Another day another view on the UK economy
Despite the fact that Neil Woodford, one of the U.K.'s more prominent fund managers, last week suggested that the UK could lose its AAA credit rating, many city analysts have come out with an opposite view. While there is no doubt that Neil Woodford has a history which makes him more than qualified to comment on the UK economy, there is some debate as to whether his assumptions are correct and indeed no more than just a hunch.
There is no doubt that the UK economy is under pressure, the UK budget deficit is out of control and UK national debt is at record levels, but the UK economy is enormous and is potentially on the verge of a turnaround. However, whether we see a reduction in the UK credit rating in the short term is another matter as there is no doubt that investors, both in stock markets and the money markets, are becoming more and more concerned about the lack of clarity and detail about how the government intends to tackle the budget deficit.
With people such as Neil Woodford suggesting a possible downgrading of the UK national credit rating there is a danger that we could talk ourselves into a far worse situation, at least in the short term.
Share this..
Related stories
British Airways looking for a deal with Unions
British Airways is locked in talks with the Unite union as the subject of pay reviews and redundancies comes more to the fore. Despite the fact that nearly 1000 people agreed to work up to one month a year for no pay, it seems as though British Airways is going to push for more significant cost savings. Amid a suggestion that the company is losing £3 million a day the likes of Willie Walsh, BA's...
Read MoreUK Treasury denies report of new money print
The UK Treasury has this evening been forced to deny reports that they are considering printing more money in the UK as a means of tackling the credit crunch. The suggestion is that the printing of new money would not come into play until UK interest rates hit zero and there was literally no other option left for the UK government. There is concern that this situation could occur sooner rather tha...
Read MoreCould UK unemployment hit 4 million?
A report by the Centre for Economics and Business Research (CEBR) has revealed what could become a doomsday scenario for the UK economy. The survey suggests that a combination of the depth of the worldwide recession, the UK recession and the government's handling of the situation could lead to UK unemployment topping 3.8 million!
While there is no doubt that the report is considerin...
Lloyds bank in talks to scale back asset protection plan participation
After yesterday's revelation that Lloyds bank failed a Financial Services Authority (FSA) stress-test, regarding its plans to withdraw from the UK government's asset protection scheme, directors have now put forward a scaled-down version of the scheme. It is believed that Lloyds bank directors are currently in talks with the UK Treasury regarding a possible reduction in the company's asset protect...
Read MoreBank Of England hold UK base rates
As expected, the Bank of England MPC committee has today confirmed that UK base rates will remain on hold for the sixth consecutive month. This came as no surprise to the UK market, with many expecting the move, although there was a small surprise with regards to the quantitative easing program which has been ongoing for some time.
Many had expected the Bank of England to put on hol...