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.
Euro zone factory orders recover
New factory orders in the euro zone, which covers 16 different countries, increased by 0.9% between March and April 2010 with a year on year increase of around 22.1%. While the annual increase is pretty much in line with analyst forecasts the monthly increase was below expectations of 1.8%. So what does this mean for the euro zone? On the surface these figures look very impressive and would see...Read More
Can we discount the threat of inflation?
As Mervyn King, the Gov of the Bank of England, prepares to write a letter to the UK government explaining why inflation has risen to beyond 3%, is the Bank of England's dismissal of the threat of inflation fair? Despite the fact that UK inflation has spiked above 3% and prompted a letter from the Bank of England to the UK government to explain the situation, Mervyn King has been fairly dismiss...Read More
Eurozone economies struggle in third quarter
03/10/2014 Companies in the Eurozone have continued to struggle throughout the third quarter of 2014, with the French economy performing particularly badly. Figures showed growth in the Eurozone economy has continued to slow down in recent months. The Purchasing Managers Index (PMI) for the Eurozone fell to 52 in September, down from 52.5 the previous month, suggesting that the pace of g...Read More
Marks & Spencer pours cold water on UK recovery
Despite reporting sales figures which are the best from the company for two years, Stuart Rose, the executive chairman of Marks & Spencer, believes that the UK recovery is still very fragile and 2010 is unlikely to be any better than 2009. This is something of a damning indictment of the UK retail sector after many investors and many companies appeared to have high hopes of recovery in the short t...Read More
Recession Watch : Interest rates
The question of interest rates and the potential impact they have on difficult economic times has been somewhat blurred in the UK over the last 12 months. Due to the unique situation economies around the world find themselves in we have seen significant reductions in the vast majority of base rates across the globe to levels never seen before. UK rates have quickly fallen from 5% down to 0.5% and...Read More