The International Monetary Fund (IMF) has downgraded its growth prospects for the world’s third largest economy. The Fund expects the Japanese economy to contract by 0.7% in 2011, much lower than its previous estimate of 1.4%. The IMF said it lowered its growth forecasts because of March’s earthquake and tsunami. The twin disasters caused billions [...]
Credit rating agency Moody’s has once again cut Greece’s credit rating by three notches into junk territory. The measures come after Moody’s said the country has a 50:50 chance of defaulting on its debts in the next five years. Moody’s said: “The first trigger for today’s downgrade is Moody’s view that Greece is increasingly likely [...]
According to statistics agency Eurostat, Greece’s public deficit reached 10.5% of GDP at the end of 2010 – higher than the 9.5% forecast. The Greek finance ministry has previously attributed the larger deficit to a deeper than expected recession, which cut into tax revenues and social security contributions. The figures suggest the country continues to [...]
Standard & Poor’s (S&P) has today lowered the US’ top notch credit rating from stable to negative – suggesting that the rating could be cut within the next two years. The rating agency believes that the Democrats and Republicans will not be able to agree a plan to cut the spiralling US deficit. President Barack [...]
Moody’s Investors Service has today downgraded Portugal’s debt rating, for the second time in less than a month, by one notch to Baa1 from A3. Moody’s also warned that a further downgrade is possible as a bailout becomes increasingly likely for the debt-laden country. It said the downgrade was “driven primarily by increased political, budgetary [...]
A report by the Consumer Credit Counselling Service (CCCS) has revealed that many families could be pushed into debt in the coming months. In its 2010 Statistical Yearbook, the charity said higher rate tax thresholds, lower tax credits and higher interest rates could result in thousands of families facing severe debt problems. Families with three [...]
Japan’s Nikkei 225 index fell further today, losing 10.6% to 8,605 – diving even further below the crucially important 10,000 mark. Toyota and Sony were yet again hit by heavy selling after being forced to cease production throughout Japan. The country’s Prime Minister, Naoto Kan, said radiation levels at a nuclear plant on the northeast [...]
The Cabinet Office has today revealed the Japanese economy contracted by 1.3% in the October to December period – slightly worse than the first estimate of 1.1%. Today’s estimate is the second reading, a third and final estimate will be available next month. The downward revision was attributed to an expired Government incentive for low-emission [...]
The Trade Ministry has today reported a further rise in Japanese industrial output. Output grew 2.4% in January on a monthly basis – its third consecutive rise and compares with a 3.3% increase in December. According to the Ministry, growth was fuelled by demand for transport equipment, machinery and metals. However, January’s figure was slightly [...]
The Ministry of Finance has today revealed Japan posted its first trade deficit since March 2009 in January, due to slower exports. The world’s third largest economy posted a trade deficit of 471.42 billion yen (£3.52 billion) in January, with exports rising just 1.4% – analysts had forecast a rise of closer to 7%. Meanwhile, [...]
Japan’s industrial production rose in December by 3.1% – beating expectations of a 2.9% gain. The rise also represented the strongest in 11 months – boosted by global demand for the nation’s goods. As a result, The Ministry of Economy, Trade and Industry said production is now “showing signs of an upward movement” compared with [...]
Standard & Poor’s (S&P) has today cut Japan’s credit rating from AA to AA-, the first time in nine years such measures have been taken. The credit rating agency cited the country’s mounting debt worries for the downgrade. Japan’s debt currently stands at almost twice the country’s annual economic output – this compares with 136.8% [...]
Despite being one of the first major economies to emerge from recession – in the second quarter of 2009 – Japan faces many risks to its recovery. Not only is it battling with deflation, it struggling with a strong yen, which continues to weaken demand for exports and threatens the economic recovery. A short period [...]
Ratings agency Moody’s today announced it has put Spanish bonds on watch for a possible downgrade due to its high funding requirements. However, the agency said it does not expect Spain to turn to the EU fund for a bailout. In a statement, Moody’s lead analyst on Spain Kathrin Muehlbronner, said: “Moody’s does not believe [...]
The euro is continuing its slide against the US dollar over debt concerns in the euro zone. The single currency is falling as investors are nervous that the debt crisis could spread to weaker economies, such as Portugal and Spain – despite reassurances from both countries that the recent Irish bailout will stabilise the euro [...]
Official figures today showed the Japanese economy continues to battle with deflation. Figures revealed Japanese core consumer prices fell 0.6% in October compared with a year ago – representing the 20th consecutive monthly decline that the economy has been in deflation. Last month, the Bank of Japan cut interest rates to almost zero. The move [...]
Official figures today showed Italian economic growth slowed in the July to September period. Italy’s statistics office, Istat, said the economy expanded by 0.2% in the third quarter, slowing from the 0.5% growth recorded in the second quarter. The growth rate was half the 0.4% expected by analysts. On an annual basis, meanwhile, the economy [...]
Phone fraudsters stealing bank card pins
Fraudsters using a phone scam to trick bank card holders into revealing their pin numbers stole £750,000 in the first four months of this year. This is the same amount stolen through this scam in the whole of last year. The fraudster telephones a bank customer, often someone elderly or vulnerable, telling them that their [...]
FSA rules out ban on interest-only mortgages
Speculation that the Financial Services Authority would ban interest-only mortgages as part of its Mortgage Market Review has proved to be unfounded. However, lenders will be required to monitor the performance of the investment product taken out by the customer to repay the mortgage at the end of its term. Investments are performing poorly because [...]
Bank of England may end free in-credit banking
A director of the Bank of England has warned that official intervention could be considered to end the ‘dangerous myth of free in-credit banking’. Andrew Bailey has already spoken out against free banking in relation to the mis-selling of financial products. In a speech made available to media, he reiterated his concern, saying that it [...]
Bank of England votes against more economic stimulus
The Bank of England voted against a further round of quantitative easing, at its latest Monetary Policy Committee (MPC) meeting. Just one member, David Miles, voted for further asset purchase to encourage growth in the UK economy, while the other eight members voted to keep the Bank’s quantitative easing programme steady at £325bn. The minutes [...]
Catalogue debt growing says helpline
Calls from people concerned about their debts with mail order catalogues accounted for more than 12 per cent of all calls received by National Debtline last year, compared with just 8 per cent in 2007. More people were concerned about catalogue debt than about payday loans, mortgage or rent, according to the Money Advice Trust [...]
Homeserve faces mis-selling investigation
HomeServe, which provides emergency insurance cover and domestic repairs to households in the UK, is to be investigated by the Financial Services Authority (FSA). Issues over the possible mis-selling of household emergency policies were uncovered last October during an internal review at the Walsall-based company. Homeserve’s call centre staff were found to be selling ‘Complete [...]
OFT warns Wonga over debt collection methods
Payday loan company Wonga used aggressive and misleading methods to collect debts from customers, the Office of Fair Trading (OFT) has found. Wonga sent letter and emails to certain customers suggesting they had committed fraud and threatening to report them to the police if they did not act in the way Wonga suggested. The company [...]
NS&I re-launches investment account
National Savings & Investments (NS&I) has re-launched its Investment Account at a higher interest rate than it previously offered. The account now offers 0.75 per cent before tax, compared with between 0.2 and 0.3 per cent previously, depending on the account balance. Deposits and withdrawals on the account can no longer be made at Post [...]
Rightmove reports property downsizing trend
Two in five property owners planning to sell in the next year are planning to ‘trade down’, compared with one in four who plan to ‘trade up’. A survey by property website Rightmove found that moving to a smaller home is the main reason for moving in nine out of the ten regions in the [...]
More people failing to save for retirement
The proportion of people with no pension savings has grown from 20 per cent to 22 per cent over the past year, according to Scottish Widows’ latest survey. The pension provider surveyed 5,200 adults in the UK, aged 30 or over, and earning at least £10,000 a year, for its annual review of pensions. Ian [...]
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