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.
Breakthrough in talks regarding Jaguar Land Rover
It is been revealed that unions in the UK have given an undertaking for flexible working hours in relation to Jaguar Land Rover's Birmingham plant plans. There had been serious concerns that the plant would have been closed down by Indian owners Tata Group but at the last minute the two parties have agreed a compromise which will allow flexible working hours and "intensity" to increase during busy...Read More
UK car industry in for a tough 2010
Figures from the UK car industry show that like-for-like sales in December were up nearly 40% compared to December 2008, purely and simply because of the impending closure of the car scrappage scheme. However, the massive jump in December sales will bring to an end increased demand for UK cars which stretches back to May 2009. Prominent figures in the UK car industry believe that sales for 2010...Read More
Will the UK banking sector ever recover?
The ongoing demise of the UK banking sector, with Royal Bank of Scotland, Lloyds bank, Northern Rock and Bradford & Bingley all in some way heavily dependent on the UK government, has cast a very dark cloud over the UK economy. As we mentioned in some of our other articles there is concern within the investment industry and indeed the Standard & Poor's credit rating agency is very downbeat on the...Read More
US GDP growth surprises market
US financial markets have this afternoon moved higher after the release of US GDP figures showing an annual increase of 5.7% in the final quarter of 2009. This is the largest annual increase for six years and took many analysts by surprise after concerns were voiced about the underlying strength of the US economy. The attention has now moved back onto the US economy after a week in which Pres O...Read More
British Retail Consortium reveals disappointing figures
Growth in retail sales in the UK slowed to 0.5% during July with a number of big ticket items being hit particularly hard. This reduction in retail sales growth is a major concern to the industry at a time when the UK government has introduced major budget reductions and increased taxes across the board. Against this backdrop, something highlighted by the likes of Next and Carpetright last week, i...Read More