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.
Is the UK recovery losing momentum?
The Bank of England next month has a very difficult decision to make regarding the UK economy amid signs that inflation could be coming back to life while the UK property market would appear to be stalling. Today's news that retail sales growth in the UK have now slowed to just 0.5% in the month of July is also a further hammer blow to the Bank of England and the UK government as they bid to injec...Read More
Why should the Bank of England focus on specific sectors of economy?
Slowly but surely it would appear that the Bank of England is on the verge of introducing various fiscal stimulus policies in the short-term. Earlier this week we saw a suggestion that the credit costs associated with specific areas of the UK economy may well be focused upon in the coming days and weeks although why would the Bank of England prefer to focus on specific areas as opposed to the over...Read More
Can anybody really tame the bankers?
As the UK banking industry continues to ride roughshod over the rest of the UK economy, government and regulators, there are concerns that nobody is able to rein in the power of this growing sector. Despite the fact that the financial sector led the worldwide and the UK economy into a downward spiral, it is the first sector to emerge from the doldrums leaving many sectors toiling in their wake.
Can Inflation Really Get Any Worse?
News that inflation in the UK jumped sharply last month has prompted a wave of fear and concern amongst many of the population but some are finding it difficult to understand how it can rise any further and the long term implications. Can it really get any worse?
The immediate threat is that inflation will rise to in excess of 5% later this year before falling back next year. Howe...
Toyota Motor registers first loss since 1941
Japanese car manufacturer Toyota Motor has this evening announced its first loss since 1941 amid the carnage of the car manufacturing industry. This is the latest setback for an industry which has literally falling to its knees over the last few months with thousands and thousands of cars waiting to be delivered to forecourts never mind being sold.
The news from Toyota Motor is expe...