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.
Tories jump Budget gun with corporate tax-cut pledge
The Conservative party has moved to steal a march on chancellor Gordon Brown's Budget later this week by pledging to cut corporation tax by 3p per £1.Shadow chancellor George Osborne says that his party's plans could save £4.5 billion.It is no coincidence that the Tories' first concrete tax policy commitment comes two days ahead of the chancellor's 11th, and probably last, Budget announcement."I...Read More
Has the UK pound risen too quickly?
The CBI has today revealed a significant falloff in export orders in the UK over the last four weeks due in the main to a recent bounce in the exchange rate of the UK pound against other leading currencies. As the UK pound fell more than 30% against the dollar many people had pinned their hopes on an eventual recovery in the UK being linked directly to the exchange rate. However, amid signs that t...Read More
Is the worst of the recession now over?
Over the last few weeks we have seen comments from the likes of Tesco and Marks & Spencer's which have contradicted each other, with Tesco suggests the recession is over and Marks & Spencer commenting upon a potential recession next year. We have seen a flurry of economic forecasts and economic figures which again conflict with each other with the end result of a consensus that the recession is ov...Read More
Goldman Sachs survey raises concerns about banking stress tests
A survey by Goldman Sachs has today made many investors sit up and rethink their strategy in the short to medium term with expectations that 10 out of the 91 European banks to be stress tested by the European Union will fail. The poll of 376 respondents took in long-term investors and hedge funds with a detailed knowledge of the European markets and the European economy. So what does this mean?...Read More
Is inflation the next challenge for the Bank of England?
The Office for National Statistics yesterday revealed that factory prices rose by 0.4% in September which is in sharp contrast to the recent fall of 0.3%. When you consider that much of the increase in factory prices was actually caused by "elements of core inflation" it will be difficult for the UK government and the Bank of England to ignore this increase. So what can the bank of England do?