Financial Crisis
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urged to make clear in the Budget how it intends to address a looming mortgage funding gap once Government support is withdrawn from lenders.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.
Pick of the early morning news
Helen Fowler
Mar 11th 2010
Filed under: Markets, Financial Crisis, News , Retail
Even a recession cannot dull the national appetite for beer and fun, as pub chain JD Wetherspoon proved today. The firm announced record first half profits of £36.2m from its estate of more than 700 pubs, up more than 40% on the previous year.Unveiling its results, Wetherspoon criticised government attempts to reduce drunken behaviour. "The crackdown on pubs may actually exacerbate the problems of binge drinking," said the firm. "It has resulted in more drinking, especially by young people, in the unsupervised environments of parties, streets and parks."
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.
Budget date fires election starting gun
Helen Fowler
Mar 10th 2010
Filed under: Markets, Personal Finance, Financial Crisis, Budget 2010, News , Taxes
The Budget will take place on March 24, in what is expected to be the opening battle in the general election. Today's confirmation of the Budget date suggests the government is planning on May 6 for the election. The imminent election means this year's Budget is likely to be more of a balancing act than ever. The Labour government is on a rock (the need to prove it is serious about cutting record levels of public borrowing). It is also close to a hard place (the need to woo the electorate and win votes). Neither aim is particularly compatible with the other.
UK consumers back to buying
Omotola Akerele
Mar 9th 2010
Filed under: Financial Crisis, News , Retail
Retail sales shot up again during the month of February according to latest figures from the trade group British Retail Consortium (BRC).UK retail sales values were up 2.2% on a like-for-like basis last month compared to February 2009, when sales had dropped 1.8%. On a total basis, sales rose 4.5% against only 0.1% growth during the same period last year.
Cash-strapped Britons tighten their belts
Helen Fowler
Mar 9th 2010
Filed under: Personal Finance, Financial Crisis, Taxes
Scrimping. Saving. Pinching pennies. Whatever you call it, many of us are doing it. Nearly a third of the population has cut down on everyday luxuries such as eating out, theatre and cinema. A fifth of us are spending less on holidays. The same proportion has switched to cheaper supermarkets.Amid so much frugality, you might think we would all pay as little tax as possible. Wrong. We are set to waste a collective £9 billion in unnecessary tax payments, reveals a financial website.
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.
Bupa results up on corporate growth
Chris Wheal
Mar 9th 2010
Filed under: Company, Financial Crisis, Insurance
Private medical insurance (PMI) and healthcare provider Bupa announced revenues up 17% to £6.94bn, with organic growth of 5%, favourable foreign exchange movements of 7% and the full year effect of recent acquisitions of 5%.It said its surplus before tax was up 117% to £416.5m and its underlying surplus before tax was up 4% to £428.2m. For a recession year those are impressive figures. Expectations would be that PMI sales would fall but Bupa signed up foreign and business customers.
Budget 2010: Housing market forecast
Christina Jordan
Mar 8th 2010
Filed under: Financial Crisis, Budget 2010, Mortgages, News
Darling's final budget before the General Election is expected to throw more than a few crumbs to voters. But can the housing and mortgage markets expect to see any goodies or have they maxed out on State support over the last two years?
State-funded banks charge over the odds on mortgages
Christina Jordan
Mar 8th 2010
Filed under: Financial Crisis, Mortgages, News , Banking
Bail out the banks and how do they repay us?
By charging higher rates of interest on mortgages than those lenders that didn't require taxpayers' money.
Nationalised and part-nationalised banks priced their homeloans above average rates over the last year, according to financial information provider Moneyfacts.
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.
CBI alarmist over UK doing a Greece
Chris Wheal
Mar 8th 2010
Filed under: Financial Crisis, Budget 2010
Richard Lambert, director-general of the Confederation of British Industry (CBI) has written to Chancellor Alistair Darling demanding the government bring forward plans to balance its budget by two years to 2015-16.The CBI says this is key to addressing concerns about the UK's public finances and its AAA debt rating. This is scare-mongering by the CBI. To suggest the UK's ability to pay is in question, in the way Greece has suffered, is childish politicking.
Economy doing worse than suspected?
Coutts AIG bond row may end in court
