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.
Retail Sales In July Expected To Fall By 0.3%
News that the average forecast for July retails sales is a decrease of 0.3% has been met with concern by many in the investment markets. Falling retail sales do not bode well for the future of the economy and while the growth rate for retails sales over the year is still 1.7% it looks set to move significantly lower in the weeks and months to come. Further falls, which are now discounted by many...Read More
Is £20 billion enough to save the UK economy?
The Chancellor Alistair Darling has tonight increased concern that the UK economy is heading for a serious recession after airing his views that the £20 billion fiscal injection of last week may not be enough. This is a serious development as the government had apparently placed their last hope on the £20 billion package as a way to refloat and rebase the UK country.
If after jus...
Alistair Darling suggests rate cuts are not enough to refloat UK economy
While Alistair Darling has welcomed the 1% reduction in UK base rates by the Bank of England, he has also reiterated what many people now believe, that interest-rate reductions alone will not pull the UK out of recession. He has called for further increases in fiscal stimulus and as he suggested earlier in the week, the recent £20 billion package may well need to be increased and further revoluti...Read More
1 in 5 UK employees is paid below living wage
A study by the Resolution Foundation has uncovered the fact that one in every five UK employees is being paid below the living wage. A living wage is defined as one that is high enough to allow you to maintain the normal standard of living. Those paid below the living wage would struggle to do this and as such may find themselves living in poverty. The issue however is more evident in women...Read More
Labour Party attempts to split coalition
Ed Miliband, a candidate to be the next Labour leader, has today attempted to separate the coalition Conservative and Liberal Democrat government with claims that the Labour Party never made a promise regarding the alternative voting system. It was assumed that during negotiations between the Conservatives and the Liberal Democrats, Labour and Liberal Democrats and discussions with party members t...Read More