Young hardest hit as unemployment figures continue to rise

The Office for National Statistics announced yesterday what we all feared. That UK unemployment had increased to 7.6%, the highest in more than 10 years in the three months to May.

The jobless rate rose during that period by a record 281,000 to 2.38 million while the number of people claiming unemployment benefit increased by 23,800 in June to reach 1.56 million, less than analysts had forecast.

Unfortunately unemployment among young people continues to be especially acute, as employers are forced to restrict new starts to reduce costs during the continuing recession.

After recently acquiring the UK assets of Tiscali, the Italian telecoms company, the telecommunications division of Carphone Warehouse are reputedly examining the feasibility of becoming a television operator.

According to a statement from Charles Dunstone, Carphone’s chief executive, the company was studying whether their Talk -Talk phone and broadband business should expand Tiscali’s TV service.

Carphone completed their £236 million takeover deal for Tiscali, the Milan-listed telecoms company UK assets just last week. Included in the deal was Tiscali TV, a service that provides customers with Freeview channels and video-on-demand content.

The deal meant that as well as being Europe’s largest mobile phone retailer Carphone is now Britain’s second-largest broadband provider, only six years after the company launched their consumer fixed-line telecoms business.

On the FTSE the U.K.’s second-largest clothing retailer Next rose BY 3.5 percent to 1,667 pence on favourable analyst reports.

Meanwhile shares in the U.K.’s largest retailer of outdoor clothing and equipment Blacks Leisure Group Plc dropped by one percent to 49 pence despite their announcement that they were engaged in advanced talks to renew its existing working capital facility with Lloyds Banking Group Plc.

The FTSE 100’s recovery is gaining pace daily. Yesterday the guide increased by another 108.78 points to 4346.46. The FTSE 250 also continues its meteoric rise, jumping yesterday by 161.24 points to 7,572.33

The pound gained further ground on Wednesday against the dollar and the yen, whilst dropping against the Euro.

Pound/US dollar 1.642
Pound/Euro 1.1654
Pound/Japanese Yen 154.9105
Pound/Swiss Franc 1.7766

According to a report from the US Federal Reserve the US economy will continue to sink in 2009, but at a slower pace than previously estimated
Growth forecast for 2010 and 2011 were also increased.

However there are strong warnings that unemployment in the United States would reach 10%, is higher than earlier predictions.

Despite efforts to the contrary, US consumer prices rose in June at their fastest pace for nearly a year, prompted by higher petrol prices, according to a report from the US Department of Commerce.

The Consumer Price Index jumped by 0.7% last month, a shock after May’s conservative raise of 0.1%, and higher than the 0.6% increase analysts had predicted. The principal factor was the 17.5% increase in petrol prices.

Outside influences seem to play no part of what is going on Wall Street these last few days. There was no holding back the Dow Jones index as it rose by 256.72 points to 8616, 21 while the NASDAQ continued to scale the heights shattering the 1800 barrier to close on 1862.19 after a daily increase of 63.17 points.

Troubled US banking group, Citigroup is reportedly close to securing a confidential agreement with one of its main regulators. The agreement is designed to increase scrutiny within the bank and force it to repair financial, managerial and governance issues.

The deal has seemingly been discussed in recent weeks amid increased pressure on Citi from the Federal Deposit Insurance Corporation, and is expected be finalised in the near future.

China’s foreign exchange reserves, the world’s largest, have surpassed the $2 trillion (£1.2 trillion) mark according to a statement from the country’s central bank has said. Foreign currency reserves in the country have raised by a staggering 17.8% since June 2008 to a reach a record $2.13 trillion, making their currency holdings twice that of Japan who is the second largest holders of foreign currency in the World.

Commodity markets extended their advance helped by the dollar’s continuing weakness. Crude oil prices began to rise in advance of the latest US weekly inventories data gold climbed towards the $930 level

• 10 Economic Predictions for 2010 Before I begin, please do be aware I am not...
• Tips and Considerations to Buy a Hybrid Car Many people find themselves considering whether or not they should...
• Smoking Banned at Disney Soon, smoking will no longer be allowed at Walt Disney...

Tags: Economy, Employment, Financial News, Office for National Statistics, Stock Markets, UK Recession, UK unemployment figures, Unemployment