Is the HSBC $5 billion fund enough?
The new five billion-dollar fund which HSBC has put aside for the small-business sector has been applauded by many in the UK and around the world but there are concerns that it is too little too late. While Small businesses in the UK are suffering, this situation is being replicated around the world where small businesses are being squeezed through lack of liquidity and weakened balance sheets. So far it appears that many UK banks in particular have yet to take up additional funding made available from the EU which had been earmarked especially for small businesses.
Confidence in the worldwide small-business sector has never been more subdued and this is leading to more and more companies going under. Finances are weak, business is down and unemployment is starting to increase which has created something of a doomsday scenario for many small companies. The government has attempted to step into the breach but so far an agreement with the UK banks, aside from HSBC, does not appear to have been honoured and there are concerns about the short to medium term outlook.
Many people do not appreciate how important the small-business sector is to the UK economy and the longer the recession drags on the more companies will suffer.
Share this..
Related stories
UK train network in disarray
As we have reported over the last few weeks, a number of UK train franchises are under significant financial pressure as the economic downturn continues to hit both costs and passenger numbers. However, National Express has attracted fury from consumer groups after announcing the introduction of reservation charges on its East Coast and East Anglia franchise. Those looking to reserve a single tick...
Read MoreUK base rates held at 0.5%
It has been revealed in the last hour that UK base rates are to be maintained at 0.5% with the likelihood that we have reached the bottom of the interest rate cycle. Despite rumours of unrest within the MPC it appears that the vast majority are of the belief that quantitative easing is the way forward in the short to medium term and the benefits of interest-rate reductions have been exhausted.
Here we go again, British jobs for British workers!
As we approach the next general election (a coincidence?) Alan Johnson, the Home Secretary, will today announce plans for "British jobs for British workers". This is a rehash of Gordon Brown's claim from two years ago which sensationally backfired and led to significant friction within the Labour Party and the UK employment market. So is this particular strategy plausible?
In realit...
UK lending growth slows
Growth in the total amount of money owed by Britons slowed at the beginning of 2007, official data has revealed.According to the Bank of England, the increase in net lending to individuals was £10.6 billion in January, which compares with the £11.3 billion experienced in December.These figures brought the 12-month growth rate down 0.1 percentage points to 10.5 per cent.Similarly, the annualised...
Read MoreIs Greece a sign of problems to come?
A 0.9% fall in the FTSE All World Index yesterday brings the four day fall to 7% amid concerns that the Greek debt problem is infecting other markets. Aside from the fact that investors are now shunning potentially high-risk debt bonds there has been renewed interest in gold, which is seen by many as a safe haven. As a consequence, we are likely see further downward pressure on investment markets...
Read More