Mervyn King plays down the threat of inflation
Mervyn King, the governor of the Bank of England, has this evening played down the threat of inflation in the UK suggesting that inflation is just as likely to under shoot its target as to overshoot. This is the first major speech from Mervyn King since August and would appear to suggest, just prior to the issue of October MPC minutes, that there is some debate within the committee as to the direction of the UK economy.
Mervyn King has many months suggested that UK inflation is not a reliable measure of economic activity and the underlying strength of the UK economy. He has for some time believed that inflation will fall back to within the banks 2% target rate in the short to medium term without any major action from the authorities. Indications that the UK economy is beginning to weaken, after a period of relative buoyancy, would seem to support this belief although so far the figures have refused to fall into place.
The Bank of England is beginning to give the impression of a body which is frustrated by the relative strength of inflation despite numerous attempts to talk down the threat of inflation in the UK.
Alitalia airline moves one step closer to collapse
Despite the fact that investors were waiting in the wings for the go-ahead it seems as though a dispute with Unions has scuppered the final chance of saving the stricken airline Alitalia. It seems crazy that the Unions would rather reject the rescue package and see the airline go to the wall than agree to structured job loses and at least employment for some of the airlines employees. So what ne...Read More
Olympics fail to Provide Economic Boost
Analysts have delivered a blow to the hopes that the Olympics would provide the UK with a major economic boost, after it was claimed that the event had not returned significant financial gains to the UK, after £9.3bn was spent in preparing for, and running the games. The construction sector did reap huge benefits from the preparation for the Olympics, and the games also provided a good chance...Read More
21 million 'sickies' pulled in 2006
Employers suspect that one in eight worker-absences last year were examples of staff "pulling a sickie", meaning 21 million days were lost.The Confederation of British Industry (CBI) says these unauthorised absences cost the British economy £1.6 billion in 2006, warning that a "culture of absenteeism" is seeping into UK workplaces.In total the trade association claims its survey shows that 175 mi...Read More
UK inflation falls to 1.6%
As UK inflation continues to fall, amid signs that supermarkets around the UK are still determined to fight for customers, there is a feeling that inflation will continue to fall until 2010. While this is obviously helpful for consumers and businesses in the short term, it will reduce the opportunities to increase profit margins and ultimately get the UK corporate sector back on the rails.
Citizens advice bureau is 70 years old today
The citizens advice bureau is 70 years old today having survived wars, recessions, house price crashes and an array of other major issues and it still remains a key element of the UK welfare system!
The bureau has given advice to literally millions upon millions of UK consumers and businesses many of which have been desperate with nobody to turn to. While many older financial-based...