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.
CBI believes UK base rates will rise later this year
The CBI has upgraded growth forecast for the UK economy in 2009 although there are concerns that any significant rise could prompt an increase in UK base rates. While this is inevitable at some stage, low base rates at this moment in time have the potential to assist companies and consumers in getting themselves out of significant financial trouble. If UK base rates were to rise we would then see...Read More
Retail sales up but can we believe the figures?
The Office for National Statistics (ONS) has today revealed UK retail sales increased by 0.4% in July compared to sales in June. Not only was the increase in July more than expected but it also takes the annual rise in UK retail sales to 3.3%. It is also worth remembering that June was a very strong month and the increase in July is more impressive due to this very fact.
Gordon Brown claims UK will bounce back stronger
Despite suggestions that internal UK government figures suggest the ongoing recession will be longer and harder than anybody had ever thought, Gordon Brown has come out today suggesting that the UK would become a "beacon of hope" in the global turmoil. While these are very moving and emotional words at this moment in time there is very little evidence to back up Mr. Brown's thoughts that the UK ec...Read More
MP committee looks at North sea oil exploration
In light of the Gulf of Mexico disaster a committee of MPs will review the UK government's decision to ignore calls for a moratorium on new drilling exploration in the North sea. While there is no doubt that lessons need to be learned from the Gulf of Mexico problem, which has seen the BP share price collapse, many believe that safety measures in place in the North sea are more than adequate for t...Read More