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.
Are the MPC taking inflation seriously?
Yesterday's revelation that one member of the MPC voted in favour of increasing UK base rates to 0.75% surprised some analysts although others believe the MPC may not be taking the threat of inflation seriously enough. So what impact would inflation have on the UK economy? Inflation, if left to spiral out of control, has a massive impact upon the relative spending power of the UK population. Th...Read More
UK government could learn from US authorities
Despite the fact that the UK government was the first in the world to introduce quantitative easing, the US authorities have taken this particular form of economic assistance to new levels. Such is the current dependence by the US economy on quantitative easing, and the billions upon billions of dollars being poured into the system, that the US government will need to wean the economy off this par...Read More
Budget Headlines : Income tax allowances to be reformed
Income tax allowances to be reformed - for those earning over £100,000...Read More
Housing market slows
The housing market is slowing as house price growth turned negative and buyer demand slumped in August, according to the Royal Institution of Chartered Surveyors (Rics).This is the first time house prices growth has turned negative since October 2005, with demand weakening as a result of rising interest rates and falling affordability. Surveys from other organisations, including the big mortgage l...Read More
Barclays bank ridicules UK government remuneration guidelines
Barclays Bank, or to be more precise 45 bankers from Barclays Bank, are set to ridicule the UK government's banking remuneration guidelines of the future. The 45 in question have set up a company in the Cayman Islands over which the UK government has no jurisdiction, in order to manage Barclays Bank's toxic debt. So what exactly is going on?
In a smart piece of financial wizardry, B...