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.
Confusion in Dubai
The Dubai authorities have injected a large amount of confusion into worldwide money markets after the government refused to guarantee the debts of Dubai World which many believed had a direct connection to the Dubai authorities. The company has built up a debt pile which is now standing at £36 billion and the Dubai government believes that lenders should feel part of the pain rather than the aut...Read More
Is Gordon Brown feeling the pressure?
At the World Economic Forum this weekend Gordon Brown found himself in a number of very difficult situations where he was being asked to clarify the UK situation in the eyes of the UK government against that of the International Monetary Fund (IMF). The situation was made worse by the fact that opposition leader David Cameron was also in attendance and more than happy to "stick the knife in" when...Read More
Do as I say not as I do at the FSA
The Financial Services Authority (FSA) has today hit the headlines with news of a 40% increase in staff bonuses which now stand at almost £20 million. This is at a time when there is a general consensus across UK that the regulators have failed the UK financial sector and change is needed. While those in charge of the UK regulators will suggest that extra work and extra stress has been taken on b...Read More
UK economy could take two years to recover
Despite only yesterday suggesting that the UK economy was well on the way to recovery, the Bank of England has backtracked slightly with a suggestion that pre-credit crunch levels will not be reached until 2011 at the earliest. Citing a "long and hard" recovery the Bank of England appears to be giving mixed signals to the markets which will not go down well amongst investors and analysts. So what...Read More
Bond and Da Vinci boost UK economy
British-produced films like Casino Royale and The Da Vinci Code helped to provide a £4.3 billion boost to the country's economy from the UK movie industry last year.New figures show that homegrown films' contribution to Britain's GDP in 2006 was up 39 per cent over the last two years.Casino Royale starring Daniel Craig and Tom Hanks' turn in The Da Vinci Code made almost £90 million at the UK bo...Read More