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 retail sales increased by 0.3% in December
UK retail sales increased by 0.3% in December which is a far cry from analysts expectations of a 1% increase. However, when you consider the number of positive trading statements we have seen over the last few weeks it seems rather bizarre that sales on the whole only increased by 0.3%. This disappointing retail sales figure will do nothing for the UK stock market and investors who have suddenl...Read More
Can the UK government control factory price inflation?
Last week's revelation that producer prices are now rising at the fastest rate for 14 months has made many people think again about the potential threat of inflation. While the Bank of England and the UK government appear happy that inflation will fall back in the short to medium term there is concern that renewed pressure on the UK currency will increase the cost of producing goods in the UK and...Read More
Kraft Foods looking to create jobs at Cadbury
Despite headlines over the last few days suggesting that Kraft Foods would introduce a cull of jobs at Cadbury in the UK it seems that the company has very different plans. It has been revealed over the weekend that Kraft Foods is actually looking to create more jobs in the UK in the medium to longer term after assessing the situation and cutting out any synergy savings in the short term. Wheth...Read More
OECD sparks bitter war of words with S&P
The Organisation for Economic Co-operation and Development (OECD) is this evening involved in a bitter war of words with credit ratings agency Standard and Poor's after a threat to downgrade the credit ratings of the UK and US. This comes after S&P recently went ahead with a downgrade of Spain's credit rating from AAA to AA+ in what they claim was a reflection of both the Spanish economy and the S...Read More
Gordon Brown gives Liberal Democrats time to talk with David Cameron
While in public Gordon Brown has given his backing to the Liberal Democrats intention to talk with David Cameron before possibly discussing a coalition with the Labour Party, behind the scenes work is continuing on a potential Liberal Democrat and Labour party coalition. In what amounts to a public relations exercise the Conservative party, with the largest share of the vote and the largest number...Read More