Barclays bank upbeat on the future
After the announcement from Barclays bank confirming that net income increased to £1.89 billion against £1.72 billion for the same period last year, the first results from the UK banking sector were accompanied by an upbeat statement for the future. The company's share price responded with a rise to a 10 month high with many analysts already assuming that the worst is over and the UK economy is about to turn.
While there are still issues to resolve regarding write-offs and bad debts, the doubling of profits at the company's investment bank division to just over £1 billion would indicate that financial markets are again starting to loosen up. When you put together the reaction of investors and the comments from various analysts it does appear that the UK government's financial backing of the sector as a whole, and the increased liquidity, may well have contributed significantly to the improvement in trading conditions.
However, on the horizon there is still the potential for large bad debt write-offs in the short to medium term with many UK consumers and UK businesses holed below the waterline. It will be interesting to see how the markets react to the rest of the banking sector reporting season because even the slightest indication of concern could have a significant impact on share prices.
Share this..
Related stories
Is your financial future in the hands of George Bush?
As the $700 billion US bail out gets ever nearer it has been suggested that the financial well being of the world is in the hands of the US authorities. If this is the case, what will the US government expect back from governments around the world? Surely they would not take this risk without something 'in it for them'?
First and foremost it has to be said that not only did the cre...
Is this a budget to help Gordon Brown or a budget to help the country?
The UK press is today full of rumours and suggestions as to whether this latest £21 billion gamble by the government is a budget to help Gordon Brown or a budget to help the country. While some of the comments in the press may be a little unfair due to the fact that the government has little option but to follow through on earlier spending promises, by the year 2013 this Labour government would h...
Read MoreCap on benefits pushes more people into work
17/12/2014 New research from the Department for Work and Pensions has claimed that a cap on benefits is providing an incentive for people to get back into work. The study showed that people who were affected by the cap were 41% more likely to return to work than those who still received the same amount of benefit payments before the cap was introduced. The cap limits benefits that a house...
Read MoreIs the UK economy really the worst in the developed world?
As we covered yesterday, the International Monetary Fund (IMF) has issued a suggestion that the US and the UK economies, taking out the oil-producing countries, are the weakest in the world. To put this into perspective, the UK government is expected to borrow 9.5% of GDP in 2009 which is equivalent to £140 billion although this will increase further in 2010 to 11% of GDP equating to borrowings o...
Read MoreGordon Brown demands wartime spirit from UK consumers
Gordon Brown has today issued a rallying call to the UK population to show some wartime spirit in these very testing times. However, despite a number of public appeals it would appear that the general UK consumer is lacking in both confidence and ready cash to make any significant impact on the economy at this moment in time. This is the latest attempt by Gordon Brown to instil a "must do" attitud...
Read More