Boeing Share Discussion Threads

[westcoastrich] 04/12/2008 23:19

In a bleak statement, the Bank said today that the downturn in Britain's economy had "gathered pace" "Consumer spending and business investment have stalled, while residential investment [that is, housebuilding] has continued to fall," it said.

The MPC noted that other leading world economies were also floundering, while the recession was being magnified by the vicious squeeze on lending conditions by banks. "Money and credit conditions remain extremely difficult," it said.

The MPC decision came as other central banks around the world also rushed to shore-up their economies with a global wave of drastic rate cuts.

The European Central Bank today cut borrowing costs by three-quarters of a point to 2.5 per cent today, in a bigger move than the half-point cut that economists had expected.

Rates were also cut today across other developed economies.Sweden's central bank cut its key rate this morning by a record 1.75points, to 2 per cent, in its the third reduction since October, and the biggest since 1992. New Zealand announced a record cut of 1.50 points, bringing its rate down to a five-year low of 5 per cent, and acknowledging that further cuts would probably be necessary. Indonesia made a surprise quarter-point cut to its rate, which takes the interest rate to 9.25 per cent. The Bank of Thailand cut rates by a full percentage point points to 2.75 per cent. The Reserve Bank of Australia surprised markets with a larger-than-anticipated 100 basis-point cut to 4.25 per cent on Tuesday.

Pressure on the MPC to follow last month's steep reduction in Bank rate with another swingeing reduction mounted this week after another spate of dire figures that suggested that the economy is shrinking at an accelerating pace as recession tightens its grip

[whiterussians] 04/12/2008 12:05

We do need another cut before the january sales

[gsands] 04/12/2008 10:15

Looks like the BoE are on the back foot. They should have been cutting rates back in the summer, but instead they got duped into thinking inflation was the problem by a load of speculators and spivs around the world going long on oil and pushing the price of it (and other commodities) through the roof.

What a shambles.

[westcoastrich] 04/12/2008 08:38

0% base rates soon

[westcoastrich] 03/12/2008 22:02

The Bank of England will cut its benchmark interest rate by 1 percentage point to 2 percent tomorrow, according to the median forecast of 60 analysts surveyed by Bloomberg. The ECB may announce a 50 basis-point cut, according to a survey.

[westcoastrich] 03/12/2008 07:40

The UK job market weakened rapidly in November as permanent placements declined at a record rate, a new survey from Markit Economics suggests.

The drop in permanent and temporary jobs was faster than at any point in the survey's 11-year history.

The figures provide evidence of the rapid slowdown in the UK economy and suggest unemployment rates will rise.

"The UK jobs market is heading downhill at breakneck speed," said Mike Stevens at KPMG, a sponsor of the survey.

The report also showed record survey falls in permanent salaries and temporary staff pay rates.

"Employers in almost all sectors have drastically cut recruitment plans and are shedding contract and temporary staff as fast as they can," Mr Stevens added.

Permanent placements declined for an eighth consecutive month in November, with the rate of contraction accelerating to a new survey record.

Temporary and contract staff billings also fell by record levels, as did demand for permanent and temporary staff.

[westcoastrich] 01/12/2008 20:11

UK----------------------> toilet

Sterling plunges against dollar

The pound has been battered by fears of a prolonged recession in the UK
Sterling has fallen sharply against the dollar as yet more bad economic data points towards a prolonged recession and further interest rate cuts.

The pound was down 5.2 cents to $1.486, its largest one day fall in percentage terms since sterling crashed out of the Exchange Rate Mechanism (ERM) in 1992.

[westcoastrich] 01/12/2008 17:31

HSBC confirms 500 UK jobs to go

HSBC announced worldwide job cuts earlier this year.
Banking group HSBC has confirmed it is cutting 500 jobs across the UK.

HSBC said the move followed "a review of the business and current economic conditions". None of the affected positions are customer facing.

The announcement comes after HSBC said in September that it was cutting 1,100 jobs worldwide because of the continuing global financial turmoil.

Trade union Unite accused HSBC of "using the economic downturn as an excuse to make job losses".

HSBC said the latest job cuts represented less than 1% of its 58,000 UK workforce.

'Deeply regret'

"In the past two months we have looked hard at our business, focussing on removing duplication, managing costs and devoting resources to areas that offer the most potential for growth," said HSBC UK managing director Paul Thurston.

Unite is appalled that this news has been delivered so close to Christmas

Unite joint leader Derek Simpson

"We deeply regret taking this step, but we consider it essential to ensure our business is operating as efficiently as possible and that we are best placed to deal with the economic downturn and maintain our levels of customer service."

[moob] 30/11/2008 13:15

'Close to 3m unemployed' by 2010

Businesses are struggling as the credit crunch bites.
The UK's recession will be tougher and longer than first thought, the business group CBI has warned.

It estimates that the economy will shrink by 1.7% in 2009, a dramatic downgrade from the forecast of 0.3% growth the CBI gave in September.

The group added that unemployment could peak at close to 2.9 million by 2010, up from 1.8 million at present.

[moob] 30/11/2008 08:47

City predicts further 1% cut in base rate

Economists say Monetary Policy Committee will act to get banks to lend to businesses and each other

By Margareta Pagano, Business Editor
Sunday, 30 November 2008

Economists predict that Mervyn King, the Governor of the Bank, and his MPC team will sanction a cut of at least a half a percent to 2.5 per cent on Thursday. Mr King hinted at last week's cross-party Treasury Select Committee that further reductions in interest rates would be necessary to ensure that the banks pass on the recent falls in full. "We may need to cut the rate more than we would otherwise have done," he said.

More than 60 economists polled last week in a survey forecast that rates would come down by a full 1 per cent, with one predicting they could fall by as much as 2.5 per cent. Base rates were cut in October by 1.5 per cent in a dramatic attempt to loosen monetary policy and persuade banks to start lending again. But lending remains stubbornly tight, as banks are still nervous about trading with each other as well as the corporate sector.

[moob] 30/11/2008 08:11

Bank of England weighs rate cut to 2%David Smith, Economics Editor
THE Bank of England and the European Central Bank are set to cut interest rates significantly this week as Britain and Europe dive deeper into recession.

The Bank, which has cut its rates by two percentage points in the past two months alone, surprising the markets with a 1.5-point cut earlier this month, is urged by economists to cut by a further point this week.

The "shadow" monetary policy committee, which meets under the auspices of the Institute of Economic Affairs, votes for a full-point reduction in Bank rate to 2%. This would be the lowest level since 1951, equalling the lowest in the Bank's 314-year history. It would also mark the steepest ever drop in rates.

One member, Patrick Minford, wants a 1.5-point cut, warning of "extreme credit tightness" in the economy. Four favour a full-point, two think it should be a half, and two opt for no change.

Related Links
House price fall slows after interest rate cut
Bank chief hints at more interest rate cuts
Roger Bootle, economic adviser to Deloitte, who wants a full-point cut, said: "The Bank must not make the Japanese mistake of taking action too late, when deflationary expectations have set in."

[westcoastrich] 29/11/2008 10:22

UK BUST BY SPRING, CAP IN HAND TO IMF

[westcoastrich] 28/11/2008 18:31

VAT cut to take 53 pence off a £50 shopping basket

Published: 24/11/08



Analysis from the advisory firm Deloitte suggests that assuming that the full 2.5% cut in VAT announced in today's Pre-Budget Report is passed on to consumers it will take just 53p off a typical £50 shopping basket. Based on a typical supermarket shopping basket the total price would go from £50 to £49.47. This reflects the fact that lots of food items which do not attract VAT would be part of an average shopping basket.

Daniel Lyons, Indirect Tax Partner at Deloitte, said: "It is difficult to see how this measure is going to encourage increased spending when the amount of money being saved by the consumer is likely to be so small."

The 2.5% cut in VAT would also result in relatively small reductions in the price of higher value consumer goods. For example, a £550 flat-screen TV would cost £11.62 less with the new cost being £538.38. Shoppers buying a new £300 washing machine would save £6.38 with the new cost being £293.62. Somebody wishing to buy a new Toyota Prius would save around £375 on a £15,000 car.

Lyons added: "Even on big-ticket items, it is questionable whether the level of savings would be high enough as to attract new purchases."

[westcoastrich] 27/11/2008 22:32

U.K. Credit Cards to Give Borrowers Extra 60 Days to Pay
By ALISTAIR MACDONALDArticle

LONDON -- The U.K. government has extracted a pledge from credit-card issuers to give struggling borrowers an extra 60 days to pay, in its latest effort to ease the impact of the financial crisis on the economy.

The move, which comes days after the government announced a £20 billion ($30.8 billion) economic stimulus package, is aimed at giving borrowers extra breathing room to restructure their debts, the government said.

....


Wonder if this will pply to store cards? Bad debts must be runnin high

[westcoastrich] 27/11/2008 18:47

Bank hints at further rate cuts

Expectations of another rate cut have risen after the release of minutes from the Bank of England meeting at which rates were lowered from 4.5% to 3%.

The Bank's nine-member committee voted unanimously for the cut on 6 November, but considered a bigger one.

The Bank's own calculations showed that a cut to 2.5%, or even lower, would be needed to stop inflation falling too far below its target next year.

But the rate-setters decided such a big cut would come as too much of a shock.


They just procrastinate......