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.
Finally the government admit recession is likely
While the Bank of England had already softened the ground with suggestions that the UK is heading for a recession it was finally time for Gordon Brown to wake up and smell the coffee today as he agreed that a recession was a distinct possibility. However, he has admitted this at a time when the Tory Party is under severe pressure with regards to a suggestion that they attempted to arrange a party...Read More
What do you know about Nicholas William Peter Clegg?
Nicholas Clegg is the leader of the Liberal Democrats and many believe that he could act as "kingmaker" if the forthcoming general election is a very close call. Born on 7 January 1967, in Chalfont St. Giles, Buckinghamshire he is one of four children to a half Russian father, who had experience in the banking industry, and a Dutch mother. Nick Clegg began his political career in the European P...Read More
Is a worldwide economic recovery bailing out the UK?
While the economic figures in the UK of late have been mixed there is a feeling that the UK economy is in some way being bailed out by the worldwide economic recovery. It is becoming more and more obvious that domestic demand for goods and services is still very subdued while exports have shown resilience over the last few weeks. As a consequence, the UK economy appears now to be at the beck and c...Read More
IMF fails to bring agreement in currency wars
Last week's IMF meeting failed to bring about an agreement between leading governments with regards to so-called currency wars. As we covered earlier last week, the IMF is concerned that local governments around the world are more concerned with their own currency issues than looking at the wider picture. The likes of the UK, US and China in particular appear ready to dampen any recovery in their...Read More
Bank 'might cut rates again'
A further cut to interest rates from the Bank of England is expected later this week.Groups including the British Chamber of Commerce (BCC) believe that the Bank rate will be reduced from its current level of two per cent.The markets have priced in a 50 basis point reduction to 1.5 per cent - which would be the lowest official rate in the Bank's 300-year history.Reducing the Bank rate generally le...Read More