Spain suffers cut from Standard and Poor's
Credit rating agency Standard and Poor's has today reduced the credit rating on Spanish national debt from AAA to AA. This is a major blow for the Spanish economy and the Spanish government and comes amid signs that the Greece debacle is now affecting other European economies. Yesterday we saw Portugal suffer the indignity of a credit rating downgrade and experts believe more downgrades are on the way.
The ongoing problems within the Eurozone have impacted upon the euro itself which has come under significant selling pressure over the last few days. Despite the fact that only a few days ago it looked highly unlikely that any European country would default on its national debt, the chances of this happening have increased dramatically over the last 48 hours. There is also concern that the global economy could be impacted by the debt problems within Europe and we could move back towards another worldwide economic downturn.
Even though the UK stock market was fairly steady today, compared to yesterday, we did see significant falls in France, Germany and Spain and there is growing concern amongst investors. Despite the fact that the German authorities appear to have been dragging their heels regarding a solution for the Greek debt problem, it was the German government who today called for a "speeding up" of negotiations between the Greek government, the IMF and the European Union.
How will the UK economy perform in 2010?
As we move towards the final few days of 2009 all eyes are starting to move towards 2010 and the prospects for the UK economy. This is an economy which only two years ago was flying high and one of the leaders in the world but has now fallen by the wayside and is lagging countries such as Denmark. So what exactly can we expect from the UK economy in 2010? Whichever political party wins the next...Read More
Euro under pressure as unemployment rises
The Euro is today under pressure after news that unemployment in those nations who have adopted the currency rose to nearly 15.9 million. This is the equivalent of 10.1% of the population of the 16 nations involved although the likes of Spain, Ireland and Slovakia have by far and away the highest unemployment rates in the euro zone. The Spanish rate is nearly 20%! As a consequence of the growin...Read More
Could UK base rates remain unchanged until 2012?
As the threat of inflation begins to recede, with evidence that factory prices are turning downwards, many people are now looking towards UK base rates and the next increase. A number of economists believe that there is no chance of the base rate rise within 2010 and indeed a number are now looking towards 2012 and beyond before UK base rates will increase. So could UK base rates remain unchanged...Read More
UK set for deepest recession since 1940
A number of independent think tanks are suggesting that 2009 will see the sharpest fall in UK GDP since the 1940s. This reflects mounting concern that the UK recession could be longer and deeper than anyone had thought throughout 2008. There are also real concerns that we could see that a return of the credit crunch in the first quarter of 2009 with banks set to struggle and possibly need to retur...Read More
Businesses attack strike plans
It will be no surprise to hear that around two thirds of business leaders in the UK believe that strike activity in the short to medium term will severely impact upon the ability of the UK economy to recover. This is the first time that business leaders have spoken out en masse regarding strike activity as the unions continue to flex their muscles and take on the UK government. So will strike acti...Read More