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.
Sterling continues to fall as traders target the UK
Sterling continues to fall on the foreign exchanges as traders target the UK currency which is currently friendless. What was initially a situation of concern has now turned into a disaster for the UK government as the currency continues to be pounded by speculators and investors alike. So what next for the embattled UK currency?
As we have covered on a number of occasions the short...
Are public-sector cuts hitting the private sector?
The UK government is attempting to push through massive public-sector budget cuts in the short to medium term and there are already signs that these cuts are impacting upon the private sector. One example is service provider Connaught which has seen its share price collapse from over £3 to just over £1 in three days after announcing that a number all local authority projects had been put on hold...Read More
Co-op fails Bank of England “Stress Test”
16/12/2014 The Co-op bank has failed a stress test conducted by the Bank of England (BoE). HSBC, Barclays, Santander, Standard Chartered and Nationwide all passed and Lloyds Banking Group and Royal Bank of Scotland were found to be at risk in the event of a "severe economic downturn". The test was given by the Prudential Regulation Authority (PRA), which is part of the BoE. It was designed t...Read More
Central banks warned about complacency
A meeting of global leaders in Toronto has seen the emergence of a strongly worded warning to worldwide governments reminding them of the need to slash budgets and a future need to move base rates higher sooner or later. This warning is also aimed at central banks which are effectively independent operators who monitor local and global economies. So what does this warning mean? There is no doub...Read More
Bankers pay flourishes in recession
Bankers in the City of London have today been criticised with the revelation that pay packets for the current year increased by 6% to an average of £53,223. At a time when UK taxpayers have literally "loaned" individual banks and the banking system as a whole, hundreds of billions of pounds, it seems that taxpayers are yet again being short changed and the bankers of the UK are flourishing again....Read More