Airline industry under more pressure
In an amazing development bookmaker Paddy Power has begun to take bets on which airline will be next to fall by the wayside. The well-known bookmaker has slashed the odds on Monarch, a privately owned Swiss airline, from 50/1 to 4/1 making it the favourite to fall by the wayside in the short term. However, the company has denied any financial trouble and criticised Paddy Power for running a book on the airline industry at such a critical time.
While bookmakers around the world are free to take bets on any subject or matters which they choose, there is a feeling that by focusing upon the likes of the airline industry, and Monarch in particular at this point in time, this may be making a difficult situation worse. Despite the fact that the airline has denied it is in any financial trouble many people are wondering why the odds dropped so quickly and why over 100 people have placed money on the company going under.
There is the potential for concern about the Monarch airline to become something of a self-fulfilling prophecy because obviously creditors will be monitoring the situation closely and concerned about their own exposure. Whether or not the actions of the gambling industry can or could directly influence financial markets is open to debate, but the focus at the moment is most certainly upon Monarch.
Share this..
Related stories
Peter Mandelson advises UK and US consumers to hold steady
Peter Mandelson has today stepped into the limelight to suggest that UK and US consumers should hold a "steady nerve" as their relevant economies continue to struggle. However, when you bear in mind the inflation protected incomes and expenses of the modern-day UK politician, more and more of the UK population are growing tired of being told what to do.
Just a few months ago, with t...
Mervyn King attacks Prof Blanchflower
Governor of The Bank of England, Mervyn King, has today launched a scathing attack on former MPC member Prof Blanchflower. As we covered in one of our recent posts, Prof Blanchflower was highly critical of Mervyn King's "iron fist" mentality and in fact put himself forward as the person who spotted the UK recession first and realised how deep it could be. However, for an institution which is so se...
Read MoreUK bank shares fall further as currency suffers
Sterling has fallen further in the currency markets after a turbulent morning saw yet more falls in the UK banking sector. The FTSE was down 2% at midday and the vast majority of the fall was purely down to the banking sector. The fall in the currency, the fall in the FTSE and the fall in banking shares is a reflection of the reduced confidence in the UK economy and the UK government.
Read More
Credit card companies sneak in higher rates
Under cover of the EU payment services directive, which will come into play on the 1st November, a whole host of UK credit card companies would appear to have sneaked in a number of interest rate rises. Under the payment services directive, credit card and debit card companies have been ordered to simplify their terms and conditions and sent out very thick documents to their customers to review.
UK drops out of worlds top ten economies
In a move which is sure to be raised in parliament it has been revealed that the UK has fallen out of the top ten of the most powerful economies in the world. Slipping 3 places to 12th the UK has suffered as a consequence of the slowing economy, high consumer debt and weak public purse which together has seen a number of countries leap frog the UK in the rankings.
While many expect...