Category: Credit Crunch
Labour’s Spending Causes More Harm Than Good
Labour’s increased spending after the credit crunch actually harmed the economy rather than boosting it, according to a centre-right think tank. A report by the Institute of Economic Affairs found that stimulus measures pursued by Western governments in response to the economic crisis did not work. Shadow Chancellor Ed Balls has repeatedly called on the [...]
Analysts Are Counting The Cost Of Eurozone Shrinkage
Economists, banks and even punters in bookmakers are studying more and more seriously scenarios involving the collapse of the eurozone. Maybe not its total evaporation, but certainly shrinkage with peripheral or weak countries falling off the currency’s map and in all cases, according to the experts, with a heavy price to pay. Analysts agree that [...]
CITIGROUP To Cut 4,500 Jobs Globally
CITIGROUP is to cut 4,500 jobs globally, with its London capital markets division shedding dozens of staff. Speaking in New York late on Tuesday, chief executive Vikram Pandit said that the bank has already made $1.4bn in savings this year but needs to respond to slow markets by reducing costs further. City A.M. understands that [...]
Moody’s Warns France Of Possible Credit Rating Risk
An increase in French government borrowing costs, slowing growth and the eurozone debt crisis threaten the country’s top credit-rating, Moody’s ratings agency warned on Monday, adding to market jitters. France is fighting desperately to retain its ‘triple-A’ credit status and has slashed spending and tightened up on tax revenues in an effort to stabilise its [...]
Borrower’s Rates Are Set To Increase – Home Owners Urged To Act Now
The only thing we can be certain of right now is that we have an uncertain financial future. But with the eurozone crisis and concerns that we could face a second credit crunch, do homeowners need to act now before it is too late? Many aspects of the property and mortgage market have been encouraging [...]
British Banks Struggles To Raise Funds For Loans
Fears of a further credit crunch intensified last night after a stark warning that British banks are struggling to raise money for loans to households and businesses. The Bank of England said the crisis in the eurozone and slowdown in the global economy have deprived UK lenders of access to vital funds. Britain has a [...]
IMF – Hong Kong Faces Potential Recession If European Crisis Continues
Hong Kong’s “rapid” credit growth has increased the risk that banks make bad loans as the city faces a potential recession if the European crisis deepens, the International Monetary Fund said. “Credit has been growing at an extraordinary pace, particularly for loans in foreign currency,” the IMF said in a report released today. Such growth [...]
Bank Woes – Job Cuts For HSBC And RBS Employees As Profits Dwindles.
The Euro debt crisis appears to be forcing banks to accelerate efficiency savings as profits from investment banking dwindles. The Telegraph reports on job cuts at two of the UK’s leviathon banks, HSBC and RBS. HSBC has long made it clear that thousands of jobs would go, now according to the Telegraph we’re seeing the [...]
EU Raises €3bn From Bond Market To Help Fund Bailout
Europe’s rescue fund has raised €3bn in the bond markets to fund the next tranche of Ireland’s bailout. The money will be handed over to the Government on Thursday. The European Financial Stability Facility (EFSF) was forced to pay slightly more to lenders to make the funds available because of the eurozone’s worsening debt crisis. [...]
Euro zone – The Crisis Continues
With Europe’s banks accounting for almost two thirds of the foreign lending to global emerging markets, the fear is their retrenchment could drain those economies set to provide about 70 percent of world growth next year. This latest so-called “negative feedback loop” from the euro zone sovereign debt crisis is yet another potentially damaging blow [...]
