FTSE 100 falls as Bank of England issues warning
The UK stock market fell today as the Bank of England issued a cautious note on the UK economy and investors took fright. The FTSE 100 index was down 2.5% at the close amid concerns that the UK economy could tip into a recession towards the end of 2010. The situation was made worse when the Federal Reserve in America also issued a cautious statement on the US economy and confirmed it was looking to acquire U.S. Treasury bonds to pump liquidity back into the US economy.
Over the last two weeks there has been a significant shift in sentiment amongst international investors and today's announcement by the Bank of England and the Federal Reserve in America has changed the outlook completely. At the turn of 2010 there were high hopes that the US and the UK economies were moving towards a sustainable recovery although these hopes have faded somewhat over the last week.
It will be interesting to see how investors react to the disappointing news from the Bank of England and the US over the next few days and indeed whether we are seeing the creation of a downward trend in international investment markets.
Share this..
Related stories
Could a Bernard Madoff fraud happen in the UK?
As the Madoff situation continues to roll on there is concern that a similar type of fraud could happen in the UK market. Weaknesses in the regulatory environment have been highlighted since the banking sector began to crumble and many people believe there are a number of potential frauds and criminal activities waiting to be discovered. Only recently we saw a massive mortgage fraud which resulted...
Read MorePrimark mania makes sweet profit for ABF
Associated British Foods (ABF) has revealed boosted half-year profits, largely helped by sales of sugar and Primark clothing.Pre-tax profit for the firm was up by five per cent to £268 million, a figure ABF notes was significantly contributed to by the rapid rollout of new Primark stores â€" the budget fashion shops contributed a massive £200 million of additional sales.In the past six...
Read MoreBarack Obama looking to set up new US financial regulator
Barack Obama has today confirmed plans for a new US watchdog to keep an eye on the financial services industry in the future. This comes at a very tricky time for the US president with Timothy Geithner (Treasury Secretary) summoned to appear before Congress in relation to substantial bonuses paid to AIG employs over the last few months.
In a situation which bizarrely reflects the UK...
UK government loads the gun for the FSA to fire
The UK government today stands accused of instigating various regulatory changes and then taking a step back at the first sign of potential trouble. The latest move revolves round the ongoing change in the regulatory powers of the FSA (Financial Services Authority) and the ability to dictate the terms of various bank bonuses in the UK. This is a move which was begun by the UK government and effect...
Read MoreFailed company accused of financial mismanagement
A 2 kg ruby named the "Gem of Tanzania" is this evening at the centre of a bizarre financial mystery. The gem had been used to underpin the finances of Wrekin Construction before the company went into administration in March 2009 with the loss of 500 jobs. However, while the gem was valued at £11 million in the company's report and accounts, Ernst & Young, the company's administrator, has put the...
Read More