Loans and Finance

Loans and Finance

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News and information about loans, money, debt, finance and business issues.

Tuesday, April 25, 2017

Government Borrowing Falls

The Telegraph reports that the Government borrowed £52bn in the last financial year, a fall of £20bn compared to the year before, as the long struggle to eliminate the deficit moved closer towards its goal. That amounts to 2.6pc of GDP, the lowest level of borrowing since 2007-08.

The fall in the deficit is bigger than analysts forecast a year ago by the Office for Budget Responsibility.

For why are the figures better than forecast?

Strong economic growth, unexpected by the fear mongers!

Monday, April 24, 2017

Don't Dither wrt Financial Matters


Whatever the outcome of the election, and whoever ends up trying to "manage" events, nature will take its course and the politicians will prove powerless to stop it.

Thus make your financial decisions without delay and procrastination.

Don't dither and don't look for excuses for delay!

Friday, April 21, 2017

Quarterly Retail Sales Fall - Monthly Sales Rise

UK retail sales posted their biggest quarterly fall in seven years in March, as the prices of everyday goods continued to climb.

Sales were down 1.4% year-on-year on a quarterly basis, and down 1.8% compared with February 2017, according to the Office for National Statistics (ONS).

In March 2017, the quantity bought in the retail industry is estimated to have increased by 1.7% compared with March 2016 and decreased by 1.8% compared with February 2017; decreases are seen across the four main store types.

Average store prices (including fuel) increased by 3.3% on the year, the largest growth since March 2012; the largest contribution came from petrol stations, where year-on-year average prices rose by 16.4%.

Online sales (excluding automotive fuel) increased year-on-year by 19.5% and by 0.5% on the month, accounting for approximately 15.5% of all retail spending.

Wednesday, April 19, 2017

US Currency Monitoring

Wednesday, April 12, 2017

Facebook Down For Virgin Media Customers In UK

Those of you on Virgin Media will have been unable to access Facebook for at least the last two hours, as there is a technical glitch which Virgin have yet to resolve.

Monday, April 10, 2017

LIBOR Rigging

Following the acquittal of two former Barclay's traders last week, Panorama asks if the right people are being blamed for what has been called the biggest financial fix of all time.

Piecing together explosive new evidence, which calls into question the safety of other convictions, Panorama reporter Andy Verity reveals that manipulation of the world's most important interest rate, Libor, was allowed and even ordered by people at the highest levels of the financial establishment.

A secret recording that implicates the Bank of England in Libor rigging has been uncovered by BBC Panorama. 

The 2008 recording adds to evidence the central bank repeatedly pressured commercial banks during the financial crisis to push their Libor rates down.

In the recording, a senior Barclays manager, Mark Dearlove, instructs Libor submitter Peter Johnson, to lower his Libor rates.

He tells him: "The bottom line is you're going to absolutely hate this... but we've had some very serious pressure from the UK government and the Bank of England about pushing our Libors lower."
Mr Johnson objects, saying that this would mean breaking the rules for setting Libor, which required him to put in rates based only on the cost of borrowing cash.

Mr Johnson says: "So I'll push them below a realistic level of where I think I can get money?"

His boss Mr Dearlove replies: "The fact of the matter is we've got the Bank of England, all sorts of people involved in the whole thing... I am as reluctant as you are... these guys have just turned around and said just do it."

It is of course convenient for banks to blame others (eg the Bank of England).

Wednesday, April 05, 2017

The End of The Paper Fiver

Meanwhile in Sweden:

Tuesday, April 04, 2017

Greek Bailout Talks Grind To a Halt


Last week I warned people not to believe the hype over the alleged progress and agreement on the Greek bailout talks.

As can be seen, I was right to issue that warning.

Greece is unwilling and incapable of implementing the reforms that the Quadriga are demanding.

Wednesday, March 29, 2017

Greek Creditors Allegedly Reach Preliminary Agreement


How many times have we heard this before?

Don't believe the hype!

Tuesday, March 28, 2017

#Grexit Looms Large Again - Greek Banks Haemorrhaging Cash

Greece’s beleaguered banking system has taken a fresh hit from the country’s shaky bailout talks this year, registering its worst deposit outflows since the height of its debt crisis in the summer of 2015.

The FT reports that the latest figures from the European Central Bank showed households and businesses pulled €1.1bn from the country’s lenders last month, moderating from the €1.7bn withdrawn at the start of the year but marking the worst two-monthly outflow since the country was bought to the brink of a eurozone exit nearly two years ago.

For why?

There is no sign of agreement between Greece and the Quadriga wrt the bailout. Indeed there is no sign of agreement between the IMF and other members of the Quadriga over the terms of the bailout!


Sunday, March 26, 2017

Europe Isn't Working

Thursday, March 23, 2017

Retail Sales Rise

Retail sales last month rose 3.7% compared with February of 2016, the Office for National Statistics said, and were up 1.4% on January’s sales.

However, many in the media are looking at the three month data and reporting a decline of 1.4%. 

Tuesday, March 21, 2017

Inflation Hits 2.3%

Inflation jumped to it highest level for three and a half years in February. Average prices rose by 2.3pc in February, from 1.8pc in January. This was higher than the 2.1pc predicted by economists, and was driven by price rises for food and fuel and the weakened pound.

Right on cue the siren sound of people calling for an increase in rates. Not so fast though, any rise in rates will adversely hit economic activity and increase unemployment.

There will be no rush to raise rates anytime soon!