Bankers Warn of EU Backlash

George Osborne has been warned by top bankers that anti EU rhetoric that pushes the UK further from the core of Europe could well harm the city.

Any new deal to be negotiated between the EU and the UK repatriating powers could risk retaliatory moves against the financial services particularly by France and Germany.

Any deterioration in trading relations with the EU may put pressure on international banks to move jobs and operations to mainland Europe damaging the UK.

One banker commented, “You have to be worried, generally, about Britain distancing itself from core Europe and what the ramifications are for the financial services sector”.

Other major business leaders, including the president of the CBI, have recently highlighted the dangers that any confrontation with the EU poses and long term damaging effect it may have on the UK’s economy.

Tim Corfield
Straightalkdebt

HOUSEHOLDS BRACED FOR 2013

Happy New Year! 

A survey carried out by Markit last month showed that 43% of households expect their finances to worsen this year against 24% who expect their finances to improve.

Without a strong rise in consumer spending it is unlikely there will be much real growth in 2013. Businesses held back investing in plant and machinery throughout 2012 and this is likely to continue if consumer spending remains subdued. 

Begbies Traynor have highlighted that around 140 high street shop chains could go out of business in 2013 without any increase in high street spending. These stores remain highly geared and will be seriously affected by the consumer continuing to bargain hunt and shop on-line.

A spokesman for Markit said ‘Households are bracing themselves for yet another year of squeezed personal finances in 2013. The vast majority of households anticipate that their financial wellbeing will either worsen or stagnate in 2013. With three quarters of all households not expecting any improvement in their finances, the latest survey suggests that domestic consumer demand will remain under pressure in the near term, especially since inflation perceptions remain elevated and job insecurities are prevalent’.

Tim Corfield