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economic situation is dire


ianrobo1

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S&P have downgraded our economic rating by two ratings, from AAA to AA, completely skipping AA+. We don't have a single AAA rating anymore.

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John Llewellyn, founder of Llewellyn consulting and a former chief economist of the Organisation for Economic Cooperation and Development, said the UK was heading into recession at a time when its economy was not fixed and the BoE appeared to be the only functioning authority.

“We are more worried — for the UK, though importantly not for the world — than we were in 2008 or any other post-World War Two crisis,” he said. “The scale of all this will start to unfold in coming weeks.”

 

More project fear. :rolleyes:

Edited by Davkaus
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3 minutes ago, Chindie said:

Services sector has taken a kicking, interest rate cut apparently inevitable, recession on the way again perhaps...

Didn't the economy grow more than expected on the 3 months up to Brexit vote?

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3 minutes ago, Genie said:

Didn't the economy grow more than expected on the 3 months up to Brexit vote?

I've no idea. If it did it might indicate confidence that 'Brexit' wouldn't happen.

And then it did.

Certainly construction manufacturing and services appear to have taken a hit post the decision. I work in the finance industry and I've lost count of the number of emails from partner businesses about the impact of Brexit, and all of them basically say 'It's going to be grim, but we have to work with it'. They're seeing the early signs that usually mean recession is on the way and it's also in their interest to try to work out what challenges are on their way anyway.

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Recession is usually defined as 2 consecutive quarters of negative growth, so whilst it's too early to say it's happened it could certainly be on the cards.

And yes we are (and will continue) to see shockwaves from the decision, it isn't good whatever way you take it. Services have had a bad month, the worst since the financial crash, and construction is taking a battering.

That ain't good.

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4 minutes ago, Chindie said:

Recession is usually defined as 2 consecutive quarters of negative growth, so whilst it's too early to say it's happened it could certainly be on the cards.

And yes we are (and will continue) to see shockwaves from the decision, it isn't good whatever way you take it. Services have had a bad month, the worst since the financial crash, and construction is taking a battering.

That ain't good.

I think we will see a drop a few times. When the decision is made to actually invoke article 50, 2 years of uncertainty with positive  spikes as trade deals are announced and then a drop when we actually leave. 

Good work everyone. 

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2 minutes ago, Nicho said:

I think we will see a drop a few times. When the decision is made to actually invoke article 50, 2 years of uncertainty with positive  spikes as trade deals are announced and then a drop when we actually leave. 

Good work everyone. 

Pretty much as I think it'll go. Sooner or later we'll see a declining trend with the uncertainty punctuated with spikes around 'good news' or reactions to people seeing an opportunity in the doldrums, Article 50 will catalyse it one way or the other briefly, and then revert to downward trend with spikes for deals.

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A couple of our Clients have decided to shelve investment plans and tread water for a few months to see how things pan out.

It doesn't take a genius to work out how things will pan out if a significant number of businesses pause to see how things pan out.

Ah well, at least pensions are triple locked.

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Seeing Mark Carney explain the decisions of the BoE with enough spin to make a Chancellor blush, must end any pretence that he is independent.

He was asked some tough questions on Channel 4 news, which he avoided answering.

The most revolting thing was the way, after he had stonewalled and lied, he gave the interviewer Helia Ibrahimi a sneaky wink, like some creepy patronising old git.

It was a vile patronising sexist act and totally unacceptable.

She should demand an apology.

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10 minutes ago, MakemineVanilla said:

Seeing Mark Carney explain the decisions of the BoE with enough spin to make a Chancellor blush, must end any pretence that he is independent.

He was asked some tough questions on Channel 4 news, which he avoided answering.

The most revolting thing was the way, after he had stonewalled and lied, he gave the interviewer Helia Ibrahimi a sneaky wink, like some creepy patronising old git.

It was a vile patronising sexist act and totally unacceptable.

She should demand an apology.

More QE and lower interest rates are about the only thing BOE can do at this stage, unlikely that they are going to go unconventional and rate rises make absolutely no sense.

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6 hours ago, Dr_Pangloss said:

More QE and lower interest rates are about the only thing BOE can do at this stage, unlikely that they are going to go unconventional and rate rises make absolutely no sense.

negative was unconventional once upon a time also... gotta protect the asset values of the 1%

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15 minutes ago, TrentVilla said:

 

Will be interesting to see what happens in the mortgage market.

mortgage rates will go down 0.1% saving £12 a month

this will persuade sellers and estate agents that houses can now be £1,000 more expensive

 

remember, interest rates never rise so it's ok to go to your absolute max during an historic low

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