From the Timesonline.co.uk: “It hardly seems possible, but Britain’s big freeze is to get worse. Just as the country digs itself out of Monday’s snow and ice, another belt of snowstorms threatens to strike the southern half of the country on Thursday and Friday with the risk of another major shutdown of the economy. The depression that brought the first mass of snow has slipped southwards and is now slowly wheeling around in the Bay of Biscay. It is ready for a second attack, later today, beginning with rainshowers along the South Coast. Because the ground is already covered in snow, it behaves like a refrigerator chilling the air — so the rain will rapidly turn to snow as the depression heads inland.”
But when will the spring arrive? And why is Britain so badly prepared for snow? Read here to discover more!
It’s a a hard Friday for the UK: it’s official we are in recession. Probably it’s not exactly news, but all the newspapers have opened today with new even darker predictions for the future.
The BBC.co.uk reports: “The UK is now in recession for the first time since 1991, official government figures have confirmed. … That means that the widely accepted definition of a recession – two consecutive quarters of falling economic growth – has been met”.
The Timesonline.co.uk explains: “Britain is in the grip of its sharpest recession for three decades, grim official figures confirmed today. The economy suffered a brutal 1.5 per cent drop in Gross Domestic Product (GDP) during the past three months, shrinking at its fastest quarterly pace since 1980”.
People in London feel the pressure: unemployment is accelerating sharply, with 1.92 million people now out of work, the housing market remains severely depressed and retail sales are weak. There are no ‘green shoots of recovery’, no light at the end of the tunnel. The average recession in the UK since 1955 has lasted for three quarters, but the past two recessions have lasted for five. But people don’t lose the hope and the will to do and work.
Good afternoon. London Presence is back today, flipping through the pages of the Financial Times- the UK’s best business newspaper.
Founded in 1888 by James Sheridan and his brother, the Financial Times has specialised in reporting business and financial news while maintaining an independent editorial outlook.
Printed as a broadsheet on distinctive light salmon-coloured paper, the FT is the only paper in the UK providing full daily reports on the London Stock Exchange and world markets.
Let’s see the 3 main news stories of today:
The main UK headline reads, “Inflation falls for first time in 15 months”. The article reads, “Consumer prices tumbled in October, justifying the Bank of England’s dramatic 1.5 percentage point interest rate cut earlier this month and opening the door for further reductions in the costs of borrowing, according to economists.”
We find another newspaper in more business news of the day;
“The Independent to shed quarter of journalists”. Reading on, “The Independent newspaper and its Sunday sister title will cut up to a quarter of their editorial staff in one of the most savage cuts to hit the UK newspaper industry in recent years as management seeks £10m of savings, the company said on Tuesday.”
From Business Life – “Epicentres of new austerity”. The article begins, “The party is over and the hangover has kicked in. In economies all over the western world, corporate executives and the rising stars of finance are beginning to think that this downturn could be different.”
Good morning. Let’s start the week with a quick update from the Business World:
1) “London rallies on China’s £375bn stimulus plan,” says the Timesonline.co.uk today. “Shares in London rose by over 130 points in early trading as mining stocks soared on China’s surprise plan to pump four trillion Yuan (£375 billion) into the world’s fastest growing economy.”
2) “Gordon Brown hints at tax cuts,” writes the Guardian.co.uk. “Prime Minister suggests taxes will be reduced to push the UK out of recession. At the weekend the Financial Times reported that ministers were drawing up an emergency package of tax cuts. It said that, according to experts, cuts would have to be worth about £15bn to have much effect.”
3) “Jobless total set to soar to 1.8m,” reveals the Financialtimes.com. “Unemployment is likely to have risen above 1.8m, the highest level since 1998… Economists at the Royal Bank of Scotland and BNP Paribas expect that unemployment will continue to rise sharply next year and could reach 2.7m by the first quarter of 2010.”
4) Reuters.com writes, “Circuit City Stores Inc, the No. 2 U.S. consumer electronics retailer, filed for bankruptcy protection on Monday, falling victim to tighter credit terms from vendors and a loss of market share to Best Buy Co, Wal-Mart Stores Inc and other rivals… Circuit City filed a week after saying it would close 155 stores, or more than one-fifth of its retail base, and eliminate 17 percent of its U.S. workforce. It also said it was considering all options to restructure.”
5) The Christian Science Monitor starts its new life today: from daily-print format to a multi-platform news organisation with a 24/7 daily online publication, a weekly print edition and a daily electronic subscription product. Here we have the future of journalism: this event marks the definitive step to the digital age, as Marketwatch.com explains.
Good afternoon and welcome back. It never rains but it pours:
1. “Recession will hit UK hardest” – says the Guardian.co.uk -, economists predict slowdown will be sharper in Britain than in any other major European countries and Britain will suffer a deeper recession than any other mature EU economy. Consequence? The European Commission’s latest half-yearly forecast predicts UK unemployment will rise from 5.3% in 2007 to 7.1% in 2009 — which would bring the number out of work to about 2.25 million.”
2. “HBOS deal to save Lloyds £1.5bn,” writes BBCNews.com. “Lloyds has said that its acquisition of HBOS would save it at least £1.5bn a year, raising fears of heavy job losses from the merger. Both banks have also unveiled further write-downs on assets ravaged by the credit crunch, with HBOS hardest hit. The banks also detailed plans to raise up to £17bn as part of the government’s bank bail-out plan. Unions said that the banks should think about the human cost of the takeover and avoid compulsory redundancies.”
3. “Ryanair profits fall sharply,” reveals today’s Financial Times. “[Its] profits fell heavily in the first six months under pressure from the doubling of fuel costs, and the group forecast that it would be in loss during the second half of the year… The group, Europe’s largest low cost carrier, had only “limited visibility” of forward bookings, but from October to March would fall by between 15 and 20 per cent leading to losses in the third and fourth quarters.”
4. WorldNews explains, “Gordon Brown hinted at another emergency global interest cut yesterday amid warnings that UK unemployment is set to soar to almost 3million. The Prime Minister promised ‘co-ordinated action’ across the world as pressure grew on the Bank of England to slash the cost of borrowing by as much as 1 per cent this week.” We shall see.
How much money did the crash cost? Today the Bank of England said that the market crisis has cost $2.8 trillion to date, leaving the world’s financial system in a situation similar to the aftermath the First World War. This is just the first half-yearly health check of the City, but the Bank of England has underlined how a new regulation is necessary. Policymakers have learned the lesson from the mistakes that have led this crisis, that doesn’t seem to be over: the report also expressed cautious optimism about the effectiveness of the recent change of trend.
Today The Guardian explains: “The £50bn pledged by the government had helped underpin the system and would provide a breathing space for UK banks so that they did not have to sell assets at cut-price values immediately. The Bank’s estimate exceeds that made by the International Monetary Fund recently. The IMF concentrated on US institutions and did not include losses from the turmoil of recent weeks. Estimated paper losses from UK banks on mortgage-backed securities and corporate bonds are currently £122.6bn, the Bank report said. Gordon Brown insisted yesterday that it was right for the government to increase borrowing in order to fund investment to help the economy through tough times. But he moved to reassure markets that he would not preside over a reckless increase in borrowing during the recession and said he would reduce it as a proportion of GDP once the economy picks up.”
Good morning and welcome back. Today we’ll avoid the news from the Stock Exchange and from the present economic forecast, and instead draw attention the main events of this week in London.
28th October – the banks will appeal a ruling that the Office of Fair Trading had the power to challenge their fees for unauthorised overdrafts.
1st November – the Competition Commission gives its provisional view on Kangaroo, the proposed multi-broadcaster video-on-demand service that will join BBC, ITV and Channel 4, allowing Google and Apple to become dominant Media Businesses.
Here is a quick press review selected from the most interesting business news of the day:
Pound Falls to 5 Year Low Against Dollar: the pound slid to the lowest level in more than five years against the dollar after the Bank of England Governor Mervyn King said Britain’s worst banking crisis since World War I is likely to push the economy into a recession – read more on bloomberg.com.
Factory gloom ‘worst since 1980’: the slowdown in the UK economy is now spreading to sectors previously resilient to weaknesses in the banking and housing markets. The crisis is spreading into all sectors of business, affecting unemployment and inflation – read more on BBCNews.co.uk.
Soaring art market returns to earth with a bump: the global financial crisis has finally caught up with the art world. Experts warn that things are likely to get tougher: what’s happened in the financial markets will also damage the art market because liquidity is tighter everywhere – read more on Reuters.co.uk.
European business backed up: during this crisis, resultant cuts in jobs, production and investment, means companies must hunker down hoping to survive what they fear will be a ferocious reversal – read more on Ft.com.
David Beckham will join AC Milan on loan in January: the English football player will move to Italy for few months at the beginnig of 2009, according to Adriano Galliani, the Italian club’s vice-president. Beckham wants to train and play with Milan, and Milan wants him: Beckham’s commercial value means full stadiums and read sponsors. Maybe not all rich men are crying – read more on Thetimesonline.co.ukthe English football player will move to Italy for few months at the beginning of 2009, according to Adriano Galliani, the Italian club’s vice-president. Beckham wants to train and play with Milan, a sentiment reciprocated by the Italians: Beckham’s commercial value means is nothing but good news for club merchandise and ticket sales – read more on Thetimesonline.co.uk
Hello and welcome back. The ups & downs of the markets of last week have had several more consequences, all adding to the long list of repercussions of the ongoing crisis.
Only one month ago one of the biggest banks of Canary Wharf closed and now The Chartered Institute of Personnel and Development announced that unemployment is increasing everyday – no sector excluded. Official figures show a 164,000 quarterly rise in unemployment.
It will be a woeful winter for the markets, for employers and for the employees and moreover for those looking for a new job. Please see our parent accountancy website Westbury for the full report.
The sun appears to be breaking through after the storm that hit the financial market last week. The London Stock Exchange has continued to increase its value after the G8 Meeting of Sunday. France, Spain, Italy, Germany, Austria, Finland, Sweden, Australia, New Zealand, Indonesia, India, South Korea, Japan and Qatar all took measures to guarantee deposits and improve bank liquidity, showing an encouraging recovery for markets across the world.
The governments committed trillions of dollars to stop the collapse of the financial system, a measure that appears to have been successful so far. The decision of the American Treasury will provide a wide variety of banks with $250bn (£143bn). However, whilst a renewed confidence this week underlines how the collapse of the markets last week was the result of a common fear, we’re far from clear of danger.