Stephen Hester cannot see the green shoots of recovery
The chief executive of government controlled Royal Bank of Scotland, Stephen Hester, has today shot down hopes of a quick turnaround in the UK recovery. Amid suggestions that he did not believe the green shoots of recovery have appeared yet he was unable to give a definitive forecast as to when the Royal Bank of Scotland will return to profitability, instead choosing to suggest that 2009 2010 will be "very difficult".
After a brief period of relative confidence in the UK economy we have seen a number of reports and comments over the last few days which appear designed to take the wind out of any potential recovery. While the proof is in the pudding, at this moment in time it looks as though the headlines suggesting the UK economy may bounce appear wide of the mark. In truth the real situation is probably somewhere between the hopeful headlines and Stephen Hester's opinion that the next two years will be very difficult.
Turning back to the Royal Bank of Scotland itself, the company announced losses of £4.9 billion for the first three months of 2009 with a suggestion that full-year write-offs could be in the region of £11 billion. Maybe the early green shoots have died already?
Share this..
Related stories
Is the UK government split on joining the euro?
While Minister for Europe, Caroline Flint, has today effectively ruled out a short-term move to join the euro this would appear to be seriously at odds with the views and opinions of Lord Mandelson for one. Slowly but surely the increasing pressure on the UK economy and the UK currency is seeing a number of cracks appear in the Labour Party at a time when teamwork and "singing from the same hymn s...
Read MoreEU leaders agree deal on banking bonuses
European Union leaders have today agreed the outlines of a new initiative which will see the EU look to agree deals with various European banks that would see bonuses clawed back if banks fail to hit their profit forecasts. This new initiative, ahead of the G20 summit, is an interesting alternative to the ones put forward so far by the UK and US administration. Whether or not it will be accepted b...
Read MoreWealth gap 'at 40-year high'
The gap between the rich and poor in Britain has reached a 40-year high, according to a new report.An analysis of wealth and poverty trends across the country between 1968 and 2005 concludes that people living in affluent areas have become "disproportionately" wealthier than individuals living elsewhere.There is also evidence of "increasing polarisation" between the rich and poor, warns the report...
Read MoreBank of England execs admit they were slow to reduce rates
In a rather damning indictment of the way the UK slowdown has been handled by the Bank of England it has been revealed that even executives within the bank believe they did not reduce rates quick enough to combat the ever growing slowdown. While we are fully expecting UK interest rates to be reduced later this week in line with those in the US many experts feel that this is too little too late.
Bush turns up the heat on Congress
Despite a blocking manoeuvre by his political enemies George Bush has turned up the heat in his battle to push through a $700 billion bailout package for US financial markets. The battle lines have already been drawn in the sand and this looks like going to the wire while markets fall away in fear of the deal being abandoned.
It has really come down to a battle of wills with Bush g...