TUC calls for tax reforms September 8, 2008 The Trade Union Congress (TUC) has called for a new higher-rate tax bracket for those earning over £100,000, putting it on a collision course with Conservative leader David Cameron. The TUC’s statement, made in advance of its annual conference which begins tomorrow in Brighton, contrasts sharply with a newspaper interview given by Cameron at the [...]
Cash and bonds will help protect your investments from stagflation August 29, 2008 It’s time to re-balance your portfolio to cushion the blow of the bear market, says Bill Jamieson Investors have arrived at a critical inflection point on portfolio planning. Many believe that key sectors of the equity market such as banks and house builders are now undervalued, yet they choose to remain markedly underweight in these [...]
Pound slumps as recession fears mount August 27, 2008 Prospect of interest rate cuts pushes sterling and the euro down as the greenback surges Growing recession fears and expectations of interest rate cuts sent the pound tumbling to a two year low against the dollar yesterday. Markets are now pricing in a 75 basis point cut in interest rates over the next 12 months, [...]
Why Brussels red tape is threatening our credit market August 5, 2008 When markets hit turbulent times, we naturally look to regulators to provide stability and to restore confidence. Good regulation can be a real strength – I believe that the UK’s world-class regulatory regime contributes enormously to London’s ongoing success. The best regulation comes about through dialogue and consultation with practitioners. This is why last week [...]
A year on from Northern Rock, what next for mortgages? August 4, 2008 The question of whether the government can rescue the mortgage market is now being asked by its own advisers, as if the mortgage market can be sorted out in some kind of a vacuum, detached from the rest of the banking sector. I can understand ministers want to stabilise house prices, and that making more [...]
It is still not the time to be buying into retail stocks July 31, 2008 The European General Retail sector has fallen by about 25 per cent so far this year. But does this sharp decline in price make retail shares a good buy? We think that there are a variety of reasons to remain wary. The first reason is a depressed outlook for consumer demand. With continued worries about [...]
UK recession looms July 30, 2008 The UK is drifting into a recession, leading economists warned yesterday, as approvals for British home loans in June hit their lowest level since records began and retail sales fell at their fastest pace in at least a quarter of a century. Home mortgage approvals, loans that are agreed but not yet made, fell in [...]
MPC vote split three ways July 24, 2008 A surprise three-way split between Bank of England rate setters left economists guessing whether an interest rate rise was on the cards. The minutes of July’s Monetary Policy Committee rate contained the word inflation 54 times, which is higher than the average, according to Lehman Brothers, highlighting the MPC’s concerns about cost rises. Seven members [...]
The perfect storm July 16, 2008 Higher than expected inflation figures and growing concerns about the banking sector knocked London’s FTSE 100 index of leading stocks down 2.4 per cent yesterday to under 5,200. The benchmark index has now fallen 23 per cent since a June 2007 high and is in clear bear market territory. Bank stocks, unsettled by fears that [...]
Housing recession creeping closer as Barratt cuts jobs July 11, 2008 Leading economists predicted yesterday that house prices will fall by 35 per cent by the end of next year, as lender Halifax reported a 2 per cent slump in values last month. Britain’s biggest mortgage lender said that house prices are already 6.1 per cent lower than last June, fuelling fears Britain is heading for [...]