The UK Economy

As the afterglow of the 2012 London Olympics begins to fade, the UK capital is hoping to take advantage of the recent exposure to radically boost tourism.  Despite rumours that the Olympics turned people off from the idea of visiting London, Culture Secretary Jeremy Hunt claims the long-term tourism trends will be much more telling […]

After 15 years of operating the West Coast Rail Line from London to Scotland, Virgin Rail lost its government contract to FirstGroup (LSE:FGP).  Reports claim FirstGroup offered the Department for Transport £5.5 billion for the 13-year contract, outbidding Virgin Rail by £750 million.  Since the announcement, FirstGroup’s share price has dropped due to speculation that […]

The eurozone economy is now 0.4pc smaller than it was a year ago, whist the region contracted 0.2 pc in the second quarter, eurozone GDP figures released this morning show. Weak household consumption across the region (Germany excepted) and slower investment plans are to blame, according to analysts. In other euro crisis news, there are concerns […]

With the release of the official July 2012 Retail Price Index, rail passengers can now calculate how much more they will be paying on average for the same tickets.  Excluding Northern Ireland, where fares are not related to RPI, rail users will experience higher prices throughout the UK come 1 January 2013.  While RPI is […]

Global economic data released yesterday and this morning seems  to confirm Europe is inching ever-closer to the financial abyss. The European Central bank cut its predicted growth rate for next year from one per cent to  just 0.6 per cent yesterday, whilst June’s UK trade deficit was confirmed as the largest since records began, £4.3 bn. Trade […]

Markets fell sharply yesterday after the European Central Bank (ECB) disappointed investors, hoping for quick action to contain the region’s ongoing debt crisis. ECB president Mario Draghi, who last week pledged to do whatever it takes to save the euro, said the central bank would gear up to buy bonds on the open market, but […]

Expectation is mounting ahead of Thursday’s key meeting of European Central Bank (ECB) officials, following president Mario Draghi’s promise the institution would do “whatever it takes” to save the euro. The ECB’s options range from buying more bonds of troubled member states like Italy and Spain, to making more cheap cash available to banks, or […]

Antonis Samaras, Greece’s new Prime Minister, this morning described the challenges the Greek government now faces as “Herculean”. In a speech to parliament, Samaras also said the Greek economy may shrink by more than seven per cent this year. It would not return to growth until at least 2014. The economically troubled nation’s central bank had previously forecast...

Spain’s much-needing banking system rescue, worth €100 bn, is expected to be ratified by EU finance ministers later today, The deal was yesterday backed by German lawmakers – although chancellor Angela Merkel was forced to rely on opposition votes yet again. Continuing problems in the Eurozone were blamed for higher than expected government borrowing figures in the UK.  Britain...

The International Monetary Fund (IMF) has warned the worst of the euro crisis may be yet to come, as it cut its global growth forecast again this week. The organisation warned predicted growth rates could be slashed further if Europe’s policy makers do not act fast enough, and/or with enough force to stamp out the region’s on-going debt crisis. The […]