A case of slowdown in manufacturing, construction, car and high street businesses indicate the economy’s slowdown.

According to analysts, the UK expanded by 0.6 per cent between April and June. The growth was soon short-lived as the construction, car and high street businesses report with negative signals on growth.

UK Chancellor Philip Hammond said the UK needed to enter ‘divorce’ negotiations with the EU at a ‘position of strength’. He had also warned about the current slowdown.

“Those negotiations will signal the beginning of a period of adjustment, but I am confident we have the tools to manage the challenges ahead, and along with the Bank of England, this government will take whatever action is necessary to support our economy and maintain business and consumer confidence,” he said.

The Pound Sterling is still taking a pounding worldwide despite growth figures. Borrowing may also receive a cut in interest rates as part of the quantitative easing money creation program and boosting lending to households and businesses for better consumer activity.

the SMMT’s chief executive, Mike Hawes, said the outlook for UK car manufacturing was uncertain now that Britain had opted to pursue a future outside the EU.

“The latest increase in production output is the result of investment decisions made over a number of years, well before the referendum was even a prospect,” he said.

Warning that this success was linked to membership of the single market, he said: “These decisions were based on many factors but primarily on tariff-free access to the single market, economic stability and record levels of productivity from a highly skilled workforce. To ensure the sector’s continued growth, and with it the thousands of jobs it supports, these must be priorities in future negotiations.”


UK Prime Minister David Cameron’s administration had set the EU referendum the last two years. However, he doesn’t call it as an “irresponsible” act. He stated that he had “good reason” to allow it to push through.

According to Cameron, it wasn’t reasonable to hold a country in an organisation that is against its will.

“I absolutely think that if we vote to leave it’ll have these severe economic consequences, and it’s not just the Treasury that is saying that – the IMF, OECD, and Bank of England have all said it,” he said.

“In terms of holding the referendum, it is a pledge and a promise that I made, and for good reason – we’ve been in this organisation for 40 years, people of this generation haven’t been able to make the choice of whether to stay or to leave

“Europe has made changes over the years and you can’t hold a country in an organiastion against its will. I think we should welcome the fact that we’re having the big sovereign decisions by the British people.”

“There are people out there who say yes, there would be a hit to our economy but it’s somehow worth it for other reasons. I’ve heard Nigel Farage, for instance, stay that many times. I profoundly disagree,” he said.

“We have a special deal in Europe and with that in mind it is certainly not worth the huge risk and downside to our economy of voting to leave. That is why I’m making this argument so vigorously every day for the next 30 days before we vote.”


Cautious consumers had stopped shops from gaining more revenue during a time aggressive sales records are needed to ensure economic stability.

Coupled with investor scares regarding the Federal Reserve’s plans to increase interest rates for low unemployment and apparent inflation, things aren’t going so well for the US economy.

According to the March manufacturing PMI report, Monday’s spending data included downward revisions to January’s numbers. A drop from 0.5pc to 0.1pc on a month-to-month surge experts consider the weakest result the US had over a year.

Savings rates climbing to their highest point that rivalled 2012 figures is evidence that US consumers don’t want to go out and spend more.

The Federal Reserve is helpless. As it continues its ultra-cheap monetary policy to stabilise the economy, its sufficiency doubles economic breakdown risks. Unemployment had not improved and inflation is highly likely with the increased surplus in goods due to poor consumer activity.

The Fed will need to increase interest rates else the US dollar may collapse.

Investors are watching stocks closely until the Federal Reserve finalises a decision to go or not go with interest rate hikes.

Federal Reserve Representatives said to the US media that they are often meeting to discuss possible rate increases to downplay the negative interest rates in the country.


According to Ireland’s Prime Minister Enda Kenny, Northern Ireland would suffer the worst from a British exit from the EU. The British exit has become a threat. According to Kenny, Northern Ireland’s peace process was linked to the Irish Republic’s joint membership of the EU along with the UK.

Ireland expected the European Commission to drive UK to bargain and remain in talks to have it stay in the EU. However, Eurosceptics in the UK, France and London are leaning in favour of an exit.

According to Polish Deputy Prime Minister Leszek Balcerowicz, the EU must not be too generous to the UK but it must also focus on deterring other exits.

Former Italian Prime Minister Enrico Letta said Italy would support the EU as the EU moves its finance centre away from London should the UK leave. Many EU leaders are seeing that Britain’s exit can mean a new EU financial hub “can be a blessing” to the bloc.

London will not remain as Europe’s finance centre, which would mean chaos for the UK economy upon exiting.

According to Former EC Trade Commissioner Karel de Gucht:

“How can you expect that after you leaving the European economy … that economy would accept that its financial centre is outside its borders.”


If there’s anything the 2008 financial crisis taught everyone, it would be that putting everything on credit is a bad, bad thing and quick money isn’t the answer to most corporate problems. While it may press on the inevitable fact that some businesses must be shunned and sacrificed, everyone wants to survive.

Therefore, a repeat of 2008 could happen because of the Corporate Bond Market.

Banks Cut Off Their Bonds

Over time the UK’s corporate bond growth had seen a 75 per cent reduction to bond inventories of banks, which are the primary dealers, since 2008. Meanwhile, the market had grown in size the past 10 years due to affordable offers due to low interest rates the Bank of England offered previously.

A combination of new rules on buying and selling bonds left banks with reduced inventories, making it difficult to liquidate. This can introduce large pricing swings in the market, which might begin a collapse.

Bad Interest Rate Rise

The Bank of England is signalling it would increase interest rates by the following year. Analysts are spooked as investors, who so quickly purchased corporate debts and bonds for cheap interest rates, might pull out as they put in.

Unless banks increase their capital, this couldn’t happen. However, due to increasing UK bank levies and stricter laws, banks such as HSBC intend to move their global headquarters out of the UK, bringing with it a huge amount of their debt.

No One Knows How It Would Work

If such pull out does happen, analysts are afraid of several complex issues.

According to Citi’s Credit Strategist Matt King:

“There is concern about bank regulation putting dealers under pressure. Most of the evidence shows dealers have become more efficient.”

King points out that investors pulling out could mean credit mutual funds losing much of their cash once savers withdraw money as soon as the rates rise.

Central banks backing banks use economic assumptions to work out the valuations in their mortgages. Corporate bonds are difficult to track because the companies can default in unpredictable ways.


Mining Company Glencore is down by 30 per cent closing at its lowest on Monday after Investec warned about huge debt troubles. Investec warned that Glencore’s valuation will suffer if metal prices do not improve. In turn, Glencore had announced the suspension of dividends and plans to sell its assets to raise money to help cut down its £21 billion debt pile. This was also Glencore’s CEO Ivan Glasenberg’s reaction to shareholder pressure.

Billions Wiped Off

Glencore lost about £3.5 billion from its market value. However, Glasenberg’s agreement to cut debt would help the company at least protect its debt rating. The low valuation of metals, including Glencore’s main products copper and coal, contributed to the downgrading of their prices.

Meanwhile, the directors and employees from Glencore who took up about 22 per cent of the company’s new shares may lose much in the next few days. However, investor and market confidence would still increase in the process.

Reason For Failure

Investec analysts said “If major commodity prices remain at current levels, our analysis implies that, in the absence of substantial restructuring, nearly all the equity value of both Glencore and Anglo American could evaporate.”

Glasenberg, who holds a giant share in the company, believed it was better to fail in value than to miserably lose the company’s credit rating by being unable to pay its billions of debt.


Wall Street has declined for a second straight day on Wedneday as the tech sector fell in value including tech giant Apple.

Apple shares slumped 4.3 percent to $125.14, a day after the iPhone maker’s revenue forecast dropped below expectations. It is Apple’s biggest drop since January 2014 .

“We are getting a little bit of indigestion in the market over the past two sessions from tech earnings,” said David Schiegoleit, managing director of investments at the Private Client Reserve of U.S. Bank in Los Angeles.

“We stepped right into the beginning of this week with IBM disappointing, followed by Microsoft, Apple and a couple of others, so we are just getting a little bit of heartburn in the market from those earnings releases on the tech side.”

Microsoft has stumbled to 3.7 per cent, it’s biggest drop from January as stocks fell to $45.54. It has reported its biggest quarterly loss attributed to the failed Nokia phone venture and little demand for Windows OS.

Meanwhile, Yahoo had shed about 1.2 per cent at $39.24 after it forecast some lower-than-expected revenue for the current quarter.


About 50% of Americans leave their assets and properties in confused hands after their passing because of their lack of an estate plan. Most 40-50 year olds believe it to be a morbid or even a cursed thing to do, but truthfully, estate planning is essential to avoid confusion upon death and a streamlined approach to making sure your assets are properly distributed. So here are five things you need to remember.

  1. Revocable Living Trust

A revocable living trust allows your heirs to receive their inheritance when they achieve the conditions placed by the estate planner. Most of these revocable living trusts evenly spread out the distributions of inheritance even for young adults.

  1. Full Funding

Full funding ensures that your trust remains private and the trust doesn’t have to go to court to settle the distribution of assets to your children and inheritors. When you fully fund your trust, your matters are kept quiet simply because the entire situation is discussed through closed doors.

  1. Guardian

Naming an adult or a trustee for your young children is important. The guardian would be responsible for handing over your inheritance to your children once they fulfil your conditions.

  1. Never Too Young

No one is ever too young to create a will and trust. When your assets grow, the more you should consider creating your own will and trust as soon as you can. This will help avoid confusion upon your passing.

  1. Update Regularly

As you are young, situations change, and you’ll have the chance to regularly update your will and estate plans to match the current situation of your inheritors, or even yourself.


In the United Kingdom, a student who studies in a public school has obviously lower debt compared to those who study in private institutions. Meanwhile, after college, most will still have debt. Adding debts for marriage, property loans and other expenses, the average joe’s grand total in the United Kingdom costs around £25 billion. This is quite shocking!


Despite being married, having a baby when you’re not ready yet isn’t a very good situation. If you’re both just starting out with your careers and you really lack money, you’ll need to do everything in your power to insure you could provide everything for your newborn. If you intend to keep the baby, here are three steps to effectively handle the situation.

 

  1. Do Away With Your Excesses

 

Unfortunately, playtime is over for you if you finally have a child. It’s time to cut back on your smoking and drinking. You’ll also need to watch out for things that you purchase. You cannot make any costly purchases that do not yield you great results. You’ll need to do away with your excesses as this can help you save money.

 

  1. Ensure that You Are Insured

 

Ask your employer if their health benefits cover your wife or yourself as you are going through your pregnancy. It would be better to get a straight answer now than have questions, and even possible uncertainty, in just a few months.

 

  1. Your Baby Will Not Need Anything Extravagant.

 

You’ll definitely need some baby gear and spend for baby food and milk over the next few years (aside from a deficit of sleep). Most parents think that high-quality brands are the best choice when it comes to taking care of their child. In all truthfulness, this isn’t true. Your baby just needs something that could facilitate feeding and walking them around, but they do not need to be of too high quality.