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Showing posts with label world. Show all posts
Showing posts with label world. Show all posts
Tuesday, 4 August 2009
The Recession 2009 forum
I would like to set up a recession2009 forum - where we can all exchange thoughts and ideas.
Chat on twitter -
or email me at
hope to chat to you all soon.
Chat on twitter -
or email me at
hope to chat to you all soon.
Should we pull the plug - Northern Rock makes hefty losses
"is it now time to let Northern Rock go, can we all continue to support the Bank with our own money. If this was a company then it would have gone into adminstration by know. Lets pull the plug on Northern Rock and let it close down - I know at lot of people will loss money but we can't afford to support the bank / share holders any longer"
by N Blakeley - recession 2009
Northern Rock has reported a loss of £724.2m for the first six months of 2009, compared with a loss of £585.4m in the first half of last year.
The nationalised bank said that 3.92% of its mortgage loans were more than three months in arrears, well above the national average of 2.39%.
It currently owes the government £10.9bn, but is waiting for European regulatory clearance for more funding.
Northern Rock was nationalised in February 2008
It had to be bailed out by taxpayers in 2007, when its model of borrowing short-term funds from wholesale markets to lend to mortgage borrowers was hit by the credit crunch.
It reported impairment losses from loans and advances of £602.2m for the first six months of the year, compared with £191.6m for the same period the year before.
Sunday, 19 July 2009
Obiturtary of the high street and other companies - UPDATED
Please follow the link to see updated list of high street and companies that have gone in administration since January 2008
Obituary of the high street and other companies
Obituary of the high street and other companies
Obiturtary of the high street and other companies - UPDATED
Please follow the link to see updated list of high street and companies that have gone in administration since January 2008
Obituary of the high street and other companies
Obituary of the high street and other companies
Latest figures confirm the Great British Recession
July 2, 2009
LONDON: The recession is now on a par with the very worst year of the Great Depression. Revised figures on Tuesday uncovered the full extent of Britain's economic contraction.
The economy shrank by 4.9 per cent in the year to the first quarter of 2009, the Office for National Statistics said. The fall in gross domestic product was far greater than previously calculated, as the government statistician realised the full scale of the fall in company activity.
"Clearly this is now the worst peacetime recession since the 1930s," said economist Michael Saunders of Citigroup. The worst contraction then was a year of about -5 per cent and "this year will not be hugely different".
The contraction in GDP during the first quarter alone was 2.4 per cent - the previous estimate was 1.9 per cent. This was the biggest one-quarter fall in 35 years.
read full article at The Sydney morning herald
LONDON: The recession is now on a par with the very worst year of the Great Depression. Revised figures on Tuesday uncovered the full extent of Britain's economic contraction.
The economy shrank by 4.9 per cent in the year to the first quarter of 2009, the Office for National Statistics said. The fall in gross domestic product was far greater than previously calculated, as the government statistician realised the full scale of the fall in company activity.
"Clearly this is now the worst peacetime recession since the 1930s," said economist Michael Saunders of Citigroup. The worst contraction then was a year of about -5 per cent and "this year will not be hugely different".
The contraction in GDP during the first quarter alone was 2.4 per cent - the previous estimate was 1.9 per cent. This was the biggest one-quarter fall in 35 years.
read full article at The Sydney morning herald
Latest figures confirm the Great British Recession
July 2, 2009
LONDON: The recession is now on a par with the very worst year of the Great Depression. Revised figures on Tuesday uncovered the full extent of Britain's economic contraction.
The economy shrank by 4.9 per cent in the year to the first quarter of 2009, the Office for National Statistics said. The fall in gross domestic product was far greater than previously calculated, as the government statistician realised the full scale of the fall in company activity.
"Clearly this is now the worst peacetime recession since the 1930s," said economist Michael Saunders of Citigroup. The worst contraction then was a year of about -5 per cent and "this year will not be hugely different".
The contraction in GDP during the first quarter alone was 2.4 per cent - the previous estimate was 1.9 per cent. This was the biggest one-quarter fall in 35 years.
read full article at The Sydney morning herald
LONDON: The recession is now on a par with the very worst year of the Great Depression. Revised figures on Tuesday uncovered the full extent of Britain's economic contraction.
The economy shrank by 4.9 per cent in the year to the first quarter of 2009, the Office for National Statistics said. The fall in gross domestic product was far greater than previously calculated, as the government statistician realised the full scale of the fall in company activity.
"Clearly this is now the worst peacetime recession since the 1930s," said economist Michael Saunders of Citigroup. The worst contraction then was a year of about -5 per cent and "this year will not be hugely different".
The contraction in GDP during the first quarter alone was 2.4 per cent - the previous estimate was 1.9 per cent. This was the biggest one-quarter fall in 35 years.
read full article at The Sydney morning herald
Ten US banks fail recession test
May 8 2009
US banks would need a total of £50 billion in additional funds to survive if the recession deepens, the results of government "stress tests" showed.
An assessment of the robustness of the sector found that 10 of the 19 largest banks would need to find extra capital to see them through the bad times.
Bank of America faces the largest potential shortfall of £23 billion.
It joined a list of institutions that also includes Citigroup and Wells Fargo.
The stress tests were designed to gauge whether America's 19 largest banks have enough capital to see them through a deepening of the recession.
After Bank of America, Wells Fargo was found to have the second largest shortfall of £9.1 billion, followed by GMAC with a potential £7.6 billion black hole.
US banks would need a total of £50 billion in additional funds to survive if the recession deepens, the results of government "stress tests" showed.
An assessment of the robustness of the sector found that 10 of the 19 largest banks would need to find extra capital to see them through the bad times.
Bank of America faces the largest potential shortfall of £23 billion.
It joined a list of institutions that also includes Citigroup and Wells Fargo.
The stress tests were designed to gauge whether America's 19 largest banks have enough capital to see them through a deepening of the recession.
After Bank of America, Wells Fargo was found to have the second largest shortfall of £9.1 billion, followed by GMAC with a potential £7.6 billion black hole.
Ten US banks fail recession test
May 8 2009
US banks would need a total of £50 billion in additional funds to survive if the recession deepens, the results of government "stress tests" showed.
An assessment of the robustness of the sector found that 10 of the 19 largest banks would need to find extra capital to see them through the bad times.
Bank of America faces the largest potential shortfall of £23 billion.
It joined a list of institutions that also includes Citigroup and Wells Fargo.
The stress tests were designed to gauge whether America's 19 largest banks have enough capital to see them through a deepening of the recession.
After Bank of America, Wells Fargo was found to have the second largest shortfall of £9.1 billion, followed by GMAC with a potential £7.6 billion black hole.
Citigroup is being asked to raise an additional £3.3 billion to make it secure. Goldman Sachs, JP Morgan Chase and American Express were among the nine banks deemed not to need to raise additional funds.
The stress tests were designed to help regulators assess the ongoing financial stability of US banks.
They look at two models of the economy going forward - one in which unemployment reaches 8.8% next year and house prices drop a further 14%. In the second scenario, joblessness rises to 10.3% and property slips another 22%.
Banks facing a shortfall under the model will have to come up with a plan to raise additional capital by mid June.
If they cannot do so independently, they may have to turn to the government's £466 billion financial bailout fund.
sourced from Runcorn and Widnes Weekly News
US banks would need a total of £50 billion in additional funds to survive if the recession deepens, the results of government "stress tests" showed.
An assessment of the robustness of the sector found that 10 of the 19 largest banks would need to find extra capital to see them through the bad times.
Bank of America faces the largest potential shortfall of £23 billion.
It joined a list of institutions that also includes Citigroup and Wells Fargo.
The stress tests were designed to gauge whether America's 19 largest banks have enough capital to see them through a deepening of the recession.
After Bank of America, Wells Fargo was found to have the second largest shortfall of £9.1 billion, followed by GMAC with a potential £7.6 billion black hole.
Citigroup is being asked to raise an additional £3.3 billion to make it secure. Goldman Sachs, JP Morgan Chase and American Express were among the nine banks deemed not to need to raise additional funds.
The stress tests were designed to help regulators assess the ongoing financial stability of US banks.
They look at two models of the economy going forward - one in which unemployment reaches 8.8% next year and house prices drop a further 14%. In the second scenario, joblessness rises to 10.3% and property slips another 22%.
Banks facing a shortfall under the model will have to come up with a plan to raise additional capital by mid June.
If they cannot do so independently, they may have to turn to the government's £466 billion financial bailout fund.
sourced from Runcorn and Widnes Weekly News
Saturday, 18 July 2009
Indicators of economic depression ending-- Google searches vs. job losses
read the full article at examiner.com
Larry Summers, Obama's top economic advisor has summed up the state of the economy today in what Forbes online is calling "promising", but somewhat "obscure" signs of recovery.
The Job Impact of the American Recovery and Reinvestment Plan
- "Earlier this year traders were betting there was a one-in-six chance that the Dow would fall below 5,000, he said. Now they say it's one-in-a-hundred.
- The chances that corporate bonds will default has fallen by a third.
- And Google searches for 'economic depression,' which surged to quadruple their normal levels, have since returned to normal. (A growing number of economists do believe that the recession has ended or will end in coming months.)"
read the full article at examiner.com
Indicators of economic depression ending-- Google searches vs. job losses
read the full article at examiner.com
Larry Summers, Obama's top economic advisor has summed up the state of the economy today in what Forbes online is calling "promising", but somewhat "obscure" signs of recovery.
The Job Impact of the American Recovery and Reinvestment Plan
- "Earlier this year traders were betting there was a one-in-six chance that the Dow would fall below 5,000, he said. Now they say it's one-in-a-hundred.
- The chances that corporate bonds will default has fallen by a third.
- And Google searches for 'economic depression,' which surged to quadruple their normal levels, have since returned to normal. (A growing number of economists do believe that the recession has ended or will end in coming months.)"
read the full article at examiner.com
Saturday, 7 February 2009
Wednesday, 4 February 2009
British jobs for British workers
Deal hope in foreign workers row
 Workers say the action is not racist, but about discrimination against Britons |
A possible deal to end the row over the use of foreign labour at Lincolnshire's Lindsey Oil Refinery will be put to local union leaders and workers later.
The proposal emerged after talks chaired by Acas.
A GMB union source told the BBC the deal could see half of the disputed 200 jobs offered to British workers, but the Unite leader has denied this.
Hope that new 'half-and-half' deal in foreign workers row could end wildcat strikes
A proposed deal that could end the bitter row over foreign workers at an oil refinery will be put to unions today.
Marathon talks aimed at ending a series of wildcat strikes at Lindsey plant in Lincolnshire ended last night with the outline of a possible deal.
Union sources said it involved offering half the jobs of the disputed recruitment contract to UK workers.
Downturn will bring big fall in migrant workers, says CBI
Companies facing decline in demand for goods and services will reduce their use of agency staff, MPs are told
The use of migrant labour in Britain will decline abruptly as companies face a sharp fall in demand for their goods and services, the Confederation of British Industry told MPs yesterday. John Cridland, the CBI's deputy director general, told the Commons home affairs committee that the first response of many firms to the downturn was to reduce their dependency on agency staff, many of whom are migrant workers.
He said that there was evidence that many nationals of new EU states were going home as unemployment rose in Britain and suggested that the flow of skilled migrants from outside Europe would also decline. He added: "I expect that, when we have the next report from the [Home Office's] migration advisory committee on the needs for skilled labour, we will not see the same need for non-EU labour in the same numbers because of the need to provide as many employment opportunities as possible for the unemployed. All I'm suggesting is that the market will correct itself, but what we cannot avoid is a significant increase in unemployment, which is a sad but inevitable consequence of recession."
read full articles Click here
British jobs for British workers
Deal hope in foreign workers row
Workers say the action is not racist, but about discrimination against Britons |
A possible deal to end the row over the use of foreign labour at Lincolnshire's Lindsey Oil Refinery will be put to local union leaders and workers later.
The proposal emerged after talks chaired by Acas.
A GMB union source told the BBC the deal could see half of the disputed 200 jobs offered to British workers, but the Unite leader has denied this.
Hope that new 'half-and-half' deal in foreign workers row could end wildcat strikes
A proposed deal that could end the bitter row over foreign workers at an oil refinery will be put to unions today.
Marathon talks aimed at ending a series of wildcat strikes at Lindsey plant in Lincolnshire ended last night with the outline of a possible deal.
Union sources said it involved offering half the jobs of the disputed recruitment contract to UK workers.
Downturn will bring big fall in migrant workers, says CBI
Companies facing decline in demand for goods and services will reduce their use of agency staff, MPs are told
The use of migrant labour in Britain will decline abruptly as companies face a sharp fall in demand for their goods and services, the Confederation of British Industry told MPs yesterday. John Cridland, the CBI's deputy director general, told the Commons home affairs committee that the first response of many firms to the downturn was to reduce their dependency on agency staff, many of whom are migrant workers.
He said that there was evidence that many nationals of new EU states were going home as unemployment rose in Britain and suggested that the flow of skilled migrants from outside Europe would also decline. He added: "I expect that, when we have the next report from the [Home Office's] migration advisory committee on the needs for skilled labour, we will not see the same need for non-EU labour in the same numbers because of the need to provide as many employment opportunities as possible for the unemployed. All I'm suggesting is that the market will correct itself, but what we cannot avoid is a significant increase in unemployment, which is a sad but inevitable consequence of recession."
read full articles Click here
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
Sunday, 18 January 2009
UK recession set to be confirmed
The UK is set to go into recession on Friday 23rd January 2009
The Press Association
The UK's slide into recession is due to be confirmed on Friday when output figures for the fourth quarter of 2008 are released.
The contraction in Britain's economy for the final three months of the year follows a 0.6% decline in GDP for the third quarter - a 'technical' recession as defined by two successive quarters of negative output.
Experts, including the deputy Governor of the Bank of England Sir John Gieve, have warned that the contraction will be sharp.
Most economists are forecasting that the economy shrank at double the pace seen the previous quarter.
A 1.2% decline in GDP would be the worst performance since the third quarter of 1990, at the height of the last recession, when GDP also fell 1.2%.
However, some experts are warning that the decline could be as much as 1.3%, which would be the biggest fall in more than 28 years.
GDP would last have fallen by more in the second quarter of 1980, when it plunged by 1.8%. The annual rate of output in 2008 is also set to make for grim reading in what will be a far cry from the 3% seen in 2007.
It will also make the Treasury's initial forecasts for growth of between 2% and 2.5% look woefully optimistic.
This year is predicted to be far worse, with the economy forecast by some to shrink by 2% or even closer to 3% in what could be the biggest decline since the Second World War.
In a week dominated by economic news, inflation figures are also due out on Tuesday and minutes of this month's Bank of England interest rates meeting will follow on Wednesday.
The reduction in VAT together with the recession's impact on demand and firms' pricing power is set to have pulled inflation down again sharply, to 2.6% in December.
The predicted drop in the Consumer Prices Index (CPI) marks an exceptionally steep decline on the 4.1% seen in November and will likely lead to further fears over deflation.
article sourced from The Press Association
UK recession set to be confirmed
The UK is set to go into recession on Friday 23rd January 2009
The Press Association
The UK's slide into recession is due to be confirmed on Friday when output figures for the fourth quarter of 2008 are released.
The contraction in Britain's economy for the final three months of the year follows a 0.6% decline in GDP for the third quarter - a 'technical' recession as defined by two successive quarters of negative output.
Experts, including the deputy Governor of the Bank of England Sir John Gieve, have warned that the contraction will be sharp.
Most economists are forecasting that the economy shrank at double the pace seen the previous quarter.
A 1.2% decline in GDP would be the worst performance since the third quarter of 1990, at the height of the last recession, when GDP also fell 1.2%.
However, some experts are warning that the decline could be as much as 1.3%, which would be the biggest fall in more than 28 years.
GDP would last have fallen by more in the second quarter of 1980, when it plunged by 1.8%. The annual rate of output in 2008 is also set to make for grim reading in what will be a far cry from the 3% seen in 2007.
It will also make the Treasury's initial forecasts for growth of between 2% and 2.5% look woefully optimistic.
This year is predicted to be far worse, with the economy forecast by some to shrink by 2% or even closer to 3% in what could be the biggest decline since the Second World War.
In a week dominated by economic news, inflation figures are also due out on Tuesday and minutes of this month's Bank of England interest rates meeting will follow on Wednesday.
The reduction in VAT together with the recession's impact on demand and firms' pricing power is set to have pulled inflation down again sharply, to 2.6% in December.
The predicted drop in the Consumer Prices Index (CPI) marks an exceptionally steep decline on the 4.1% seen in November and will likely lead to further fears over deflation.
article sourced from The Press Association
Saturday, 17 January 2009
Finance crisis: In graphics
This is one of the most tumultuous times on record in the global financial markets.
The financial landscape is going through a period of upheaval with some major firms folding, other operations merging and a limited number of companies in both the Europe and the US, being rescued by governments.
BILLION-DOLLAR BAIL-OUTS
Governments have spent billions of dollars on rescue packages, led by the US with its $700bn rescue package.
soured from The BBC read full article
Finance crisis: In graphics
This is one of the most tumultuous times on record in the global financial markets.
The financial landscape is going through a period of upheaval with some major firms folding, other operations merging and a limited number of companies in both the Europe and the US, being rescued by governments.
BILLION-DOLLAR BAIL-OUTS
Governments have spent billions of dollars on rescue packages, led by the US with its $700bn rescue package.
soured from The BBC read full article
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.
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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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