100,000 British companies in financial trouble
A report by Begbies Traynor claims that upwards of 100,000 British companies are in serious financial trouble with over £58 billion of debt between them. There are also 50,000 other companies likely to be hit by UK government cutbacks which will make the situation even worse and potentially tip tens of thousands more companies over the edge. There is no doubt that beneath the surface there are many companies struggling to survive and any lurch downwards by the UK economy could have a catastrophic impact on the UK business arena.
The report by Begbies Traynor is a major blow to the UK financial arena although thankfully UK banks have grouped together to create a £1.5 billion rescue fund for small to medium-sized businesses. Whether this is too little too late remains to be seen but there is no doubt that UK companies do need increased liquidity and they need it quickly!
Inflation in the UK continues to remain stubbornly high, unemployment in the UK is creeping ever higher and the economy is under major pressure. The higher unemployment rises the more pressure this places upon the welfare state and ultimately we could see many of the budget cuts introduced by the government negated by a massive increase in benefit payments.
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
Investigation into Flyglobespan collapse
The Scottish government has today announced an investigation into the collapse of Scotland's largest airline company, Flyglobespan. The company collapsed last week after last-minute rescue talks failed and the group had no alternative but to call in the administrators. Over 500 staff lost their jobs at the company and thousands of holidaymakers were left stranded overseas, many of them unprotected...Read More
Irish banking sector in freefall
Yesterday saw a significant fall in the value of the Ireland's banking community on concerns that the short to medium term outlook is turning sour. Debt ratings agency Moody's took the red pen to the industry yesterday and reduced the ratings of all 12 banks operating in the country. This is a reflection of both the Irish economy as a whole and the Irish financial market with the Irish government...Read More
UK Economy avoids triple-dip Recession
The UK economy avoided what would have been devastating news today, as first quarter growth of 0.3pc was reported, and a triple-dip recession avoided. A recession is confirmed when the economy experiences two consecutive periods of decline, and after a final quarter of 2012 growth figure of -0.3pc, any further decline would have officially seen the economy back in recession. The growth figur...Read More
Inflation or deflation, take your choice
News that core inflation in UK fell from 2.2% to 1.8% in June has been welcomed across the City but there are still fears for the future. Reduced demand in the food sector has seen prices fall with many experts expecting core inflation could fall below 1% in due course. However, when you add back in mortgage payments inflation is actually negative at -1.6% in June against -1.1% in May.