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 services sector under serious pressure
Over the last 30 years the UK has moved from a manufacturing based economy to a services based economy with literally millions of jobs created in the services industry. However, it has been revealed that for the ninth month in a row there have been significant job losses in the services sector and there are concerns that this could continue for some time to come. While there is one crumb of hope,...Read More
Food prices lead to worse than expected inflation figures
Only last week it appeared the UK inflation rate was set to fall from 3.1% in July to 3.0% in August, which makes today's announcement from the authorities even more disappointing. The consumer prices index remained at 3.1% in August despite analyst's expectations of a slight easing and a "move in the right direction". So what went wrong? There is no doubt that food inflation is behind the unde...Read More
Irish debt rating on review
Moody's, one of the more prominent debt rating agencies in the world, has today confirmed that Irish sovereign debt is on review with a possible downgrade under consideration. If a downgrading was to proceed it is likely it would be a one step downgrade to an Aa3 rating. However, this is just the latest in a long line of bitter blows to the Irish economy, the Irish government and the Irish budget....Read More
Shoppers seem to be attracted to value
While we have seen many shoppers attracted to cheaper food produce across the supermarket sector it would appear that this particular trend is being repeated on the high street. Privately owned fashion group Peacocks has confirmed a 15.2% increase in sales in the fourth quarter of 2008 at a time when the vast majority of the UK retail sector were struggling. Peacocks is one of the leading value le...Read More
Is it possible to control economic cycles?
While Gordon Brown once famously professed to ending the economic boom and bust cycle, he was later shown to be foolish in his assumption that economic cycles can be controlled to that particular degree. But is it possible to control economic cycles to any degree?
The truth is that economic cycles can in many ways be controlled to some degree but ultimately they are the brainchild o...