UK investors lose appetite for risk
The UK stock market tumbled again today as UK investors moved to the sidelines with the perceived risk to the UK economy and the UK stock market increasing. This comes at a time when investors appear to have lost their appetite for risk hence the significant shift downwards in the UK stock market over the last few days. So what is behind this renewed fear for the future?
The major concern is the state of the UK economy and how this may be impacted by events elsewhere. There are problems within the European debt market, concerns that the US economy may not be as strong as many assumed and a fear that the UK budget deficit may be a tougher task to tackle than first thought. Despite the fact that many investors believed that the worst was over for the UK economy it looks as though this ongoing period of austerity could have a significant impact on the economy in the short to medium term.
In simple terms, the UK economy looks unlikely to race ahead in the short-term with short-term pain likely to lead to long-term gain, at least that's what many investors are hoping for. How quickly the UK will recover remains to be seen.
Share this..
Related stories
Credit crunch hits F1!
Who would have thought that the high finance, money is no object world of Formula 1 would take a hit off the credit crunch. Who would have thought that the multi-billion pound team operations would struggle to make ends meet?
F1 leader Max Mosley has announced plans to slash the costs associated with the sport by putting in place cost savings of around $5 billion over the next 2 ye...
HBOS management receive alternative offer
After days of speculation it appears that finally we may be about to see some action on the HBOS and Lloyds TSB merger. Two highly respected Scottish bankers have written to the HBOS chairman and chief executive asking for them to resign and allow them to replace the leadership of the group. Sir Peter and Sir Anderson George Matheson, both former executives in the banking industry believe that the...
Read MoreInvestors question Marc Bolland's £15 million package
The Marks & Spencer board of directors is this week under pressure with news that prominent investors are questioning why the company has given a £15 million package to incoming chief executive Marc Bolland. Despite the fact that the new chief executive comes with a reputation which few others in the industry can match, a £15 million package is considered by many to be extravagant. One issue...
Read MoreNorthern Rock announces £200 million profit in first six months of 2010
Northern Rock, the former darling of the UK mortgage arena, would appear to have recovered from lows hit during the recession to report a profit of £200 million for the first six months of 2010. The company was split into two different entities by the UK government, the retail division (which reported a loss of £142 million) and the so-called "bad bank" division (which reported a profit of £349...
Read MoreHBOS management threaten nationalisation if Lloyds TSB offer lapses
In a fairly blunt rebuke of the supposed alternative offers emerging from Scotland, the management of HBOS has suggested that if the Lloyds TSB deal does not go ahead then the group may have to be fully nationalised. This was always the threat from day one as the group was running dangerously low on finance hence the reason why Lloyds TSB stepped in with the announcement of a merger.
...