The UK is predicted to show a small .3% growth in GDP, therefore signalling the end of recession. There hasn´t been any growth since 2008 and so far there has been a 6% contraction in the overall economy since its highest point. Experts warn that the recovery will be fragile, this is understandable considering the depth of the problems we had.
The housing market is also showing some signs of stabilizing with prices ending up slightly higher at the end of ´09 than at the start of the year. Again, tentative signs that should not be construed as a full speed ahead recovery.
Monday, January 25, 2010
Thursday, February 19, 2009
Inflation Fallen Less Than Expected
........... but we still need to fight the threat of deflation.
The consumer prices index (CPI) fell from 3.1% to 3% in December. That was higher than expected as economists had expected a rise of 2.7% according to a Bloomberg survey.
The Retail Prices Index (RPI) – which includes housing costs – tells a similar story. It rose 0.1% in January whereas some commentators had expected a fall.
Source : Fool
The consumer prices index (CPI) fell from 3.1% to 3% in December. That was higher than expected as economists had expected a rise of 2.7% according to a Bloomberg survey.
The Retail Prices Index (RPI) – which includes housing costs – tells a similar story. It rose 0.1% in January whereas some commentators had expected a fall.
Source : Fool
Sunday, February 15, 2009
US Stimulous Plan Approved
Great news for the worldwide economy.
I think its fair to say that the US is really pushing to get the economy back on its feet.
The Guardian published an article stating that The Duke of Westminster has had to visit bankers to discuss his banking covenants.
He also refuted the claim that banks could seize assets.
I think its fair to say that the US is really pushing to get the economy back on its feet.
The Guardian published an article stating that The Duke of Westminster has had to visit bankers to discuss his banking covenants.
He also refuted the claim that banks could seize assets.
Tuesday, February 10, 2009
€10 Billion Loss "Seemed Like a Good Idea at The Time"
The above shocking comments were from Sir Fred Goodwin (Ex-Numero uno at RBS) and he was referring to the misguided purchase of ABN Amro, whose toxic debts made it virtually worthless.
America will be the place to watch today, as the latest TARP announcement is being made, watch for a strong market reaction, particularly in the banking sector - which way will it go?
America will be the place to watch today, as the latest TARP announcement is being made, watch for a strong market reaction, particularly in the banking sector - which way will it go?
Friday, February 6, 2009
The RBS Bonus Situation Escalates
Peter Mandelson The Business Secretary intervened regarding the issuing of bonuses for RBS executives in a couple of weeks time.
As my previous post says the general public will be nothing less than outraged if said bonuses are awarded to traders, whose risky portfolios contributed to the bank now being 68% owned by the state.
Sir Philip Hampton ex-Sainsburys boss, has a tough job ahead of him. 7 executives have retired making way for the his new team.
Its amazing that greed and the use of ill understood derivatives could lead to such a mess and even more astounding that this high risk strategy went unchecked.
As my previous post says the general public will be nothing less than outraged if said bonuses are awarded to traders, whose risky portfolios contributed to the bank now being 68% owned by the state.
Sir Philip Hampton ex-Sainsburys boss, has a tough job ahead of him. 7 executives have retired making way for the his new team.
Its amazing that greed and the use of ill understood derivatives could lead to such a mess and even more astounding that this high risk strategy went unchecked.
Thursday, February 5, 2009
House Prices Rise in the UK
One of the leading lenders in the UK, The Halifax actually recorded a 1.9% gain in house prices over the month of Jan. This piece of news was totally unexpected.
It would be easy to get carried away and attribute it to the road of recovery, however there are so many other issues currently, that such assumptions would be naive.
Unemployment is rising rapidly, liquidity is still poor and consumer confidence is at rock bottom. That said, Halifax housing economist Martin Ellis optimistically views this statistic as a sign of stabilization.
Lets hope he´s right
It would be easy to get carried away and attribute it to the road of recovery, however there are so many other issues currently, that such assumptions would be naive.
Unemployment is rising rapidly, liquidity is still poor and consumer confidence is at rock bottom. That said, Halifax housing economist Martin Ellis optimistically views this statistic as a sign of stabilization.
Lets hope he´s right
UK Tax Payers Pay RBS trading arm GBM £100´s Millions in Bonuses
After The Royal Bank of Scotland has been bailed out by the taxpayer, they are planning to pay out £100´s Millions to high flyer's. The justification for this is that if they don´t reward the talent they will defect.
I am sure the average UK citizen will feel little compassion for poorly reward traders.
UK Financial Investments (UKFI), the Treasury operated body holding the Government´s stake in RBS have allowed the payments. They do understand how incendiary this will be to the UK taxpayer.
Ministers vetoed bonuses to members of the board as a condition of the rescue, but anyone below board level in unaffected.
I wonder how transparent these payments will be when they are made?
I am sure the average UK citizen will feel little compassion for poorly reward traders.
UK Financial Investments (UKFI), the Treasury operated body holding the Government´s stake in RBS have allowed the payments. They do understand how incendiary this will be to the UK taxpayer.
Ministers vetoed bonuses to members of the board as a condition of the rescue, but anyone below board level in unaffected.
I wonder how transparent these payments will be when they are made?
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