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.
No pain no gain
While the saying 'no pain no gain' is used in many forms of life the stock market could not be a more apt place for the saying. News that the US rescue deal has fallen through, at least for the time being, together with the demise of Bradford and Bingley has sent investors running for the exit. As one prominent investor put it today on the radio, 'The one thing which the City hates is uncertaint...Read More
Mervyn King rocks the government's boat
In this evening's Mansion house speech Mervyn King has rocked the UK government boat by suggesting that the Bank of England needs increased powers to control and regulate the UK financial sector. In a rerun of what is happening in the US, Mervyn King believes the Bank of England needs to regain the power it lost some time ago when the Financial Services Authority (FSA) was introduced to the mix. T...Read More
Steelworkers union denies offering to take a pay cut
As reported recently there have been strong rumours that unions representing the workforce of Corus, the worldwide steel business, are looking to hammer out a deal with the company which will see pay cuts across the board for the next six months in order to save at least one factory earmarked for closure. However, the unions are currently denying this claim although they agree they have an imminen...Read More
DSG International reports record Christmas sales
DSG International (the owner of the Dixons, Currys and PC World product brands) has today revealed record Christmas trade with like-for-like sales up 8% on the same period last year. After a couple of disappointing retail trade updates over the last few days it seems that we are back on to the positive path with the DSG International reporting sales of a TV and computer every two seconds in the 12...Read More
'Biggest UK banking loss in history' to be announced by RBS
RBS, Britain's second-biggest bank, is set to announce the biggest loss in the sector's history this week.According to a group of analysts, who spoke to the Reuters news agency, the firm will say on Friday that it lost £1.2 billion from January to June 2008.This is the largest single negative earnings declaration of any UK bank.Credit crunch related asset writedowns of £5.9 billion have already...Read More