UK profit warnings continue to fall
The number of profit warnings issued by UK listed companies fell to its lowest level for seven years in the second quarter of 2010. Between April and June there were only 45 profit warnings as opposed to 53 in the previous three months, but is this a sign that the UK economy is recovering?
While there is no doubt we did see a significant improvement in the UK economy in the latter part of 2009 there is also no doubt that public sector budget cuts and tax increases will take much of the momentum out of the fragile UK economic recovery. As a consequence, it is likely that the second half of 2010 will be very different to the first half and we could in fact see another bout of profit warnings being issued. This will obviously have a detrimental effect on the UK stock market, investor confidence and could ultimately impact upon liquidity in the money markets.
Even though the UK is likely to avoid a double dip recession there will certainly be challenging economic times ahead over the next decade. Many people have yet to realise the massive impact which the credit crunch and resulting recession have had not only on the UK economy but also UK government finances.
Share this..
Related stories
Hector Sants to step down as FSA chief executive
Hector Sants has revealed that he will be stepping down from his position as chief executive of the Financial Services Authority (FSA) later this year after his three-year tenure comes to an end. The former investment banker has presided over what has been the most difficult financial situation in the UK for decades and managed to retain his reputation and his cool throughout. While the rumour...
Read MoreAre European authorities fire fighting with no definitive strategy?
As we see the number of European banks hitting trouble increase day by day there is a concern in investment markets that the European authorities are just fire fighting each event as it happens and not putting in place long term strategies which will pick up the whole sector. Is this the right course of action or should they be taking a wider look at the situation?
It is very easy...
Chinese stocks hit by Greenspan comments
Chinese stocks fell by 1.5 per cent yesterday before rallying after former US Federal Reserve chairman Alan Greenspan expressed doubts about a potential "bubble" developing in the country.The Asian giant has seen dramatic increases in capital invested in its firms in the past 12 months, which in 2007 has already seen total market value grow by 50 per cent.Now analysts are beginning to voice concer...
Read MoreShareholders fight back at Punch Tavern meeting
In a sign of the times, shareholders at yesterday's meeting of Punch Tavern investors voted down the latest remuneration package for the company's directors. While there was a similar revolt last year, with 36% of investors voting against the remuneration package, this year saw a significant 55% vote against the package and hence the company has withdrawn the offer. So what is going on? A numbe...
Read MoreAre we seeing demand improving for used cars?
Car dealership Lookers has today given the car sales industry something of a pickup with news that greater demand for used cars has been experienced over the last few weeks. This, when set-aside the turmoil in the car manufacturing sector, would appear to give secondhand car sales businesses some hope that demand may well be slowly filtering back into the sector.
However, it is also...