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Showing posts with label The Guardian. Show all posts
Showing posts with label The Guardian. Show all posts
Sunday, 20 June 2010
Saturday, 15 May 2010
VAT rise looms as coalition deal adds estimated £10bn to debt
King of Capital: Sandy Weill and the Making of Citigroup
Plans raise fears of blow to already fragile consumer confidence and more upward pressure on inflation
There were warnings tonight that the government will be forced to hit consumers with a VAT
hike to 20% if it is to reduce the country's gaping budget deficit and retain the confidence of jittery financial markets.
Such a rise could cost every household in Britain £425, but the government may have little choice given the state of the public finances, economists warned. The coalition's plans outlined so far on the deficit quickly came under City scrutiny, with one institution warning that in their current state they would actually worsen the country's budget position.
Credit Suisse
said the measures announced would add close to £10bn per year to the deficit, contrasting with the incoming government's emphasis on the need for "a significantly accelerated reduction".
The easiest solution would be a VAT rise, Credit Suisse added, echoing other economists but raising fears of a blow to already fragile consumer confidence and more upward pressure on inflation.
Plans raise fears of blow to already fragile consumer confidence and more upward pressure on inflation There were warnings tonight that the government will be forced to hit consumers with a VAT
hike to 20% if it is to reduce the country's gaping budget deficit and retain the confidence of jittery financial markets.Such a rise could cost every household in Britain £425, but the government may have little choice given the state of the public finances, economists warned. The coalition's plans outlined so far on the deficit quickly came under City scrutiny, with one institution warning that in their current state they would actually worsen the country's budget position.
Credit Suisse
said the measures announced would add close to £10bn per year to the deficit, contrasting with the incoming government's emphasis on the need for "a significantly accelerated reduction".The easiest solution would be a VAT rise, Credit Suisse added, echoing other economists but raising fears of a blow to already fragile consumer confidence and more upward pressure on inflation.
Wednesday, 12 May 2010
Saturday, 18 July 2009
UK economy shrinking at fastest rate in more than 50 years
Downward revisions to official statistics show output fell 2.4% in the first three months of the year and the recession started three months earlier than thought
The recession facing Britain is even deeper than had been thought and started more than a year ago, it was revealed today.
National income fell in the first quarter of this year by 2.4%, the biggest drop since 1958, as the Office for National Statistics revised its initial estimate of 1.9%.
The figures are much worse than expected. Extended to the whole year, the drop in output in the January to March period is now equal to 4.9% – the worst since records began in 1948.
"We hope the recovery comes as soon as possible but sadly we now know this recession has been longer and deeper than we had thought," said shadow chancellor George Osborne.
"This also means that in the future unemployment will be higher and Labour's debt crisis will be even worse."
Although GDP fell 2.4% in the third quarter of 1979 and first quarter of 1974, statisticians said these were rounded from 2.36% or 2.37%. The figure for this year was exactly 2.4%.
The revision is one of the biggest ever made by the ONS and it said the reasons were changes to its estimate of the construction and services sectors.
The ONS also revised down its figure for the second quarter of last year to -0.1% from zero, meaning the recession started earlier than previously thought. And the fourth quarter of 2008 figure was revised down to a fall of 1.8%.
"The recession, which now begins in the second quarter of 2008 rather than the third, is now thought to be quite a bit deeper than previously thought, and is looking ominously like the early 1980s vintage," said Danny Gabay of Fathom Consulting.
Critics of the Bank of England who called for big interest rate cuts in the first half of last year, will feel justified by the data, since the Bank's monetary policy committee argued into last autumn that there was little likelihood of a recession occurring and delayed rate cuts until October. In fact, the economy had entered one last spring.
Separately, the Trades Union Congress said that while there were signs of "green shoots" in the economy, this was more to do with an easing of the pace of the fall in output rather than that a big recovery was under way.
"This recession is already worse than the 1990s one and is likely to be worse than that of the 1980s," said Richard Excel, TUC labour market expert. "It has been very severe and we are probably only half way through. It will be quite some time until employment and growth return to pre-recession levels."
Paul Gregg, labour market expert from Bristol University, noted that unemployment had started rising earlier in this recession than in previous ones and was "encouraged" that monthly rises in the claimant count appeared to be slowing down.
sourced from The Guardian
The recession facing Britain is even deeper than had been thought and started more than a year ago, it was revealed today.
National income fell in the first quarter of this year by 2.4%, the biggest drop since 1958, as the Office for National Statistics revised its initial estimate of 1.9%.
The figures are much worse than expected. Extended to the whole year, the drop in output in the January to March period is now equal to 4.9% – the worst since records began in 1948.
"We hope the recovery comes as soon as possible but sadly we now know this recession has been longer and deeper than we had thought," said shadow chancellor George Osborne.
"This also means that in the future unemployment will be higher and Labour's debt crisis will be even worse."
Although GDP fell 2.4% in the third quarter of 1979 and first quarter of 1974, statisticians said these were rounded from 2.36% or 2.37%. The figure for this year was exactly 2.4%.
The revision is one of the biggest ever made by the ONS and it said the reasons were changes to its estimate of the construction and services sectors.
The ONS also revised down its figure for the second quarter of last year to -0.1% from zero, meaning the recession started earlier than previously thought. And the fourth quarter of 2008 figure was revised down to a fall of 1.8%.
"The recession, which now begins in the second quarter of 2008 rather than the third, is now thought to be quite a bit deeper than previously thought, and is looking ominously like the early 1980s vintage," said Danny Gabay of Fathom Consulting.
Critics of the Bank of England who called for big interest rate cuts in the first half of last year, will feel justified by the data, since the Bank's monetary policy committee argued into last autumn that there was little likelihood of a recession occurring and delayed rate cuts until October. In fact, the economy had entered one last spring.
Separately, the Trades Union Congress said that while there were signs of "green shoots" in the economy, this was more to do with an easing of the pace of the fall in output rather than that a big recovery was under way.
"This recession is already worse than the 1990s one and is likely to be worse than that of the 1980s," said Richard Excel, TUC labour market expert. "It has been very severe and we are probably only half way through. It will be quite some time until employment and growth return to pre-recession levels."
Paul Gregg, labour market expert from Bristol University, noted that unemployment had started rising earlier in this recession than in previous ones and was "encouraged" that monthly rises in the claimant count appeared to be slowing down.
sourced from The Guardian
UK economy shrinking at fastest rate in more than 50 years
Downward revisions to official statistics show output fell 2.4% in the first three months of the year and the recession started three months earlier than thought
The recession facing Britain is even deeper than had been thought and started more than a year ago, it was revealed today.
National income fell in the first quarter of this year by 2.4%, the biggest drop since 1958, as the Office for National Statistics revised its initial estimate of 1.9%.
The figures are much worse than expected. Extended to the whole year, the drop in output in the January to March period is now equal to 4.9% – the worst since records began in 1948.
"We hope the recovery comes as soon as possible but sadly we now know this recession has been longer and deeper than we had thought," said shadow chancellor George Osborne.
"This also means that in the future unemployment will be higher and Labour's debt crisis will be even worse."
Although GDP fell 2.4% in the third quarter of 1979 and first quarter of 1974, statisticians said these were rounded from 2.36% or 2.37%. The figure for this year was exactly 2.4%.
The revision is one of the biggest ever made by the ONS and it said the reasons were changes to its estimate of the construction and services sectors.
The ONS also revised down its figure for the second quarter of last year to -0.1% from zero, meaning the recession started earlier than previously thought. And the fourth quarter of 2008 figure was revised down to a fall of 1.8%.
"The recession, which now begins in the second quarter of 2008 rather than the third, is now thought to be quite a bit deeper than previously thought, and is looking ominously like the early 1980s vintage," said Danny Gabay of Fathom Consulting.
Critics of the Bank of England who called for big interest rate cuts in the first half of last year, will feel justified by the data, since the Bank's monetary policy committee argued into last autumn that there was little likelihood of a recession occurring and delayed rate cuts until October. In fact, the economy had entered one last spring.
Separately, the Trades Union Congress said that while there were signs of "green shoots" in the economy, this was more to do with an easing of the pace of the fall in output rather than that a big recovery was under way.
"This recession is already worse than the 1990s one and is likely to be worse than that of the 1980s," said Richard Excel, TUC labour market expert. "It has been very severe and we are probably only half way through. It will be quite some time until employment and growth return to pre-recession levels."
Paul Gregg, labour market expert from Bristol University, noted that unemployment had started rising earlier in this recession than in previous ones and was "encouraged" that monthly rises in the claimant count appeared to be slowing down.
sourced from The Guardian
The recession facing Britain is even deeper than had been thought and started more than a year ago, it was revealed today.
National income fell in the first quarter of this year by 2.4%, the biggest drop since 1958, as the Office for National Statistics revised its initial estimate of 1.9%.
The figures are much worse than expected. Extended to the whole year, the drop in output in the January to March period is now equal to 4.9% – the worst since records began in 1948.
"We hope the recovery comes as soon as possible but sadly we now know this recession has been longer and deeper than we had thought," said shadow chancellor George Osborne.
"This also means that in the future unemployment will be higher and Labour's debt crisis will be even worse."
Although GDP fell 2.4% in the third quarter of 1979 and first quarter of 1974, statisticians said these were rounded from 2.36% or 2.37%. The figure for this year was exactly 2.4%.
The revision is one of the biggest ever made by the ONS and it said the reasons were changes to its estimate of the construction and services sectors.
The ONS also revised down its figure for the second quarter of last year to -0.1% from zero, meaning the recession started earlier than previously thought. And the fourth quarter of 2008 figure was revised down to a fall of 1.8%.
"The recession, which now begins in the second quarter of 2008 rather than the third, is now thought to be quite a bit deeper than previously thought, and is looking ominously like the early 1980s vintage," said Danny Gabay of Fathom Consulting.
Critics of the Bank of England who called for big interest rate cuts in the first half of last year, will feel justified by the data, since the Bank's monetary policy committee argued into last autumn that there was little likelihood of a recession occurring and delayed rate cuts until October. In fact, the economy had entered one last spring.
Separately, the Trades Union Congress said that while there were signs of "green shoots" in the economy, this was more to do with an easing of the pace of the fall in output rather than that a big recovery was under way.
"This recession is already worse than the 1990s one and is likely to be worse than that of the 1980s," said Richard Excel, TUC labour market expert. "It has been very severe and we are probably only half way through. It will be quite some time until employment and growth return to pre-recession levels."
Paul Gregg, labour market expert from Bristol University, noted that unemployment had started rising earlier in this recession than in previous ones and was "encouraged" that monthly rises in the claimant count appeared to be slowing down.
sourced from The Guardian
Sunday, 7 June 2009
NEW blog in development
[caption id="attachment_571" align="aligncenter" width="310" caption="allaboutgrub"]
[/caption]
- this blog is all about food, ingredients and where to buy good quality food from - add a marker to my allaboutgrub map to tell others about great places to eat out or places to buy great food from -
[/caption]Hi all, I have been developing a new blog please come and visit it
allaboutgrub.wordpress.com
- this blog is all about food, ingredients and where to buy good quality food from - add a marker to my allaboutgrub map to tell others about great places to eat out or places to buy great food from -
"go on share your food experiences with others"
NEW blog in development
[caption id="attachment_571" align="aligncenter" width="310" caption="allaboutgrub"][/caption]
- this blog is all about food, ingredients and where to buy good quality food from - add a marker to my allaboutgrub map to tell others about great places to eat out or places to buy great food from -
[/caption]Hi all, I have been developing a new blog please come and visit it
allaboutgrub.wordpress.com
- this blog is all about food, ingredients and where to buy good quality food from - add a marker to my allaboutgrub map to tell others about great places to eat out or places to buy great food from -
"go on share your food experiences with others"
Saturday, 7 March 2009
Recession
rom recession in more than a decade and a half. One yardstick is at least two quarters of negative economic growth - and Britain has not had even one three-month period of falling output since 1992.
This unbroken record has allowed Gordon Brown to boast that the economy is enjoying its longest spell of sustained growth since the dawn of the Industrial Revolution in the 18th century, although reliable quarterly data has only been available for around half a century.
Some economists believe this definition of recession is flawed, since an economy would not be in recession if it contracted by 5% in the first quarter, expanded by 0.1% in each of the following two quarters and then contracted again by 5% in the fourth quarter.
It would, however, be deemed to be in recession if it grew by 5% in each of the first and fourth quarters but contracted by 0.1% in each of the second and third quarters. An alternative - and tougher definition - is a full calendar year of negative output.
Given the UK economy has grown on average by 2.5% over many decades, it is rare for gross domestic product (GDP) to fall on an annual basis. There have been only five such years since the end of the second world war: 1974, 1975, 1980, 1981 and 1991.
The United States has its own method of assessing recession, with the National Bureau of Economic Research's business cycle-dating committee making a judgment.
The NBER defines recession as "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production and wholesale-retail sales". It has not given a definitive ruling on whether the United States is technically in recession now, but analysts believe that it will give its verdict soon.
sourced from The Guardian
This unbroken record has allowed Gordon Brown to boast that the economy is enjoying its longest spell of sustained growth since the dawn of the Industrial Revolution in the 18th century, although reliable quarterly data has only been available for around half a century.
Some economists believe this definition of recession is flawed, since an economy would not be in recession if it contracted by 5% in the first quarter, expanded by 0.1% in each of the following two quarters and then contracted again by 5% in the fourth quarter.
It would, however, be deemed to be in recession if it grew by 5% in each of the first and fourth quarters but contracted by 0.1% in each of the second and third quarters. An alternative - and tougher definition - is a full calendar year of negative output.
Given the UK economy has grown on average by 2.5% over many decades, it is rare for gross domestic product (GDP) to fall on an annual basis. There have been only five such years since the end of the second world war: 1974, 1975, 1980, 1981 and 1991.
The United States has its own method of assessing recession, with the National Bureau of Economic Research's business cycle-dating committee making a judgment.
The NBER defines recession as "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production and wholesale-retail sales". It has not given a definitive ruling on whether the United States is technically in recession now, but analysts believe that it will give its verdict soon.
sourced from The Guardian
Recession
rom recession in more than a decade and a half. One yardstick is at least two quarters of negative economic growth - and Britain has not had even one three-month period of falling output since 1992.
This unbroken record has allowed Gordon Brown to boast that the economy is enjoying its longest spell of sustained growth since the dawn of the Industrial Revolution in the 18th century, although reliable quarterly data has only been available for around half a century.
Some economists believe this definition of recession is flawed, since an economy would not be in recession if it contracted by 5% in the first quarter, expanded by 0.1% in each of the following two quarters and then contracted again by 5% in the fourth quarter.
It would, however, be deemed to be in recession if it grew by 5% in each of the first and fourth quarters but contracted by 0.1% in each of the second and third quarters. An alternative - and tougher definition - is a full calendar year of negative output.
Given the UK economy has grown on average by 2.5% over many decades, it is rare for gross domestic product (GDP) to fall on an annual basis. There have been only five such years since the end of the second world war: 1974, 1975, 1980, 1981 and 1991.
The United States has its own method of assessing recession, with the National Bureau of Economic Research's business cycle-dating committee making a judgment.
The NBER defines recession as "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production and wholesale-retail sales". It has not given a definitive ruling on whether the United States is technically in recession now, but analysts believe that it will give its verdict soon.
sourced from The Guardian
This unbroken record has allowed Gordon Brown to boast that the economy is enjoying its longest spell of sustained growth since the dawn of the Industrial Revolution in the 18th century, although reliable quarterly data has only been available for around half a century.
Some economists believe this definition of recession is flawed, since an economy would not be in recession if it contracted by 5% in the first quarter, expanded by 0.1% in each of the following two quarters and then contracted again by 5% in the fourth quarter.
It would, however, be deemed to be in recession if it grew by 5% in each of the first and fourth quarters but contracted by 0.1% in each of the second and third quarters. An alternative - and tougher definition - is a full calendar year of negative output.
Given the UK economy has grown on average by 2.5% over many decades, it is rare for gross domestic product (GDP) to fall on an annual basis. There have been only five such years since the end of the second world war: 1974, 1975, 1980, 1981 and 1991.
The United States has its own method of assessing recession, with the National Bureau of Economic Research's business cycle-dating committee making a judgment.
The NBER defines recession as "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production and wholesale-retail sales". It has not given a definitive ruling on whether the United States is technically in recession now, but analysts believe that it will give its verdict soon.
sourced from The Guardian
Sunday, 15 February 2009
US House passes Obama's economic stimulus bill
House votes 246-183 to pass Obama $787bn (£547bn) plan to resuscitate the economy
The US House of Representatives has passed a $787bn (£547bn) plan to resuscitate the economy, handing President Barack Obama a big victory.
The measure passed 246-183, with no Republican votes. It will now go to the Senate, where a vote is expected later today.
The eight-inch-thick stimulus bill combines tax cuts for individuals and businesses with half a trillion dollars in government spending for infrastructure, health care and help for cash-starved state governments. Older Americans would get a $250 bonus social security check.
Seven Democrats voted against the bill.
Obama claims that the plan will save or create 3.5m jobs. But Republicans said it will not work because it has too little in tax cuts and spreads too much money around to everyday projects like computer upgrades for federal agencies.
Sourced from The Guardian
The US House of Representatives has passed a $787bn (£547bn) plan to resuscitate the economy, handing President Barack Obama a big victory.
The measure passed 246-183, with no Republican votes. It will now go to the Senate, where a vote is expected later today.
The eight-inch-thick stimulus bill combines tax cuts for individuals and businesses with half a trillion dollars in government spending for infrastructure, health care and help for cash-starved state governments. Older Americans would get a $250 bonus social security check.
Seven Democrats voted against the bill.
Obama claims that the plan will save or create 3.5m jobs. But Republicans said it will not work because it has too little in tax cuts and spreads too much money around to everyday projects like computer upgrades for federal agencies.
Sourced from The Guardian
Brown under siege as Congress caps bankers' bonuses
A dramatic vote on Capitol Hill is set to bring major change to Wall Street's risk culture as cash incentives for executives, brokers and traders are limited to a third of their salaries. Gaby Hinsliff, Zoe Wood and Paul Harris report on the implications for Britain.
Gordon Brown was under rising pressure to clamp down on the City's bonus culture last night after the US Congress agreed to drastic curbs capping senior bankers' bonuses at a third of their salary.
The measures, which are expected to be signed into law by President Barack Obama (Barack Obama page on the Guardin website) this week, would apply to dozens of staff at American banks bailed out by the taxpayer and could cost Wall Street's wealthiest millions. Cash bonuses would be banned in favour of long-term share options, with the restrictions extending beyond a handful of top executives to senior brokers and traders.
read full article from The Gardian
Gordon Brown was under rising pressure to clamp down on the City's bonus culture last night after the US Congress agreed to drastic curbs capping senior bankers' bonuses at a third of their salary.
The measures, which are expected to be signed into law by President Barack Obama (Barack Obama page on the Guardin website) this week, would apply to dozens of staff at American banks bailed out by the taxpayer and could cost Wall Street's wealthiest millions. Cash bonuses would be banned in favour of long-term share options, with the restrictions extending beyond a handful of top executives to senior brokers and traders.
read full article from The Gardian
Brown under siege as Congress caps bankers' bonuses
A dramatic vote on Capitol Hill is set to bring major change to Wall Street's risk culture as cash incentives for executives, brokers and traders are limited to a third of their salaries. Gaby Hinsliff, Zoe Wood and Paul Harris report on the implications for Britain.
Gordon Brown was under rising pressure to clamp down on the City's bonus culture last night after the US Congress agreed to drastic curbs capping senior bankers' bonuses at a third of their salary.
The measures, which are expected to be signed into law by President Barack Obama (Barack Obama page on the Guardin website) this week, would apply to dozens of staff at American banks bailed out by the taxpayer and could cost Wall Street's wealthiest millions. Cash bonuses would be banned in favour of long-term share options, with the restrictions extending beyond a handful of top executives to senior brokers and traders.
read full article from The Gardian
Gordon Brown was under rising pressure to clamp down on the City's bonus culture last night after the US Congress agreed to drastic curbs capping senior bankers' bonuses at a third of their salary.
The measures, which are expected to be signed into law by President Barack Obama (Barack Obama page on the Guardin website) this week, would apply to dozens of staff at American banks bailed out by the taxpayer and could cost Wall Street's wealthiest millions. Cash bonuses would be banned in favour of long-term share options, with the restrictions extending beyond a handful of top executives to senior brokers and traders.
read full article from The Gardian
Monday, 26 January 2009
Global recession claims 67,000 jobs in a day
The depth of the global recession was glimpsed today when almost 80,000 jobs were lost or put under threat in the UK, Europe and US, making it one of the bleakest days in recent memory.
Household names, including electronics retailer Philips, construction equipment maker Caterpillar and drug group Pfizer announced thousands of job losses, with many posts expected to be lost in the UK. Steel company Corus, for instance, is axing 2,500 British workers as it dumps 3,500 worldwide.
Even upper-crust London retailer Fortnum & Mason, which can trace its roots back to 1705, is suffering. It emerged yesterday that the Piccadilly-based department store is looking to cut about 100 of its 530 staff as shoppers seek out cheaper alternatives to products such as its £500 picnic hampers stuffed with champagne, vintage marmalade and smoked salmon.
The scale of the challenge faced by world leaders as they grapple with the worst economic downturn since the second world war was underlined yesterday as Gordon Brown issued a stark warning that the global economy will be undermined unless countries work together to tackle the crisis. The prime minister said the world needed to "ensure that we do not experience a new form of financial protectionism, of mercantilism, of retreat into domestic financial markets".
In the US, where General Motors cut 2,000 jobs, President Barack Obama warned it was imperative that Congress pass his $825bn (£590bn) package of spending and tax cuts as soon as possible. "We cannot afford distractions," he said. "We cannot afford delays in getting legislation to boost the economy through Congress."
New research from the Institute of Directors showed British business leaders are not only pessimistic about their companies' prospects but have recently seen a marked deterioration in performance.
"In previous IoD surveys, companies were saying it's going to be hell out there in the future but we're not doing too badly at present. Now they're saying the problem is much closer to home," said the IoD chief economist and director of policy, Graeme Leach."We're a long way into the financial crisis but the economic crisis is only just beginning."
Managers across the UK, meanwhile, have accepted their own redundancy as "inevitable", according to the Chartered Management Institute (CMI), which has examined recent calls to its helpline. "Quite clearly, any suggestion that there is already light at the end of the tunnel is misplaced," said Ruth Spellman, chief executive of the CMI.
The job losses announced yesterday fell mainly across industry. Europe's largest consumer electronics company Philips is shedding 6,000 jobs after announcing its first loss for half a decade. US mobile phone company Spring Nextel is axing 8,000 and Pfizer is shedding 19,000.
But the biggest losses announced yesterday were from Caterpillar. The Illinois-based manufacturer of heavy-duty earth-moving equipment is cutting almost 20% of its workforce – or 20,000 people. The news has raised fears for the company's 10,000 employees in the UK, which is Caterpillar's largest operation outside the US, and Ireland. It has factories dotted across the UK from Teesside, Leicester and Peterborough to Shrewsbury and Slough. In Ireland its electricity generator business FG Wilson is Europe's largest assembler of generators.
sourced from The Guardian
Household names, including electronics retailer Philips, construction equipment maker Caterpillar and drug group Pfizer announced thousands of job losses, with many posts expected to be lost in the UK. Steel company Corus, for instance, is axing 2,500 British workers as it dumps 3,500 worldwide.
Even upper-crust London retailer Fortnum & Mason, which can trace its roots back to 1705, is suffering. It emerged yesterday that the Piccadilly-based department store is looking to cut about 100 of its 530 staff as shoppers seek out cheaper alternatives to products such as its £500 picnic hampers stuffed with champagne, vintage marmalade and smoked salmon.
The scale of the challenge faced by world leaders as they grapple with the worst economic downturn since the second world war was underlined yesterday as Gordon Brown issued a stark warning that the global economy will be undermined unless countries work together to tackle the crisis. The prime minister said the world needed to "ensure that we do not experience a new form of financial protectionism, of mercantilism, of retreat into domestic financial markets".
In the US, where General Motors cut 2,000 jobs, President Barack Obama warned it was imperative that Congress pass his $825bn (£590bn) package of spending and tax cuts as soon as possible. "We cannot afford distractions," he said. "We cannot afford delays in getting legislation to boost the economy through Congress."
New research from the Institute of Directors showed British business leaders are not only pessimistic about their companies' prospects but have recently seen a marked deterioration in performance.
"In previous IoD surveys, companies were saying it's going to be hell out there in the future but we're not doing too badly at present. Now they're saying the problem is much closer to home," said the IoD chief economist and director of policy, Graeme Leach."We're a long way into the financial crisis but the economic crisis is only just beginning."
Managers across the UK, meanwhile, have accepted their own redundancy as "inevitable", according to the Chartered Management Institute (CMI), which has examined recent calls to its helpline. "Quite clearly, any suggestion that there is already light at the end of the tunnel is misplaced," said Ruth Spellman, chief executive of the CMI.
The job losses announced yesterday fell mainly across industry. Europe's largest consumer electronics company Philips is shedding 6,000 jobs after announcing its first loss for half a decade. US mobile phone company Spring Nextel is axing 8,000 and Pfizer is shedding 19,000.
But the biggest losses announced yesterday were from Caterpillar. The Illinois-based manufacturer of heavy-duty earth-moving equipment is cutting almost 20% of its workforce – or 20,000 people. The news has raised fears for the company's 10,000 employees in the UK, which is Caterpillar's largest operation outside the US, and Ireland. It has factories dotted across the UK from Teesside, Leicester and Peterborough to Shrewsbury and Slough. In Ireland its electricity generator business FG Wilson is Europe's largest assembler of generators.
sourced from The Guardian
Global recession claims 67,000 jobs in a day
The depth of the global recession was glimpsed today when almost 80,000 jobs were lost or put under threat in the UK, Europe and US, making it one of the bleakest days in recent memory.
Household names, including electronics retailer Philips, construction equipment maker Caterpillar and drug group Pfizer announced thousands of job losses, with many posts expected to be lost in the UK. Steel company Corus, for instance, is axing 2,500 British workers as it dumps 3,500 worldwide.
Even upper-crust London retailer Fortnum & Mason, which can trace its roots back to 1705, is suffering. It emerged yesterday that the Piccadilly-based department store is looking to cut about 100 of its 530 staff as shoppers seek out cheaper alternatives to products such as its £500 picnic hampers stuffed with champagne, vintage marmalade and smoked salmon.
The scale of the challenge faced by world leaders as they grapple with the worst economic downturn since the second world war was underlined yesterday as Gordon Brown issued a stark warning that the global economy will be undermined unless countries work together to tackle the crisis. The prime minister said the world needed to "ensure that we do not experience a new form of financial protectionism, of mercantilism, of retreat into domestic financial markets".
In the US, where General Motors cut 2,000 jobs, President Barack Obama warned it was imperative that Congress pass his $825bn (£590bn) package of spending and tax cuts as soon as possible. "We cannot afford distractions," he said. "We cannot afford delays in getting legislation to boost the economy through Congress."
New research from the Institute of Directors showed British business leaders are not only pessimistic about their companies' prospects but have recently seen a marked deterioration in performance.
"In previous IoD surveys, companies were saying it's going to be hell out there in the future but we're not doing too badly at present. Now they're saying the problem is much closer to home," said the IoD chief economist and director of policy, Graeme Leach."We're a long way into the financial crisis but the economic crisis is only just beginning."
Managers across the UK, meanwhile, have accepted their own redundancy as "inevitable", according to the Chartered Management Institute (CMI), which has examined recent calls to its helpline. "Quite clearly, any suggestion that there is already light at the end of the tunnel is misplaced," said Ruth Spellman, chief executive of the CMI.
The job losses announced yesterday fell mainly across industry. Europe's largest consumer electronics company Philips is shedding 6,000 jobs after announcing its first loss for half a decade. US mobile phone company Spring Nextel is axing 8,000 and Pfizer is shedding 19,000.
But the biggest losses announced yesterday were from Caterpillar. The Illinois-based manufacturer of heavy-duty earth-moving equipment is cutting almost 20% of its workforce – or 20,000 people. The news has raised fears for the company's 10,000 employees in the UK, which is Caterpillar's largest operation outside the US, and Ireland. It has factories dotted across the UK from Teesside, Leicester and Peterborough to Shrewsbury and Slough. In Ireland its electricity generator business FG Wilson is Europe's largest assembler of generators.
sourced from The Guardian
Household names, including electronics retailer Philips, construction equipment maker Caterpillar and drug group Pfizer announced thousands of job losses, with many posts expected to be lost in the UK. Steel company Corus, for instance, is axing 2,500 British workers as it dumps 3,500 worldwide.
Even upper-crust London retailer Fortnum & Mason, which can trace its roots back to 1705, is suffering. It emerged yesterday that the Piccadilly-based department store is looking to cut about 100 of its 530 staff as shoppers seek out cheaper alternatives to products such as its £500 picnic hampers stuffed with champagne, vintage marmalade and smoked salmon.
The scale of the challenge faced by world leaders as they grapple with the worst economic downturn since the second world war was underlined yesterday as Gordon Brown issued a stark warning that the global economy will be undermined unless countries work together to tackle the crisis. The prime minister said the world needed to "ensure that we do not experience a new form of financial protectionism, of mercantilism, of retreat into domestic financial markets".
In the US, where General Motors cut 2,000 jobs, President Barack Obama warned it was imperative that Congress pass his $825bn (£590bn) package of spending and tax cuts as soon as possible. "We cannot afford distractions," he said. "We cannot afford delays in getting legislation to boost the economy through Congress."
New research from the Institute of Directors showed British business leaders are not only pessimistic about their companies' prospects but have recently seen a marked deterioration in performance.
"In previous IoD surveys, companies were saying it's going to be hell out there in the future but we're not doing too badly at present. Now they're saying the problem is much closer to home," said the IoD chief economist and director of policy, Graeme Leach."We're a long way into the financial crisis but the economic crisis is only just beginning."
Managers across the UK, meanwhile, have accepted their own redundancy as "inevitable", according to the Chartered Management Institute (CMI), which has examined recent calls to its helpline. "Quite clearly, any suggestion that there is already light at the end of the tunnel is misplaced," said Ruth Spellman, chief executive of the CMI.
The job losses announced yesterday fell mainly across industry. Europe's largest consumer electronics company Philips is shedding 6,000 jobs after announcing its first loss for half a decade. US mobile phone company Spring Nextel is axing 8,000 and Pfizer is shedding 19,000.
But the biggest losses announced yesterday were from Caterpillar. The Illinois-based manufacturer of heavy-duty earth-moving equipment is cutting almost 20% of its workforce – or 20,000 people. The news has raised fears for the company's 10,000 employees in the UK, which is Caterpillar's largest operation outside the US, and Ireland. It has factories dotted across the UK from Teesside, Leicester and Peterborough to Shrewsbury and Slough. In Ireland its electricity generator business FG Wilson is Europe's largest assembler of generators.
sourced from The Guardian
Wednesday, 14 January 2009
Recession and the housing market
As the housing market starts falling is this going to most difficult year for many home owners. As the prices fall by up to £3,000 per month, this is not the time move.
But as I’m sure you will have noticed a lot of houses that were for sale late last year are now for rent, people who have let their property will not find it an easy marked. If your house is on the market you would be very lucky to sell it, the biggest problem is agreeing a sale price and then all the people in the chain being able to to get the mortgages and financial security.
Almost 3,000 home owners are falling into negative equity every, negative equity is bad if you are planing or need to move. Negative equity means you are paying more for your mortgage then the value of your property.
But over a period of time house prices will increase after the low. I am not surprised this has happened to the housing market, the prices were getting so high and out of control. I know a lot of people hold the banks responsible for the housing situation, but we had a lot to do with it, people over estimated their salary with self certification and people mortgages them self’s up to the hilt.
read full article
But as I’m sure you will have noticed a lot of houses that were for sale late last year are now for rent, people who have let their property will not find it an easy marked. If your house is on the market you would be very lucky to sell it, the biggest problem is agreeing a sale price and then all the people in the chain being able to to get the mortgages and financial security.
Almost 3,000 home owners are falling into negative equity every, negative equity is bad if you are planing or need to move. Negative equity means you are paying more for your mortgage then the value of your property.
But over a period of time house prices will increase after the low. I am not surprised this has happened to the housing market, the prices were getting so high and out of control. I know a lot of people hold the banks responsible for the housing situation, but we had a lot to do with it, people over estimated their salary with self certification and people mortgages them self’s up to the hilt.
read full article
Recession and the housing market
As the housing market starts falling is this going to most difficult year for many home owners. As the prices fall by up to £3,000 per month, this is not the time move.
But as I’m sure you will have noticed a lot of houses that were for sale late last year are now for rent, people who have let their property will not find it an easy marked. If your house is on the market you would be very lucky to sell it, the biggest problem is agreeing a sale price and then all the people in the chain being able to to get the mortgages and financial security.
Almost 3,000 home owners are falling into negative equity every, negative equity is bad if you are planing or need to move. Negative equity means you are paying more for your mortgage then the value of your property.
But over a period of time house prices will increase after the low. I am not surprised this has happened to the housing market, the prices were getting so high and out of control. I know a lot of people hold the banks responsible for the housing situation, but we had a lot to do with it, people over estimated their salary with self certification and people mortgages them self’s up to the hilt.
read full article
But as I’m sure you will have noticed a lot of houses that were for sale late last year are now for rent, people who have let their property will not find it an easy marked. If your house is on the market you would be very lucky to sell it, the biggest problem is agreeing a sale price and then all the people in the chain being able to to get the mortgages and financial security.
Almost 3,000 home owners are falling into negative equity every, negative equity is bad if you are planing or need to move. Negative equity means you are paying more for your mortgage then the value of your property.
But over a period of time house prices will increase after the low. I am not surprised this has happened to the housing market, the prices were getting so high and out of control. I know a lot of people hold the banks responsible for the housing situation, but we had a lot to do with it, people over estimated their salary with self certification and people mortgages them self’s up to the hilt.
read full article
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