polls, Gordon Brown attacks the city
Gordon Brown has today joined the attack, yet again, on the UK banking sector and threatened to cap future bonuses in the industry. The move, which many believe is purely and simply a way to divert attention away from other issues in the UK ahead of the next Labour Party conference, appeared to indicate that bonuses will be capped in the future, but this has not been clarified with any real founda...Read More
Bond yields fall amid concerns of double dip recession
The yield on 10 year government bonds fell to record lows yesterday in the UK amid signs that the UK economy is poised for a significant downward turn. This is the latest knock on effect of recent comments from MPC members in relation to a possible double dip recession in the UK. As a consequence, Bank of England growth forecasts for 2010, 2011 and beyond are now being called into question. Gov...Read More