Economy
FeedCall for Budget clarity on mortgage gap
Christina Jordan
Mar 11th 2010
Filed under: Economy, Financial Crisis, Budget 2010, Mortgages
The Government is being urged to make clear in the Budget how it intends to address a looming mortgage funding gap once Government support is withdrawn from lenders.
The Council of Mortgage Lenders (CML) claims that "this is a matter of urgency in view of the scale of the problem and its potential implications on future funding to support economic recovery".
BoE reports prices and economy fears
Chris Wheal
Mar 11th 2010
Filed under: Economy, Financial Crisis, Banking
The Bank of England's (BoE) February quarterly survey of public attitudes to inflation, found the pessimistic public expect inflation to rise, interest rates to rise and the economy to be weaker.Mind you the people they asked were numpties. Only 41% knew interest rates had fallen over the past 12 months (the survey was in February, 11 months after rates last fell). You can't take what that lot said too seriously.
Economy doing worse than suspected?
Helen Fowler
Mar 10th 2010
Filed under: Economy, Financial Crisis, News , Taxes, Banking , Election 2010
Could public finances be in even worse shape than already suspected? We already know the economy is in a bad way. Biggest peace-time deficit, banks on verge of collapse, triple A rating under threat etc. Now an influential report says the government underestimates the scale of difficulties. The report claims that additional tax rises or spending cuts of £20bn a year (over and above what we already know about) will be needed within three years. The government is also too optimistic in its economic growth predictions, suggests report author PricewaterhouseCoopers.
FSA publishes Financial Risk Outlook
David Burrows
Mar 10th 2010
Filed under: Economy, Financial Crisis
The Financial Services Authority (FSA) has published its Financial Risk Outlook (FRO) outlining the main risks and issues present in its operating environment, affecting firms, markets and consumers.This year's FRO is divided into four sections:
Macroeconomic background and outlook looks at how fiscal and monetary policy support has limited the scale and duration of the global recession, and the future impact of its removal;
Output figures dampen recovery hopes
Chris Wheal
Mar 10th 2010
Filed under: Economy, Financial Crisis
Production output in January 2010 was 1.5% lower than in January 2009 but manufacturing output rose overall by 0.2% in January 2010 compared to the same month a year ago, showing the first annual increase since March 2008.The latest figures from the Office of National Statistics (ONS) make for mixed reading. Between December and January total production output fell 0.4% and manufacturing output decreased by 0.9%. But the cold weather won't have helped.
AAA downgrade risk increases for UK
Adrian Holliday
Mar 10th 2010
Filed under: Debt, Economy, Banking , Election 2010
The Brown government needs to be clearer about its planned austerity measures. If it can't, then a downgrade of its AAA credit rating looms.That's the view of Fitch Ratings. Fitch says that though plenty of other EU countries are getting their debt priorities in ordier, the UK is lagging.
Rock losses narrow but bonuses are back
Adrian Holliday
Mar 10th 2010
Filed under: Debt, Economy, Loans, Mortgages, Banking
When you've made a £257m loss is it right to splash out on bonuses? For some, that would be an easy question to answer.Not for Gary Hoffman though, boss of Northern Rock. He's defending the decision to pay out bonuses because he claims Northern Rock is now £500m ahead of government targets put in place to turn the bank around.
Pick of the early market news
Adrian Holliday
Mar 10th 2010
Filed under: Company, Economy, Markets
Oil players have had a volatile year – and explorer Tullow Oil hasn't managed to escape the difficult trading environment. The FTSE-100 oil player has endured a massive profits whack – down 93% on last year. Tullow Oil's full year results reveal that pre-tax profits shrank to just £20m compared to almost £300m in 2008. Earnings per share, likewise, saw a stunning decline, from 30.9p to just 1.9p.
Remove all financial safety nets - Myners
Adrian Holliday
Mar 9th 2010
Filed under: Debt, Economy, Financial Crisis, Banking
Let's remove the bail-out safety net. Let's start treating money as if it's something you could actually lose. Crikey, you mean, the government won't bail us out if we make a boo-boo? Even just one or two?
That's right. That was the crux of Lord Myners' Smith Institute speech last night to financial industry players: start behaving as if you really have something to lose.
IoD has 34 ways to save the UK £50bn
Chris Wheal
Mar 8th 2010
Filed under: Economy, Financial Crisis, Budget 2010
The Institute of Directors' (IoD) boss Miles Templeman (pictured) has used its Business Manifesto 2010 to demand that the next Government cut the deficit as soon as it takes office. I'm not sure government do Miracles on Fridays.The reality is, like the CBI, the IoD wants to protect high income earners and businesses from tax rises and impose swingeing cuts on the public sector, believing they will not have the negative effect on the economy that some fear.
Icelanders reject £3.4bn debt plan
Adrian Holliday
Mar 7th 2010
Filed under: Debt, Economy, Financial Crisis, Savings and Accounts, Banking
Icelanders have overwhelmingly voted against paying off their British and Dutch debts. More than 90% of those who voted claim they will not enter debt slavery, paying back more than £3.4bn, for the wrongs of a selfish minority of well-connected bankers and ineffective regulatory oversight.Icelanders do want to take responsibility for their debts, many say. They just want a fairer deal. So, the British and Dutch government will have to wait a bit longer for their I.O.U chits to be paid off.
Chambers of Commerce cut forecast
Chris Wheal
Mar 7th 2010
Filed under: Economy, Financial Crisis, Budget 2010
The British Chambers of Commerce (BCC) has cut its forecast for 2011 growth from 2.3% to 2.1%, after just 1% growth this year, warning: "obstacles to a sustained medium-term recovery now appear greater".But the BCC is more optimistic on jobs, cutting its prediction for peak unemployment from 2.7 million to 2.65 million by the third quarter of this year. Surely a slow, steady recovery is better than a return to boom and bust?
Iceland prepares for The Big "Nei"
Adrian Holliday
Mar 5th 2010
Filed under: Economy, Savings and Accounts, Banking , Credit Reports
Iceland's referendum about its repayment terms to Britain and the Netherlands will go ahead shortly. A "Nei" vote is widely predicted.Icelanders have plenty of good resasons to say 'Nei"– as well as plenty of good reasons to accept the crushing weight of its £3bn debts: the possibility of EU membership and international financial aid from the IMF.
Unions prepare to bite back at Kraft
Adrian Holliday
Mar 5th 2010
Filed under: Company, Debt, Economy, Job Focus
We want above-inflation pay rises. We want promises you won't cut pay for extra hours or other benefits. That's the blunt message Cadbury workers are telling new owner, Kraft. But will they listen? Kraft handed over £11.4bn for the British chocolate maker. It did this by borrowing more than £7bn - which means it's under pressure to keep costs to a minimum.
Brown attacks Obama's financial reforms
Adrian Holliday
Mar 4th 2010
Filed under: Economy, Markets, Financial Crisis
Don't believe the smiles. Gordon Brown thinks President Obama's plans to limit the size of US banks and ban high-risk trading activities won't work. And he's sent business secretary Lord Mandelson to give the message to the Americans personally. Mandelson has been in Manhattan where he told a group of business students at New York University that the speed of America's reform program came as a surprise to the Brits - and this surprise is a measure of just how much less special the so-called "special relationship" is these days.
Economy doing worse than suspected?
Coutts AIG bond row may end in court
