According to information from the Centre for Economics and Business Research (CEBR) property prices in the UK are due to rise in 2010 driven by low borrowing costs and the shortage of homes. Property values are due to rise by five percent and mortgage costs will cheapen as the Bank of England retains a its record low 0.5 percent key interest rate. CEBR have reduced their property price forecast from 6 percent after the tax on home purchases rose and cold weather damped demand for property. Average mortgage interest rates are expected to drop by around one percent by the start of 2011.

US based billionaire investor Warren Buffett, has backed Bank of England Governor Mervyn Jones previous comments by stating that said he doesn’t envy the winner of the UK general election, who will be faced with the need to make "politically very unpopular" decisions to cut the deficit. Speaking after the annual shareholder meeting of Berkshire Hathaway before a crowd of 40,000 , Mr Buffett warned the next occupant of No 10 to fear the bond market, which could turn against the UK if public spending is not brought back into balance over the long term.

Buffet’s comments regarding the UK’s current financial plight echoes previous statements made about growing government debt across the Western world. The debt has been incurred as a result of the economic stimulus measures put in place to prevent a much worse recession after the financial panic of 2008.

It has been reported that the collective wealth of the UKs 1,000 richest people increased by 30 per cent in 2009, largely due to the efforts of London-based steel magnate Lakshmi Mittal. Claiming the top spot for the sixth consecutive year Mittal seen his fortune double from £10,800 million to £22,450 million in the wake of the recovery of the steel industry worldwide.

Chelsea owner Roman Abramovich remains second on the list, whilst adding a mere £400 million to his stack of £7,400 million.

The Duke of Westminster, retains his place as the wealthiest UK born member of the list saw his mainly property based fortune increase to £6,750 million.

According to a recent survey, most of the UK’s small companies feel that the current tax system it too complex, and would like to see it simplified,

Two thousand small and medium sized UK enterprises (SMEs) took part in the survey that found that 77% participating feel that the current system is preventing them from taking advantage of tax benefits and breaks, while

60% were found to be unaware what entitlements they may be suitable for.

While many experts see SMEs as the engine for economic recovery and a key battleground in the upcoming election, many small businesses find the complexity of the tax system frustrating, with almost three quarters with the impression that the tax system was actually acting as a barrier for start-ups.

An ambitious new UK company offering people the chance to rent their neighbours’ cars has had hundreds of drivers registering on the site just a week after launch. The company Whipcar, launched in mid-April, uses the internet to connect owners of underused cars with drivers looking for short-term rentals for a trip to the shops or the school run. But insurance limitations mean that Whipcar has had to turn away a surprisingly large number of sports car owners. Who wanted to become part of take advantage Whipcar’s system, which lets them set their own price before lending their pride and joy to fully insured and vetted neighbours. Whipcar is just one example of a business using the web as a marketplace to bridge the gap between car ownership and traditional rentals. Streetcar, which pioneered car clubs in the UK, was acquired last month for $50 million by Zipcar, an American competitor whose model it was based on.

The FTSE 100 joined stock markets globally in tumbling deep into the red as the Greek bailout failed to ease investor fears. The Footsie fell 2.6%, down 142.2 points to 5411.1,

US-based United Airlines and Continental Airlines have agreed a deal to merge, creating the world’s biggest carrier. The two companies, that both have made losses in recent years, have predicted that the merger, worth around two billion pounds, will allow the now company to cut around five hundred million pounds ($1 billion) a year.

The new company will be trade as United Airlines while using the current Continental colours. News of the deal sent both companies shares upwards of Wall Street.

Shares on Wall Street have fallen sharply as concerns about high levels of European government debt continue to reduce confidence.

The Dow Jones falling by 2%, and NASDAQ by 2.98 %. THE Dow Jones closed down 225 points to 10926.77 while NASDAQ dropped 74.49 points to close on 2924.25

Oil giant BP has acknowledged that they are to be held responsible for cleaning up the huge oil spill which occurred after an accident to one of its wells off the Gulf of Mexico on the US coast.

BP boss Tony Hayward predicted that the spill would need to be contained for two to three months. Since the BP Deepwater Horizon rig sank on 22 April Thousands of barrels of oil have been leaking into the ocean. Meanwhile BP shares hit a seven-month low on about the cost of cleaning up the massive oil spill. Shares in BP fell by 4.3%, (25 pence) to 551 pence in early trading, making for an overall fall of more than 15% since the explosion on the rig two weeks ago.

Despite of forecasts that car sales are not liable to peak again for five years, it has been reported that global car production increased by more than half in the first quarter of this year in comparison to 2009,. Data for 12 of the world’s biggest car markets, accounting for more than three-quarters of world automobile output, showed double-digit increases in the first quarter of 2010. In China, Japan, Canada, Mexico, and the UK, the year-on-year rise was up by almost 75%.

Reaction to the approval of an unprecedented bail-out package to rescue Greece’s embattled economy has been muted. The package, which will see Eurozone members and the IMF loan Greece €110 billion (£95 billion) over three years, had been widely anticipated, but came after the Greek government agreed to make severe budget cuts.

However several Eurozone member countries, with Germany’s voice being loudest heard, have questioned whether the rescue package and budget cuts combined will be sufficient to solve Greece’s deep-seated problems.

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Tags: Bank, Bank of England, Banking, BP, BP Deepwater Horizon, British Economy, CEBR, Centre for Economics and Business Research, Continental Airlines, Dow Jones, Economics, Economy, Employment, Financial News, FTSE, Gordon Brown, Lakshmi Mittal, Mervyn Jones, Money, Money Markets, Mortgage, Mortgages, NASDAQ, Property Prices, Recession, Retail, Roman Abramovich, Streetcar, Tony Hayward, UK Banks, UK Economy, UK government, UK Recession, United Airlines, Wall Street, Warren Buffett, Whipcar, Zipcar

Financial analysts fear that Britain could be among the countries that could follow Greece into a financial crisis. The uncertainty comes after Dominique Strauss-Kahn’s head of the International Monetary Fund (IMF) warned of economic "contagion" spreading across Europe.

The IMF urged politicians to finalise a bail-out for the debt-laden Mediterranean country, saying that every day lost in resolving the problems risked spreading the impact "far away".

Strauss-Kahn’s comments came amid growing evidence of Europe’s mounting fiscal problems after Spain’s debt was downgraded following in the footsteps of Portugal as well as Greece.

Late Thursday Germany was holding out for more economic reforms from Greece before agreeing to an unprecedented multi-billion euro bail-out plan.

UK house prices increased by 1% month-on-month in April, according to the latest house price index.

Property experts pointed out that April’s figures did receive an additional boost from the fact that April was one of the weaker months of 2009. However with property values beginning to increase from May last year, it will be difficult to maintain this rate of growth in the coming months.

On the commercial property front, it appears that the appeal of London’s robust shopping demand continues attract the leading for international retail chains to the city. A recent survey has revealed how 58 percent of international retail brands have opened outlets not just in London but throughout the UK, spurred by strong consumer demand.

Preliminary assessments have revealed that the European air transport sector swallowed as much as €2.5 billion in losses from disruption caused by Iceland’s volcanic eruption. The loss assessment conducted by the European Commission could well be the model that an industry bailout will be based on. Some of the airlines affected have argued that flawed computer models used by member states were partially responsible for grounding planes, even when the airlines insisted that was safe for them to resume their services. A spokesman for the UK Department for Transport stated that while the "UK cannot unilaterally provide new aid to affected companies it continues "to explore options" with the Commission. Meanwhile, budget airline EasyJet have cautioned that governments should be prevented from providing aid to "ailing national carriers" who might use the financial damage caused by the volcanic disruption as a pretext for a bailout.

Royal Dutch Shell today announced a 49% surge in first quarter profits as the energy giant joined rival BP in benefiting from higher oil prices.

The Anglo-Dutch group reported earnings of £3.2 billion ($4.9 billion) for the first three months of the year – a day after BP posted a profit of £3.6 billion for the same period. The company’s chief executive explained that rising energy prices and an improved operational performance meant Shell’s profits were sharply higher than the $1.18 billion in the final quarter of 2009.

Shell’s performance has lagged behind BP as it has been forced invest heavily in finding new sources of oil and gas at a time when refining margins are under pressure due to global overcapacity and economic weakness.

Today’s results are back to the levels of the first quarter of 2009, when crude prices averaged just over $41 dollars a barrel, while the figure today stands at an average of $76 dollars a barrel.

Imperial Tobacco has reported a 15 percent rise in profits for the first half of their financial year. The increase comes through an increase in demand in some of their key European markets for cheaper roll-your-own tobacco. From factory-made cigarettes Bristol-based Imperial Tobacco, whose brands include Lambert & Butler and Davidoff reported a pre-tax profit of £974 million for the six months to March 31, on turnover up eight percent at £13.4 billion.

Sterling continues to grow in strength against the dollar closing on $1.5351, whilst falling back slightly against the troubled Euro on €1.155

There was a positive mood on the stock exchange on Thursday, with U.K. stocks mostly on the up. Among the most active were Unilever, the world’s second-largest food and detergent company, whose shares advanced by 3.2 percent. After BSkyB the U.K.’s biggest pay-television provider reported an increase in third-quarter profit their shares rose by the most in more than a year. Also shares in AstraZeneca, the U.K.’s second-largest drug-maker, advanced by 2.3 percent.

The FTSE 100 rose 30.89 points to 5,617.8. The market appears to be rebounding from two days of losses prompted by the downgrading the credit ratings of Greece, Portugal and Spain.

Stateside, the Federal Reserve have conformed their pledge to keep interest rates low for an “extended period”, while offering a slightly more upbeat assessment of the US economy. The Fed’s open market committee reiterated that its main interest rate would remain at its target range of 0-0.25 per cent. The figure has stood at this level since December 2008.

Analysts point out that the financial recovery appears to be gathering steam in the US in recent months, with most economic indicators in line or ahead of previous expectations. However, pressure on policymakers to start raising interest rates has not risen accordingly, with inflation remaining in control.

On Wall Street, the Dow Jones made a recovery from early week falls, closing up 122.05 points to 11167.32, while the NASDAQ rose 40.19 points to 2511.92

It appears that American consumers have re-discovered the joys of shopping, with retail sales stronger than forecast. The US housing market, meanwhile, has shown fresh signs of a rebound, with home prices increasing on an annual basis for the first time in three years in February,

In the computer hardware world, the news is that Palm, one of the leading pioneer in the smart phone business, are to acquired by US computer giant Hewlett-Packard (HP) for £657 million ($1 billion)

A spokesman for HP said that Palm’s webOS operating system would help its expansion in the fast-growing market for smart phones and connected mobile devices. Although HP is paying a premium to Palm’s closing share price on Wednesday of $4.63, it is well below the company’s 52-week high of $18.09.

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Tags: AstraZeneca, Bank, BP, British Economy, BskyB, Davidoff, Dominique Strauss-Kah, Dow Jones, EasyJet, Economy, Employment, Financial News, FTSE, House Prices, HP, Imperial Tobacco, International Monetary Fund, Lambert & Butler, Money, Money Markets, NASDAQ, Palm, Recession, Retail, Royal Dutch Shell, Stock Markets, Stocks and shares, UK Banks, UK Department for Transport, UK Economy, UK government, UK Recession, Unilever, volcanic eruption, Wall Street

The UK economy continues its recovery from recession, with the news that the UK gross domestic profit (GDP) rose by 0.2% in the first three months of 2010, according to information provided by the Office for National Statistics, The figure was lower than the 0.4% growth predicted by many economists, but like the last quarter of 2009 may still be revised. Initial figures for that period, when the UK moved out of recession were originally estimated at 0.1%, were later revised to 0.4%. The ONS estimated that bad weather at the beginning of the year may have had an impact on output, particularly in the retail and industrial sectors. Meanwhile it was reported that manufacturing output grew by 0.7% over the quarter, while the utilities sector output also rose by 2.5%.

It has been confirmed that UK Government borrowing hit a record high of £163.4 billion in 2009, whilst remaining lower than the £166.5 billion initially predicted by Chancellor Alistair Darling in his 2009 Budget.

Despite that fact the figure still makes for s the biggest annual borrowing figure for a UK Government in peacetime.

In March alone, the figures from the Office for National Statistics (ONS) showed total borrowing of £23.5 billion.

For the first time, bonus rates on save as you earn (SAYE) schemes are to be cut to zero percent next month. The news has fostered concerns that some employees could shun participation in SAYE plans because there will be less incentive to save.

A £1 billion profits boost looks to be on its way for the Lloyds Banking Group brought about a block in rises of the pensionable salary of its staff. This vital cost saving is expected to play a significant part in returning Lloyds to profit in 2010. The move will also increase the likelihood that the government will be in a position sell its 41 percent stake in the bank in the near future.

As part of their new chief executive Adam Crozier’s expansion plans, Broadcaster ITV is reported to be considering an acquisition of its rival Five Industry sources predict that Crozier will implement expansion plans as soon as possible, before the general consolidation in the sector. If the deal goes through it would give ITV a 53 percent share in the television advertising market.

Two of the UKs largest property investment trusts are to merge to create the sixth-biggest listed property company in the UK with a combined market capitalisation of more than £1.6 billion The F&C Commercial Property Trust (FCPT), are to be merged with the UK Commercial Property Trust (UKCPT) that is owned by the Phoenix Group.

The new company will have a market capitalisation of about £1.6 billion and a property portfolio with net assets of £1.5 billion.

British newspaper and stationery retailer WH Smith has announced a four percent drop in like-for-like sales for the six months to the end of February. WH have spent £35 million in the first half of the year repurchasing shares in a buy-back scheme that has seen their share price rise by ten percent and pre-tax profit rise two percent to £62 million A spokesperson for the group announced that they have decided against extending the buy-back programme, choosing instead to invest in acquisitions and to return cash to shareholders at the end of year. On the news shares in WH Smith closed down 9.5 pence at 505 pence.

Lord Kirkham, founder and chairman of furniture retailer DFS stands to make in excess of £300 million pounds from the sale of his company to private equity firm Advent International, who have purchased the company for £500 million Kirkham will, he will hold on to DFS Properties, which owns approximately one third of the group’s store estate.

Homebuilders were among the biggest gainers in London after the US Commerce Department reported that new home sales in the United States were up by 27 percent in March, the biggest monthly percentage gain in almost half a century. Taylor Wimpey who sells around a third of its properties in the US showed close to a 10% gain on the stock exchange, Barratt Developments was up 4.52 percent, Persimmon 3.81 percent and Bovis Homes 3.45 percent.

The travel and leisure sector also finished the session and the week on a high. Travel returning to normal after the recent closures of airports and airspace in Europe due to ash in the air from the volcanic eruption in Iceland having its effects.

Cruise ship operator Carnival led gains in the sector as it added 5.87 percent, while shares in hotels operator InterContinental Hotels Group rose up by 4.37 percent. British Airways gained 3.86 percent as fears of a protracted grounding were put to the side.

The pound closed against the dollar down .030 on 1.5358 while the Euro closed up to 1.1488

U.K. stocks advanced the most in three weeks before the weekend. Despite a smaller-than-forecast increase in British gross domestic product, prospects for global economic growth remained strong the benchmark FTSE 100 Index rose 58.32 to 5,723.65 on Friday the highest rise since April 1. The increase pared this week’s retreat to 0.4 percent.

Overall The FTSE 100 remains 5.7 percent higher for 2010.

In his weekly radio and Web address, President Barack Obama said on Saturday taxpayer-funded bailouts of the auto industry that he approved had paid off, in what amounted to a rejection of conservative arguments against such government help.

President Obama continues to apply pressure for an overhaul of U.S. financial regulations, saying the promising news from the auto industry had not reduced the need for Wall Street changes.

Government bailouts of Wall Street continue to come under heavy criticism from conservatives who feel the government is spending too much money and that big firms should be allowed to fail.

General Motors Co and Chrysler both reported progress this week in their government-financed turnarounds. However the Obama administration still forecasts some loss on the taxpayer bailout of both companies to help them recover from the economic slump and a steep drop in auto sales.

The Dow Jones Industrial Average closed for the weekend up 70 points to 11,204.29 while the NASDAQ Composite was up 21 points on 2,530.10

Reports are that Greece’s talks with the IMF on emergency loans to finance its debt are going well. The Greek finance minister George Papaconstantinou predicted that Greece would not face problems funding its debts. To tackle the crisis, which has undermined the Euro, Greece has called for emergency funding from the IMF as well as its Eurozone partners. The Eurozone nations are expected to provide emergency loans of up to €30 billion (£26 billion) in the first year, with a further €10 billion coming from the International Monetary Fund (IMF). Greece will need some of the money as soon as the 19th May, when it needs to make a debt payment of $11.3 billion.

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Tags: 2009 Budget, Adam Crozier, Advent International, Alistair Darling, Bank, Banking, Barratt Developments, Bovis Homes, British airways, British Economy, Carnival, Chrysler, Credit Crunch, DFS, Economics, Economy, Eurozone, F&C Commercial Property Trust, Financial News, FTSE, General Motors, George Papaconstantinou, InterContinental Hotels Group, ITV, Lloyds Banking Group, Lord Kirkham, Money, Money Markets, Mortgage, NASDAQ, Office for National Statistics, Phoenix Group, SAYE, Stock Markets, Taylor Wimpey, UK Banks, UK Commercial Property Trust, UK Economy, UK government, UK Recession, Wall Street, WH Smith

British Prime Minister Gordon Brown said on Sunday he wanted Financial Services Authority (FSA) – - Britain’s financial watchdog — to investigate Goldman Sachs after it was charged with fraud by U.S. regulators. Meanwhile, the UK Financial Services Authority did not make any comment on Brown’s speech on Sunday. The U.S. Securities and Exchange Commission on Friday charged Wall Street investment giant Goldman Sachs with "defrauding investors" over subprime mortgage securities, which were largely blamed for the worst financial crisis since the Great Depression. The government agency, which is responsible for regulating the financial markets in the country, alleged that Goldman Sachs failed to disclose crucial information to investors of its securities that a major hedge fund had bet against the securities.

Royal Bank of Scotland, the part-nationalised UK bank that lost $840 million in an allegedly fraudulent investment created by Goldman Sachs, will await the outcome of US investigations before deciding whether to pursue its own legal action. RBS will see if the Securities and Exchange Commission is likely to be successful in the civil suit it has launched against Goldman. In the suit, it accuses the investment bank of securities fraud relating to a complex derivatives deal linked to subprime mortgages. RBS lost money on the deal through its ownership of ABN, the Dutch bank it bought at the height of the credit bubble in 2007, which had acted as a guarantor for ACA, the main counterparty in the deal.

City bankers saw near unprecedented income growth over the past decade, with the highest paid receiving nearly a third of the UK’s total wage bill, according to recent research. The study, which cited bankers’ bonuses and pay at the top end of financial services as a driving force behind Britain’s rising pay inequality, found financial services professionals took home an additional £12 billion a year by the end of the ten year period.

Bank dividends throughout Europe are at their lowest level on record as recovering financial institutions retain earnings to increase capital. According to city banking sources the average dividend yield among European banks is now 1.9 percent, with over a quarter of the continent’s top 50 banks paying no dividend. Regulators have been pressuring banks not to resume or increase payments while details of new capital requirements remain unclear. Some banks have cut dividends despite making a profit, with British bank Barclays cutting its dividend from 11.5 pence to 2.5 pence despite profits of £11.6 billion last year.

Shares in Royal Bank of Scotland closed up 2.1 pence at 50.4 pence on Monday, 0.2 pence above the 50.2 pence average price paid when the Government invested £45.5 billion pounds. The current price represents a £180 million profit for British taxpayers. Shares in Lloyds Banking Group rose 0.72 pence to 65.42 pence, leaving the taxpayer £2.26 billion in the red on the Government’s 41 percent investment.

Some of the UK’s poorest northern and peripheral regions have seen a growth in business and investment, narrowing the gap with the south as an attractive place to do business, according to a recent survey. The survey showed that the highest increase in rankings since 1997 for the UK’s periphery. Northwest England was the star performer in the index, rising from eighth to fourth place among the UK’s 12 regions.

According to a quarterly report for the Institute of Practitioners in Advertising, (IPA) signs of improving business confidence among UK advertisers are beginning to show, and for the first time since 2007 The survey, regarded as a barometer for both the economy as well as the advertising industry, found some 21 percent of marketing directors had increased their advertising budget in the first quarter of 2010, while 36 percent signalled plans to raise their spending in the new financial year.

In the run up to the World Cup Bumper shipments of digital set-top boxes for televisions are set to buoy first-half sales at Pace. The football tournament, which will be broadcast in high definition and in 3D, has seen pay-TV operators ship set-top boxes to customers in time for the contest. A spokesman for the company said the World Cup would act as an advertisement for high-definition television, boosting sales after the competition has finished. Pace said trading in the first quarter of 2010 had been in line with management expectations. It has forecast double-digit revenue growth for the full year amid equally strong volume improvements. Pace is focusing on producing technology for the next generation of set-top boxes, which will combine internet connectivity, multimedia storage and digital television. Last month, it acquired Bewan, a French maker of modems and “gateway” boxes that combine the features of wireless modems, digital storage devices and internet telephony routers.

Supermarket chain Tesco are planning to recruit 1,000 new members of staff to sell electronics in its stores. Tesco’s announcement of its new scheme comes in response to the debut of the American electronics chain Best Buy in the UK next week. Best Buy specialises in offering expert advice to customers on its products, a model that Tesco is hoping to emulate with its own "tech team". Tesco is expected to become the third largest electrical retailer in the UK next year.

Sterling suffered as fears over a possible hung parliament after next month’s election weighed on the pound. An opinion poll showed the UK’s Liberal Democrats, the smallest of the country’s three main parties, had taken the lead. That was the first time the Lib Democrats have led the polls and came after a well-received performance by Nick Clegg, Lib Dem leader, in last week’s televised debate between the UK’s three main political parties. The news heightened fears that an incoming government would lack the strength to get to grips with the UK’s record fiscal deficit. The pound was last seen sitting on $1.5353, and at €1.1440.

The FTSE 100 rose 40 points to 5783.60 at close of trading on Tuesday.

Wall Street banking giant Citigroup has reported a profit of $4.4 billion (£2.9 billion) for the first three months of the year.

The result represents a return to profit after the bank lost $7.6 billion in the last quarter of last year after repaying government loans.

Last week, rival bank JP Morgan reported better-than-expected first quarter profits of $3.3 billion while the Bank of America posted a $3.2 billion profit for the period.

The Dow Jones Industrial Average made some profits early in the week, up, down 99 points to 11.117.06 while the NASDAQ Composite rose by 20 points to close on 2,500.31.

Japanese car maker Toyota has agreed to pay a record $16.4 million (£10.7 million) to US safety regulators following recent safety concerns.

Toyota was asked to pay the fine for failing to inform the US government of safety concerns surrounding faulty accelerator pedals.

Millions of Toyotas were recalled earlier this year amid reports that the pedals could become stuck.

The fine is the largest ever handed out by the US transportation department.

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Tags: ABN, Bank, Banking, Barclays, Best Buy, British Economy, Citigroup, Credit Crunch, Dow Jones, Economics, Economy, Employment, Financial News, Financial Services Authority, FSA, FTSE, Goldman Sachs, Gordon Brown, Institute of Practitioners in Advertising, JP Morgan, Lloyds Banking Group, Money, Money Management, Money Markets, NASDAQ, Nick Clegg, Recession, Retail, Royal Bank of Scotland, Securities and Exchange Commission, Stock Markets, Stocks and shares, subprime, Tesco, Toyota, UK Banks, UK Economy, UK government, UK Recession, Wall Street, World Cup

Airports in the U.K. and northern Europe shut down as a cloud of volcanic ash swept south from an eruption in Iceland, disrupting travel for thousands of people booked on flights with British Airways Plc and other carriers. According to flight-control organization National Air Traffic Services, U.K. airspace will continue to be closed till the dust and ash disperses into the atmosphere. Norway and Sweden also shut airports and north-German terminals will also block departures and landings, as the ash threatens to stall jet engines and affect the quality of air in plane cabins. The problem comes after a volcano under Iceland’s Eyjafjallajökull glacier erupted for the second time in four weeks, with certain people claiming it might not have been an accident.

A recent report has shown that in March UK Consumer Confidence fell by the highest level since July 2008. The fall in confidence was largely attributed to the upcoming general election set to take place on May 6, and its uncertain outcome with the possibility of a hung parliament looming.

Job vacancies in London’s financial services industry more than doubled in the first quarter from under 5,000 to more than 11,000, when compared to the first quarter of 2009. Research has forecast the recovery would continue its momentum this year with a 26 percent rise on vacancies from the previous year. The report also showed rising salaries for City job candidates secure with a shortage of suitable candidates pushing salaries up. The picture outside of London is less optimistic where the financial jobs market was reported as being "sluggish"

The future of Arsenal Football Club remains unclear after U.S. billionaire Stan Kroenke, the club’s largest stakeholder, reportedly made a surprise move to acquire the St Louis Rams, an American football team. It was expected earlier this week that it emerged that after Arsenal’s fourth largest shareholder Lady Nina Bracewell-Smith had appointed Blackstone to find a buyer for her 15.9 percent share holding in Arsenal, Kroenke holds an almost 30% percent stake would make a move to take over the club. However, analysts have predicted that, at least for the time being, Kroenke is unlikely to make the bid as he will be short of the necessary capital to pursue both deals.

Telford Homes have announced that their performance for the year to April will be ahead of expectations. The Essex-focused residential property developer benefited from demand for housing close to the site of the London 2012 Olympics, with increased demand for homes in the Stratford area in particular. Sales have been boosted by foreign buyers with a company spokesman stating that the Games had "put Stratford on the map". The area around Stratford is undergoing multi-billion pound regeneration as well as the creation of a rail link to continental Europe.

Aim-listed technology company Bglobal, has won regulatory approval for its new Smart 1 product. The product will use mobile phone technology to convert traditional energy meters into "smart meters" without disrupting the power supply. A spokesman from Bglobal said the technology marked "a big step forward for smart meters", with the company also signing a marketing deal with mobile operator Orange. On the news, shares in Bglobal closed up two pence at 44.25 pence.

The three largest UK mobile phone operators — Vodafone, O2 and Orange have confirmed their appointments to market Apple’s iPad in Britain. However, they will have to put their marketing plans on hold as Apple has been forced to delay the worldwide launch due to unprecedented home demand. The three companies will offer competing monthly pricing plans for customers who want to surf the web using 3G mobile broadband services with both pre-pay and contract deals are expected to be offered.

Plans to create 3,500 jobs over the coming three years have been announced by the InterContinental Hotels Group. The jobs will be created as part of expansion plans, which will see the hotel company open 36 new hotels in the UK. Globally, expansion of the hotel company will see more than 100,000 jobs created during the same timeframe, as it opens 1,400 hotels. A spokesman for the InterContinental Hotels Group announced that a UK government commitment to support and promote the tourism industry would encourage InterContinental to create even more jobs.

After a performance that beat analysts’ full-year forecasts, high street retailer JD Sports Fashion have announced plans to increase their final dividend by 65 percent. A spokesman for JD Sports Fashion went on to announce that the company was considering further European acquisitions. Christmas trading helped to boost pre-tax profits 61 percent from £38.2 million to £61.4 million pounds, while turnover rose 15 percent to £769.8 million pounds. JD Sports increased its dividend from 8.9 pence to 14.7 pence. On the news, shares closed down 10.5 pence at 723 pence, coming after a rise of 13 percent in the last week.

The British Pound continued to rise higher after press reports that the Conservative Party have increased their chances of winning an outright majority in the upcoming general election, largely be promising to reduce the UK financial deficit.

The pound continues its slow recovery, closing at $1.5429, while rising e against the Euro at 1.1387.

The FTSE 100 continued its topsy turvey ride this week, rising 64 points to 5825.51

In the US, Ben Bernanke chairman of the US Federal Reserve has continued with his predictions that the US still faces "difficult choices" in cutting the country’s deficit, adding that weakness in the construction sector was still weighing on the economy. Bernanke’s cautious comments came despite data showing a 1.6% increase in March retail sales.

The Dow Jones Industrial Average continues its rise, up 112 points to 11.144.57 while the NASDAQ Composite also rose a massive 50 points to close on 2,515.69

Larger than expected first quarter profits of $3.3 billion (£2.1 billion), for the first quarter have been reported by Wall Street banker, JP Morgan Chase. The Wall Street firm’s net income was up 55% compared with a year ago, and unchanged on the previous quarter.

JP Morgan is the first major bank to report first-quarter results. On the news, their shares rose 3.4% to $47.40

China’s economy grew at an annualised rate of 11.9% in the first quarter of the year, which experts predict could lead to a revaluation of the yuan.

The growth figure was slightly higher than expected, while consumer price inflation was surprisingly low at 2.2%.

Internet giant Google has reported a 37% rise in first-quarter net profit, beating analysts’ expectations.

Profit for the three months to March came in at $1.96 billion (£1.26 billion) compared with the $1.42 billion for the same period last year

Turnover for the period climbed 23% to $6.78 billion, driven by an increase in online spending by advertisers. Google also announced that they taken on nearly 800 employees in the quarter, its biggest increase in staff for two years. Google’s total number of employees worldwide currently stands at 20,621.

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The National Association of Pension Funds (NAPF) have called for a radical overhaul of the state pension system.

The NAPF, a leading pension’s body wants the next government to introduce a new ‘Foundation Pension’ that would combine the Basic State Pension and the Second State Pension and would entitle all Britons to a state retirement pot of £8,000 a year. If accepted the NAPF proposals would boost pensioners’ incomes initially by £25 a week and would later rise in line with average UK earnings. In addition, around two million UK pensioners would no longer be required to request means-tested benefits.

Consumer Focus, a UK consumer watchdog is set to complain to government regulators about the fact that individual savings accounts holders are missing out on £3 billion a year in interest because of inefficient practices by providers.

The organization are to complain to the Office of Fair Trading stating that savers were being unfairly treated by banks and building societies by the practice of “bait pricing”, meaning offering attractive headline rates on cash Individual Savings Accounts (Isas) only to see the interest rates dropping dramatically drop a short time later.

Consumer Focus have also pointed out that account holders often face unnecessary and costly delays when transferring accounts, as well as a lack of clarity on interest rates. In certain cases arbitrary rules were imposed by cash Isa providers forbidding transfers into more attractive accounts.

According to the Office of National Statistics (ONS), growth in UK household incomes has decreased rapidly during three terms of the Labour government. The ONS report shows that while growth to disposable income increased by 13 percent per person between 1997 and 2001, after these figures were adjusted to meet inflation, true incomes rose by just 1.2 percent between 2005 and 2008. And when the credit bubble was at its peak, between 2006 and 2007, incomes barely increased. During Labour’s second term in government from 2001-05, Growth in pay, benefits, pensions and dividends after tax fell to seven percent

The UK government’s car scrappage scheme, has officially come to an end, with at least 330,000 cars have been sold.

After the scheme was introduced a year ago to help the recession-hit motor industry cope with falling sales, a fifth of cars sold in the UK were part of the scheme which may have created around 4,000 new jobs with manufacturers and suppliers were supported by the scheme.

Business Secretary Lord Mandelson stated his pleasure that the scrappage scheme has delivered the results aimed for. Estimates that the 330,000 figure could still rise as a number of cars purchased through the scheme are yet be registered, meaning that figure could rise to 400,000.

Clothing retailer Matalan have announced the completion of £525 million capital rising which will replace its existing debt package. Matalan was withdrawn from the market in March after private equity groups failed to meet the £1.5 billion valuation set by Matalan. The successful refinancing means a £250 million dividend for Matalan’s founder John Hargreaves.

Music Company EMI continue to make waves, with the news that they may be taken over by its bankers. The move comes after EMI failed to meet the terms of their covenants after failing to clinch a deal with Universal to sell them their distribution rights in the United States. The debt stems from a £4.2 billion pound buyout in 2007, leaving Terra Firma the private equity firm, that owns EMI holding a £3 billion debt to Citigroup. Terra Firma is now faced with the prospect of approaching their investors in an attempt to raise £20 million pounds by June 12 or face the prospect of Citigroup seizing control of EMI.

The news that manufacturing growth in the UK has risen at its fastest pace since 1994, saw Sterling making a long overdue rise. The pound climbed 0.5 per cent to $1.5274 and gained 0.4 per cent versus the euro to close on 1.1257.

The benchmark FTSE 100 was also up as the market closed for the Easter weekend. It rose 65 points to 5,744.89, making for a 5 per cent rise during the first three months of the year, and its best start to the year since 2006

A report from the Institute for Supply Management’s (ISM’s) as shown that the US manufacturing sector expanded in March at its fastest rate for six years.

The highly rated ISM’s purchasing managers index rose by 3.1 points to 59.6 points in March. Any figure of 50 or above represents growth, and last month was the eighth in succession that US manufacturers have increased their output.

The news of USA’s continued growth, which was at its fastest for 15 years in March comes after China and European nations also announced higher factory output.

As Wall Street wrapped up for the long Easter weekend, the Dow Jones Index was still on the rise up 70.44 points to 10927.07. The NASDAQ was less conservative, rising just 4.62 points to close on 2402.58

The number of Americans filing for unemployment insurance fell for the first time fell last week, matching the lowest level since August 2008. According to government data released today by the US Labor Department, there were 439,000 initial jobless claims filed in the week ended March 27, down 6,000 from an upwardly revised 445,000 the previous week.

Toyota’s US sales have reportedly bounced back as substantial discounts helped to win back customers who had been shaken by the firm’s mass safety recalls. Sales in the US for the Japanese carmaker jumped by 40.7 %in March compared with a year earlier, and after a slump of 8.7% in February.

Ford and General Motors also saw their sales rise last month, up 39.8% and 20.6% respectively, while Chrysler saw its sales fall 8.3%.

In Japan a key survey of local manufacturers has indicated that confidence is continuing to return to businesses, with the Bank of Japan’s Tankan index showing that business confidence had improved for the fourth straight quarter. The news came as Toyota saw a 50% increase in domestic car sales last month, belying some of the safety problems that have been reported in the last few weeks.

Oil moved forward from the $83-a-barrel level that has proved its undoing on many occasions over recent weeks, climbing 1.3 per cent to $84.82, the highest point since October 2008.

Gold also joined the rush, rising 1.3 per cent to close on $1,126 an ounce

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Tags: Bank, Banking, Basic State Pension, British Economy, Chrysler, Citigroup, Consumer Focus, Credit Crunch, Dow Jones, EMI, Employment, Financial News, Ford, Foundation Pension, FTSE, General Motors, Gold, Individual Savings Accounts, Institute for Supply Management, Lord Mandelson, Matalan, Money, Money Management, NAPF, NASDAQ, National Association of Pension Funds, Office of Fair Trading, Office of National Statistics, pension system, Recession, Second State Pension, Stocks and shares, Tankan, Terra Firma, Toyota, UK Banks, UK Economy, UK government, UK Recession, Wall Street

A recent report has stated that UK House prices have raised by more than 0.7 % (£3,000), while updates forecasts show that annual property inflation is due to slow down from the current rate of 9%. The increase more or less cancels the 0.8% fall in February.

The average UK property is now valued at £164,519, £16,773 more than the in February 2009, which was the low point in the recent property value slump In from the worst recession since World War II.

In last week’s budget, Chancellor of the Exchequer Alistair Darling scrapped a tax on house purchases for first-time buyers spending £250,000 pounds or less. The tax previously started at 1 percent for properties costing more than £125,000 pounds. The policy will mean nine in 10 first-time buyers will avoid the levy, according to government forecasts. Signs of increased demand is recent mortgage approval figures s released that show that almost 60.000 new mortgages were approved in February, more than double those approved at the at the trough of the financial crisis in November 2008, and less than half the 120,000 reading at the peak of the boom.

The Bank of England said net mortgage lending for February 2010 rose by £1.6 billion pounds, the most since December 2008.

In addition, figures recently released show that UK households added to their unsecured debts in February, with net consumer credit rising by £528 million pounds, a significant increase on economist’s predictions of a £400 million-pound increase. Credit-card lending increased by £374 million, while personal loans and overdrafts increased by £154 million.

Royal Bank of Scotland (RBS) have been fined £28.6 million for breaking competition law in the first big case brought against a financial services company, potentially exposing the part-nationalised bank to lawsuits from clients. RBS admitted staff involved in making loans to big law and accounting firms had illegally given pricing data to counterparts at Barclays. Barclays reportedly escaped being penalised because it voluntarily disclosed its part in the affair to the Office of Fair Trading.

Desire Petroleum, the British company who are drilling for oil off the Falkland islands have seen their shares halve in value , after they revealed the existing supply may not be commercially viable.

In a statement on their Web site, Desire stated that "oil may be present in thin intervals, but the reservoir quality is poor."

Desire will release the final results of its 30-day test drilling operation in the South Atlantic archipelago on Wednesday. According to the company it may have to drill deeper to find greater quantities of oil and gas.

Desire estimated that the North Falkland Basin could contain 3.5 billion barrels of oil as well as having "significant gas potential."

Potential revenues from oil and gas reignited have already re-ignited a long-running dispute between London and Buenos Aires over ownership of the Falklands.

Leasing UK high street banking groups, Banco Santander SA and Royal Bank of Scotland Group Plc are reported to be in advanced talks with the U.K. government over allowing their client’s access to their bank accounts through Britain’s 11,500 Post Offices. According to a recent statement, the negotiations are part of a package of measures intended to breathe life back into the Post Office network. Business Secretary Peter Mandelson is about to announce another series of measures, including allowing consumers to open a Post Office current account, issue mortgages for up to 90 percent of a property’s value. Another revolutionary proposal will be subsidised savings accounts for people on low incomes. If Mandelson’s proposal bears fruit, it means that the government will add 50 pence for every pound saved.

Mandelson was reported to have said that the Post Office is a well-loved community institution. "This move will bring more banking services back to the heart of those communities.” He concluded.

Nowadays, with pensions and benefits being paid directly into bank accounts, and services including car licensing have gone online. Falling revenue has seen the number of U.K. Post Office branches declined from 25,000 in their peak during the 1960s.

U.K. publisher Daily Mail & General Trust PLC have announced their predictions that first-half operating profit will be up sharply for the last six months trading figures. They state that the increase is due primarily to improvements within its consumer businesses, but it remains cautious about the second half of the year given the political uncertainty in the U.K. ahead of the imminent general election. The Daily Mail and the Sunday Mail newspapers reported an 8% rise in underlying advertising revenues at Associated Newspapers for the six months period.

The pound was little changed at $1.5079 while the Euro rose on increased optimism on the Greek situation to €1.1249.

The FTSE 100 index dropped again on trading, finishing down 31 points to 5,672.32

The Dow Jones industrial average ended at a fresh 18-month high and the rest of the market churned Tuesday as investors weighed a rise in consumer confidence, more weakness in the housing market and a stronger dollar.

The Dow Jones industrial average added 11 points, or 0.1%, closing at 10,907.42, the highest finish since 11,143.13 on Sept. 26, 2008. The NASDAQ composite also added 6 points to close on 2410.69.

The Irish government are expected to inject a further €8.3 billion Euros (£7.4 billion, $9.9 billion) into the nationalised Anglo Irish Bank.

A spokesperson for the Irish Finance Ministry revealed that pumping in more money was the" best of a series of bad options". Although both Allied Irish Banks and Bank of Ireland will attempt to raise funding from private investors, it appears more likely that Allied Irish Banks will also require taxpayer support,

This second bailout follows the nationalisation of Anglo Irish Bank last year.

The Irish government also owns 25% and 16% stakes in Allied Irish Banks and Bank of Ireland respectively

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Tags: Alistair Darling, Anglo Irish Bank, Banco Santander SA, Bank, Bank of England, Banking, British Economy, British Pound, Budget, Credit Crunch, Desire Petroleum, Dow Jones, Economics, Economy, Financial News, FTSE, General Trust PLC, House Prices, Inflation, Money, Money Markets, NASDAQ, Peter Mandelson, Post Office, Recession, Royal Bank of Scotland, Savings, Stock Markets, Stocks and shares, The Daily Mail, UK Banks, UK Economy, UK government, UK Recession, Wall Street

Much as he tried to keep a low profile on the subject, Chancellor Alistair Darling’s budget speech on Wednesday had a definite pre-election feel to it as were most of the measures taken, with the useful suspects of cigarettes, spirits and petrol taking their usual pounding, but to varying degrees.

No sooner than Darling closed his famous red briefcase,

Shadow chancellor George Osborne launched his expected attack, describing Labour’s Budget as being empty and lacking in vision.

In his speech the Chancellor was not slow to point out that Labour’s policies were "bearing fruit" and expressed what appeared to be genuine concerns that if the Tories should get into power their spending cut plans could send the UK back into a much feared "double dip recession".

The Liberal Democrats, who obviously felt that they had to add something to the debate, chipped in with "Labour and the Tories are both in denial about the scale of spending cuts needed".

In his budget speech, Darling did announce that the government will need to borrow less than expected this year to plug the gap in the UK’s finances, with

Net borrowing for the financial year expected to total £167 billion, down from the £178 billion previously forecast. Borrowing this year is still expected to be at a record high – equivalent to 11.8% of GDP.

On the downside, Darling also downgraded his growth forecast for the UK economy.

Fuel duty will rise more slowly than previously planned, with a previously announced 3% rise in fuel duty l now be staggered, with a 1% rise in April, a further 1% rise in October, and then again in January. 2011, with phasing the increase rather than raising fuel duty by 3% immediately will cost £550 million.

UK banks received a number of mentions in Darling’s speech some of which were even favourable. The general underlying theme was that the UK taxpayer will be looking to see the banks move back to profit while increasing their support the economic recovery and improve financial expansion.

Alistair Darling noted that £2 billion had been raised through the 50 per cent one off "super tax" on bankers’ bonuses over £25,000, making for a 400% increase of the original forecast of £550 million. The windfall will largely be spent on further measures to stimulate the economy as well as some to be set aside to subsidies university places.

Other interesting snippets from the budget were that the government will allow tax breaks for companies who run zero-emission cars. Currently employees with a company vehicle for private use are required to pay a tax charge, with the exception of electrically propelled cars. However, the government has pledged to expand the exemption to cover "green cars" with these incentives to come into effect after April 6. Darling also threw in the information that the scheme to fund the deployment of superfast broadband looks likely to cost the industry and the consumer much more than expected, with every telecommunication line be subject to a monthly 50 pence levy on landlines. The government claims the new tax is necessary to ensure superfast broadband reaches suburban and rural areas.

It also appears that in order to partly fund the Budget’s 2.5 billion pound package for small firms, Darling intends to switch £230 million pounds of spending for 2010-11 from the departments for business and transport. The department for business said 1£50 million pounds will be transferred, largely at the expense of the £950 million pound strategic investment fund, which is supposed to provide state financing for strategic growth sectors, such as the civil nuclear industry.

Returning to reality, the UK’s two rail trade unions have announced their plans for four days of strikes to kick-off two days after Easter. If the industrial action from the RMT and the Transport Salaried Staff’s Association does transpire , it could see the UK hold its first national rail strike since the system’s privatisation. However, there is a strong possibility that the strikes will be called off, with negotiations with National Rail, the infrastructure owner, already well under way. .

U.K. engineering-services firm Babcock International have announced their plans to acquire the VT Group for around £1.33 billion pounds, in a mix of cash and stock. The announcement comes after two previous bids had been rejected.

Babcock is to pay 361.6 pence in cash and 0.701 of its own shares for every share in VT Group. As the sale was concluded, the offer was valued at 734.9 pence a share, meaning that Babcock paid a 39% premium to the average closing price over the month VT investors will hold around 36% of the combined company once the deal is completed. On the news shares in VT Group rose 4.4% on the FTSE to 721 pence, while Babcock also posted strong gains, rising 3.8% to 553 pence. A spokesman for Babcock said that they expect the deal to boost their earnings significantly in the first full year after completion.

The pound continues to be a problematic issue in the Forex markets. It closed On Thursday on $1.4863 while the Euro rose a little to on €1.1143.

The FTSE 100 index seemed to be pushed forward by Darling’s budget as well as increased optimism on Greece. It closed up 54 points to 5,727.63.

The House of Representatives put the finishing touches on the overhaul of Obama’s pet Health Care bill by passing a companion package that would make insurance more affordable, raise taxes on the wealthy and close a gap for prescription drug coverage for seniors. The Senate approved the package earlier in the day, which means that it now goes to Obama to sign.

The votes concluded a yearlong political struggle that tied up lawmakers, as well as making for a noticeable dent in Obama’s popularity

However passing the Health Care bill might be causing some problems on Wall Street. The Dow Jones retreated a little after a week of impressive gains; down by 377 points to close on 10841.21 The NASDAQ also dropped 18 points to 2397.41.

Greece seems to be out of trouble, at least for the time being. All of the 16 Eurozone member countries have finally come up with their backing for a financing plan, with some of the funds coming from the International Monetary Fund (IMF). The loan will total €22 billion (£20billion), with the condition that it is only to be used if normal market lending facilities to Greece will dry up. According to French President Nicolas Sarkozy, the Eurozone nations would grant bilateral loans, totalling some two-thirds of the funding,

Greek PM George Papandreou was quoted as saying that it was "a very satisfactory" move.

Also breathing sighs of relief are the owners of the Dubai World investment vehicle who have just been granted a £6.4 billion ($9.5 billion) loan help it’s to restructure their debt burden from the Dubai government

Dubai World has presented a plan to restructure $ 23.5 billion of debt to its creditors, with the proposal including converting almost a quarter of the debt into equity. Creditors have now to decide on whether to accept the plan, with analysts predicting that it is as good as it gets. The troubled company stunned global markets in November last year when it asked for a six-month delay on debt repayments.

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Tags: Alastair Darling, Babcock International, Bank, bankers' bonuses, Banking, British Economy, Budget, Currency, Dow Jones, Dubai World, Economics, Economy, Financial News, Forex, FTSE, Fuel duty, George Osborne, George Papandreou, International Monetary Fund, Money, Money Management, NASDAQ, National Rail, Nicolas Sarkozy, Stocks and shares, superfast broadband, Transport Salaried Staff's Association, UK Banks, UK Economy, UK government, UK Recession, VT Group, Wall Street

It only stands to reason that the U.K.’s economic recovery will be slow in 2010. There is an election about to happen and the public have obviously chosen a path the correct path to save spend less and save more. According to the Confederation of British Industry (CBI) the economy will grow by 0.3 percent in the first quarter and move up to 0.4 percent in the second quarter, and will finally settle down to expanding 0.5 percent in the second half of the year. The CBI also predicted that gross domestic product (GDP) will increase by 1 percent in 2010 and 2.5 percent in 2011. Britain’s economy exited its deepest recession on record in the fourth quarter with growth of 0.3 percent.

Bank of England (BOE) officials were also expressing caution on the eve of what may well be the Labour Government’s last budget in well over a decade. The BOE have consistently issued warnings that financial recovery in the UK may prove uneven as credit strains persist.

Chancellor of the Exchequer Alistair Darling is due to deliver his budget today, with just a few weeks before the general election, the date of which is yet to be announced. A spokesman for the CBI stated that the government must avoid “damaging” tax rises and focus on spending cuts to narrow the record deficit,

As budget fever mounts, speculation is rife as to what Chancellor of the Exchequer Alistair Darling will reveal in his speech. Darling has repeatedly stated there will be no pre-election giveaways in the budget but he wants to encourage more investment in UK business after an 18-month recession.

It is expected that government departments which be called on to cut costs that will add some credibility to the U.K.’s deficit reduction plan and Yvette Cooper, the work and pensions secretary, has set the wheels in motion by announcing her department are plan to introduce savings of at least £500 million pounds by the 2012 / 2013 fiscal year.

What is for sure is that the Labour government will unveil their plans to establish a £2 billion "green" investment bank in the budget, designed to help Britain’s transformation to a low carbon economy. The green bank, designed to help finance projects such as railways, offshore wind power generation and eco-friendly waste management, will be partially funded by sales of government assets with the remaining money being drawn from the private sector.

Strike hit British Airways have come up with an estimate that the current three-day strike by the airline’s cabin crew will cost them around £7 million a day in lost earnings. However the airline hastened to point out that the industrial action was unlikely to have much impact on its earnings for the full-year. According to a company spokesman, around a third of flights to and from the UK’s main airports on Monday have so far been cancelled.

BA Heathrow suffered the biggest disruption on Monday, with 201 of the 443 flights on BA’s online schedule being cancelled.

Every cloud does have a silver lining and one of them appears to be that because of the recession, one in four children have reduced their spending. According to new research published this week t children’s attitudes to money have been strongly impacted by the recession with 80% of the children polled stated that they would prefer to save up to buy something rather than get into debt.

The latest financial results from fashion retailer Monsoon show an increase in profits for 2008/2009 eight times higher than the previous year. Over the year to August 29, 2009, the privately owned company showed a profit of taxes of £32.9 million, up from £3.9 million the previous year. Monsoon, who currently operate over 1,000 outlets, report strong sales at its overseas division. Over the next 12 months Monson plan to open another 140 stores.

Another fashion in the financial spotlight is New Look who has announced that they may resurrect their £1.7 billion flotation plans. The decision may come as soon as this week when the New Look board meets to consider whether market conditions have sufficiently improved. The fashion retailer shelved its planned IPO in February, blaming volatile markets. Meanwhile sales at the group are said to be ahead of expectations.

In a move which could raise as much as £400 million pounds Music recording giants EMI are reported to be considering plans to licence its music catalogue. Competitors in the industry would manage the music group’s catalogue, which includes music from The Beatles. If successful the licensing would enable EMI to meet their debt repayments and stave off an attempt by Citigroup, to take control of the company.

Sterling continues to fall ahead of this week’s budget and the fast-approaching general election due to be held in early May, and the prospects that it will be closely fought and may even result in a hung parliament.

The pound continues to be stuck around the $1.50 mark, closing at $1.5037 on Tuesday, while the Euro was on €1.1137.

As concern consists about debt levels whether the next government will be equipped to tackle challenges on public finances the pound looks likely to continue in the doldrums.

The FTSE 100 index closed on Tuesday up 23 points at 5,673.63.

On Wall Street, the Dow Jones was still on the rise, this time by 147 points to close on 10888.83 The NASDAQ also was on the rise up 42 points to 2415.24

According to Greece’s central bank the country’s economy is trapped in a "vicious circle" and is liable to contract more severely than government predictions. .

The Bank of Greece (BoG) said economic output in 2010 will fall by 2%, much higher than the Greek government’s prediction of between 1.2% and 1.7%.

BoG says the recession will be worse due to planned public spending cuts.

The report comes ahead of a European Union summit to discuss Greece’s economic crisis, as German resistance towards financial aid for Athens persists.

Athens has already come close to defaulting after misleading European partners about the scale of its financial problems, which last year saw its public sector deficit hit almost 13 per cent of gross domestic product

Meanwhile Germany’s coalition government is reportedly planning to establish a banking levy that will protect taxpayers from the costs of any future bank bail-outs. The German government was obliged to seriously deplete their treasury coffers to provide a €500 billion rescue package to shore up the banking system late in 2008.

On the other side of the World, in Dubai, bank officials await anticipation of the severely troubled Dubai World company presenting their long-waited proposals on how they intend to restructure $26 billion of toxic debt.

The Dubai stock market has surged 11% this month on speculation a proposal is imminent.

Crude oil prices managed to rebound from early weakness to settle at around $81.25 a barrel.

Analysts at the Centre for Global Energy Studies said that global oil demand was on the path to full recovery but upward pressure on prices would be limited due to supply side changes.

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Tags: Alistair Darling, BA Heathrow, Bank, Bank of England, Bank of Greece, Banking, British airways, British Economy, Budget, CBI, Centre for Global Energy Studies, Citigroup, Confederation of British Industry, Dow Jones, Dubai World, economic recovery, Economics, Economy, EMI, Employment, Financial News, FTSE, green bank, Money, Money Management, Money Markets, Monsoon, NASDAQ, New Look, Recession, Retail, Stocks and shares, UK Banks, UK Economy, UK government, UK Recession, Wall Street, Yvette Cooper

Under threat of the first nationwide strike by signalmen in 16 years, Network Rail announced on Friday night that it would meet next week at conciliation service Acas to discuss two separate disputes with the Rail, Maritime and Transport Union (RMT) and the TSSA, which represents managerial grades. The RMT is already threatening to strike over a proposed restructure of Network Rail’s maintenance operations which could lead to the loss of up to 1,500 jobs. However there are also worries over potential strike action by signalers in several areas of the country. The Acas talks will take place on either Monday or Tuesday.

In the air, British Airways have announced that their contingency plans for the first day of a three-day cabin crew strike have gone "extremely well".

A spokesman for BA said that according to their program, more than 65% of passengers would reach their destinations, with 1,157 staff working and some canceled flights reinstated. However the Unite union, representing the striking crew members has speculated that only a third of BA’s normal flights took off, with 125 out of its 250 planes grounded.

Another four-day strike is planned for 27 March in the pay and conditions row.

Within the next few days Chancellor Alistair Darling is expected to endorse plans for a global tax on certain financial institutions. These are institutions that are likely to pose a "systemic risk" by being dependent on government insurance schemes to stay afloat. Darling us expected to use the budget announcement to detail his backing of the proposals, with his key recommendations being that government revenue raised should go to national governments rather than an insurance scheme, which he believes would encourage banks to take more risk on lending and expansion. Darling’s views are similar to those expressed recently by Dominique Strauss-Khan head of the International Monetary Fund (IMF), who encouraged Europe to establish a system of orderly bankruptcy for cross border banks which would be less dependent on insurance schemes to fund bailouts.

In a recent survey conducted by Small Business Britain Entrepreneurs it was revealed that 40 per cent of small and medium, sized business enterprises (SMEs) would like to see a fall in employers’ national insurance contributions. In addition over 45 per cent would like to see banks to offer better rates to smaller firms. All in all they have called for Chancellor Alistair Darling’s budget to support small and medium-sized businesses, while at the same time, according to an unrelated survey small and medium-sized businesses are reported to be gaining increased confidence that the UK’s economic recovery looks likely to continue. The HSBC’s Global Small Business Confidence Monitor has reported that over three-quarters of SMEs now expected steady or increasing growth over the next six months

On the downside, the recent severe spell of weather has reportedly caused losses of around £7 billion pounds to SMEs. A survey showed that nearly two-fifths of those taking part stating that the harshest winter in decades had forced them temporarily cease operations, whilst more than forty percent said that weather conditions had cause some form of disruption to their business. Just less than a quarter of the firms surveyed announced that had not been affected by the severe weather in January.

Recent figures published today by the Society of Motor Manufacturers and Traders (SMMT) revealed that UK car production in February increased by almost two thirds against the same month in 2009, representing the fourth consecutive month that output has seen a year-on-year increase.

The SMMT announced that close to 100,000 cars came off the production line in February, with the majority going for export. In addition, around 10,226 commercial vehicles were also produced in February. A spokesman for the SMMT said the scrappage scheme continues to boost demand and production. The ‘cash for bangers scheme is due to expire at the end of this month with the SMMT predicting that the industry will be affected by the scheme drawing to a close.

Clothing retailer Next are expected to announce in their full year results due out on Wednesday that it has beaten many of its high street rivals. Pre-tax profits are predicted to have risen by £66 million pounds to £635 million pounds. Other companies due to release their results this week include supermarket giant Sainsbury, with their fourth-quarter trading figures due out on Thursday.

The pound continues to fall sharply against the dollar and the Euro, with the fall not being helped by a Bank of England (BOE) policymaker predicting that the UK could yet fall back into recession. On that piece of optimistic news the pound fell against the dollar, to $1.503. The pound fell against the Euro to 1.100. The prediction of the chance of double-dip recession taking place came from a BOE Monetary Policy Committee member Andrew Sentance.

On the FTSE, Banks were the biggest risers, with Barclays, Royal Bank of Scotland and Lloyds Banking Group all on the up.

Partially state owned, Lloyds announced a return to profitability in 2010 after two years of heavy losses. Their recovery was helped by lower than expected bad debts and tight cost controls. On the news shares in Lloyds Banking Group s rose sharply after the bank announced that they had succeeded in reserving losses of £6.3 billion ($9.5 billion) in 2009

Energy shares were also on a high with BP and Royal Dutch Shell both among the early risers.

Meanwhile the FTSE was continuing to rose, aided by news that Lloyds Banking Group said it would return to profitability in 2010

The FTSE 100 index finished for the weekend at 5,650.13, after hitting a 21-month closing peak on Wednesday.

On Wall Street before the weekend close, the Dow Jones was still on the rise, this time by 83 points to close on 10741.98. The NASDAQ took a little dip, after enjoying a good week. It fell four points to 2374.41.

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