UK public begin to grow impatient for results as recovery slows down

July 14th, 2009 by admin | Filed under Daily News, Recession.

financial news A recent poll has revealed that not only Gordon Brown but most of the other European leaders are losing popularity as the patience of their voters is running out, due to the lack of any real and consistent recovery from the crisis. On the other in the US, support for President Barack Obama’s government has risen despite the fact that over the ocean the recovery there appears also to be beginning to stutter.

According to the poll, around fifty percent of UK respondents believe interest rate cuts and government spending to boost the economy have not produced the desired results, and the sacrifices that they have been asked to make are not being reflected by the results achieved by Brown and his government.

UK consumer and retail prices figures for are due to be released today, with predictions that the consumer price index rate will slow slightly to 1.8 per cent, from 2.2 percent in May. The annual index is expected to fall to 1.5 per cent for June 2009.

U.S. Treasury Secretary Timothy Geithner, currently in the UK has met U.K. Prime Minister Gordon Brown and his Chancellor of the Exchequer Alistair Darling to discuss the details of U.S. and U.K. efforts to tackle the ongoing financial crisis.

Geithner on intends to hold meetings across Europe focusing on a broad range of economic and financial issues ahead of a key international finance meeting to be held in the United States in September.

A sure sign that the commercial property market is on the move, is the news that large UK property management companies are preparing to take advantage of the new opportunities that may be around.

Land Securities, one of the largest commercial property owners in the UK, have appointed a new team to re-assess the UK property scene. This comes ahead of a management statement on Wednesday expected to strike a far more positive tone than before the market collapse in 2007.

At a specially convened members meeting due to be held on July 21, the day before the company’s annual meeting, Network Rail members are expected to call for a major change in the group’s corporate management. The group’s findings on reforming Network Rail’s running will be presented before the company’s new chairman, Rick Haythornthwaite, when it is also likely that a protest vote on this year’s bonus for directors could be another hot potato.

The men’s branded suit specialist Moss Bros have announced their plans is to expand the number of stores under their label by up to 40 percent in the near future. They intend to take advantage of the financial concessions offered by cash strapped are increasingly willing to offer, and have gone as far as earmarking 40 “preferred locations” for opening new Moss Bros outlets. The company has observed an increasing trend that company employees especially in the services sector are investing more on top level clothing to impress their bosses, other current or potential. Unit sales of suits at the long established clothing chain have jumped by 27 percent in the last six months.

The troubled music label EMI, are looking to receive a much needed cash injection of up to £300 million from the US bank Citigroup.. In the event that Citigroup refuses to accept the terms of the deal, the future could be uncertain for EMI, whose debt folio is around £2.5 billion pounds. In September 2007, the Terra Firma private equity group owned by city financier Guy Hands paid £2.4 billion for the music giant.

Sheffield-based office supplier Vasanta is on the brink of securing its future through a new refinancing deal. The group, hit by the withdrawal of credit insurance amid the economic crisis, currently employs 1,500 people although it remains unclear whether the backing will be sufficient to secure the jobs of all the group’s employees. Vasanta, owned by the private equity firm Electra Partners, revealed in its half-year results in May that it had written off £28 million pounds.

On Monday, the FTSE 100 made a recovery from last week’s losses, closing the day up 74, 96 points to 4202.13.
The FTSE 250 also rose by 94.37 points to end the day on 7278.80
On the money markets yesterday, the pound rose against the dollar and fell sharply against the Euro, to reach almost parity between the two major currencies.
Pound/US dollar 1.624
Pound/Euro 1.1625
Pound/Japanese Yen 150.9225
Pound/Swiss Franc 1.7604.

Another redline was crossed yesterday in the US, with the news that their budget deficit has moved above $1 trillion (£616bn) for the first time, and with three months of the financial year remaining that figure is likely to rise. The deficit has been largely caused by the government stepped up spending to counter the recession, as well as the bailout of financial institutions. This combination has taken a huge chunk out of already straining government finances and has been exacerbated by continuously depleted tax revenues and increased levels of unemployment benefit.

The figure because especially stark when compared with the $455 billion budget deficit accrued in the US for the whole 2007/8 financial year
Despite that sobering news, the Dow Jones rose 185.16 points to 8331.68 while the NASDAQ continued its steady comeback, climbing 37.18 points to 1793.21.