Are we poised is to see the third leg of the credit crunch crisis?
After the initial credit crunch hit the US and began to spread around the world there was a period when many observers believed concerns had been overdone and the markets and economies around the world would return to "normal". However, we then saw a second leg which impacted upon the worldwide financial sector, stock markets, government budgets and other vital elements of "everyday life". However, there are growing concerns that we could be poised to see the third leg of the credit crunch hit the worldwide economy!
Earlier this week we saw concerns appear regarding the Greek economy, which has struggled due to the downturn, with a massive increase in the Greek government budget deficit. There is also the ongoing situation in Dubai which, despite government claims that it is "under control", still has some way to go before it is totally resolved. As a consequence, there is growing fear in the money markets that more governments around the world will struggle to raise funds needed to see them through the short to medium term, a time when the worldwide economy and local economies should start to turn the corner.
The danger is that if economies are starved of potential financial investment in the short term we could see a sharp U-turn and a further lurch downwards. This could literally push the worldwide economy into a depression, never mind a recession!
CBI survey signals consumer upturn
While the headline figures from the CBI's latest survey make excellent reading, with 44% of the 143 companies who responded confirming sales grew in the first half of April, there is more to the report than meets the eye. Immediately after the figures were announced it was also revealed that the timing of Easter this year may well have given early April sales a significant boost and the figures co...Read More
Investigation into Flyglobespan collapse
The Scottish government has today announced an investigation into the collapse of Scotland's largest airline company, Flyglobespan. The company collapsed last week after last-minute rescue talks failed and the group had no alternative but to call in the administrators. Over 500 staff lost their jobs at the company and thousands of holidaymakers were left stranded overseas, many of them unprotected...Read More
FSA brings hope to Lehman collapse victims
The FSA (Financial Services Authority) has today issued a report into the collapse of Lehman Bros with a suggestion that many investors in the UK may have been misled or received inappropriate advice from the UK financial sector. After a period during which it seemed as though investors had been cut adrift by the regulator, there is now a real possibility that companies could be brought to account...Read More
Home insurance warning for cold snap
Home insurance policies will need to be checked over the coming few weeks, it has been claimed, as cold weather is on the way.Home insurer More Than has warned that properties could be at risk of damage as weather forecasters are predicting a sharp deterioration in the weather, with temperatures plummeting.Taking precautions such as checking lagging is in place on pipes and keeping the heating on...Read More
Home Retail warns of 'challenging' market
Home Retail, the UK's largest household goods retailer, has posted a higher-than-expected annual profit, but warned that the retail market is likely to remain challenging over the forthcoming year.In a statement the company revealed that profit before tax goodwill and one-off items was up 13 per cent in 2006, to £376.7 million.The preliminary results also showed that overall group sales were up s...Read More