Greg Bell

Greg Bell's Economic Round-Up

The squeeze on consumer spending has started to come through with the economy contracting by 0.2 percent in the last quarter prompting the newspapers to again begin talk of a double dip recession.

My comment on this is simple, the UK is in recession and the mixed economic message is a major contributory factor.

The 50 percent tax is short term gain, long term pain with those in the higher rate band having to stomach the removal of capital allowances as well this year.

£75 billion more to go into quantitative easing - Greg Bell's verdict

Today the Bank of England Monetary Policy Committee (MPC) announced the decision to launch a further round of quantitative easing to try and kick start the UK economy. The announcement of a further £75bn to be used to purchase government bonds over the next 4 months comes on the back of £200bn already pledged.

How will the banks be impacted by the reforms?

The Vickers report on the state of the UK banking market has been well leaked ahead of publication to try and soften the blow to the markets and stop any material shorting of bank stock following publication. On a day that many held their breath, the net result on share price was unspectacular, but which of the clearing banks will feel the brunt of the banking reform the most?

The blind leading the blind

In the latest report from RSM Tenon (reported on the SBF blog), it was quoted that 1 in 10 SME's don’t know where to go for business advice and 13% would consider their peers ahead of seeking any professional help.

In a time where advice is available online in abundance, few would turn to the internet in favour of a friend, family member or business acquaintance instead.

Greg Bell's Economic Blog

Retail sales are again down in May eclipsing the surge in sales in April with a 1.1% gain followed by a sobering 1.4% reduction in May. The net effect will be for retailers to again dust down the SALE banners which is good news for consumers but will only serve to bring forward purchases at lower values that will leave a hole in future sales projections.

The cost of food and energy continues to drive inflation that is keeping the economy in positive growth territory.