British Prime Minister Gordon Brown Wednesday announced an unprecedented 500-billion pound bailout package as central banks around the developed world cut interest rates in a coordinated move aimed at rescuing the global economy from a crippling credit crunch.
In a series of steps announced early Wednesday morning, the British government said it was making available an amount of 50 billion pounds to eight banks and building societies to enable them to continue lending to small businesses and individual home-buyers.
The government also made available 200 billion pounds in short-term loans from the Bank of England, and up to 250 billion pounds in loan guarantees at commercial rates to encourage banks to lend to each other.
In what Brown described as a “bold solution", British banks in exchange will have to agree to controls - they will not only continue lending to small businesses and individuals at existing rates but also place limits on huge executive pays and rewarding bankers who take excessive risks.
The government said it expected to recoup the money in three years' time.
The steps, aimed at improving the flow of cash in the British economy and described as part-nationalisation of the eight banks and building societies, came as central banks in the US, Britain and across Europe cut interest rates in order to kick-start lending.
The Bank of England cut interest rates by 0.5 percent Wednesday, meeting a day before it was meant to - only the second time it has brought ahead the meeting, the first being in the aftermath of 9/11.
Gordon Bown told a Downing Street news conference: "Extraordinary times call for bold and far-reaching solutions.
"Our stability and restructuring programme is comprehensive, it is specific and it breaks new ground. This is not a time for conventional thinking or outdated dogma but for the fresh and innovative intervention that gets to the heart of the problem."
"All these are investments being made by the government, which will earn a proper return for the taxpayer. This support is on commercial terms. We expect to be rewarded for the support we provide," he added.
Showing posts with label Britain. Show all posts
Showing posts with label Britain. Show all posts
Wednesday, October 8, 2008
Tuesday, October 7, 2008
Britain is already in recession: Report
Britain is already in a "worsening recession" and is facing the dual threat of slowing growth and rising unemployment, a survey of 5,000 companies by the British Chambers of Commerce (BCC) said Tuesday.
The report said sales and profits had plummeted over the summer amid a worsening economic outlook and the prospect of rising unemployment as confidence had "collapsed" across all sectors of the industry.
The business association said it was clear that Britain was in a "worsening" recession and urged the government and the Bank of England to take urgent action to avoid a "major" recession.
It urged the central bank to cut interest rates by 0.5 percent this week, while the government was told to slash business taxes.
The report warned that unemployment was expected to increase by between 300,000 and 350,000 over the next two years, which would take the total over two million.
"The alarming results point to worsening dangers of major economic downturn and rising unemployment. The results support the view that a UK recession has started and the downturn is getting worse. The domestic economy is under immense pressure," said David Kern, the BCC's economic advisor.
The Bank of England is due to announce an interest rate decision Thursday amid speculation that rates could be cut from the current five percent to stimulate the economy amid ongoing turmoil.
Both the Paris-based Organization for Economic Cooperation and Development (OECD) and the European Union (EU) have said that Britain will enter a recession this autumn.
Indo-Asian News Service
The report said sales and profits had plummeted over the summer amid a worsening economic outlook and the prospect of rising unemployment as confidence had "collapsed" across all sectors of the industry.
The business association said it was clear that Britain was in a "worsening" recession and urged the government and the Bank of England to take urgent action to avoid a "major" recession.
It urged the central bank to cut interest rates by 0.5 percent this week, while the government was told to slash business taxes.
The report warned that unemployment was expected to increase by between 300,000 and 350,000 over the next two years, which would take the total over two million.
"The alarming results point to worsening dangers of major economic downturn and rising unemployment. The results support the view that a UK recession has started and the downturn is getting worse. The domestic economy is under immense pressure," said David Kern, the BCC's economic advisor.
The Bank of England is due to announce an interest rate decision Thursday amid speculation that rates could be cut from the current five percent to stimulate the economy amid ongoing turmoil.
Both the Paris-based Organization for Economic Cooperation and Development (OECD) and the European Union (EU) have said that Britain will enter a recession this autumn.
Indo-Asian News Service
Britain is already in recession: Report
Britain is already in a "worsening recession" and is facing the dual threat of slowing growth and rising unemployment, a survey of 5,000 companies by the British Chambers of Commerce (BCC) said Tuesday.
The report said sales and profits had plummeted over the summer amid a worsening economic outlook and the prospect of rising unemployment as confidence had "collapsed" across all sectors of the industry.
The business association said it was clear that Britain was in a "worsening" recession and urged the government and the Bank of England to take urgent action to avoid a "major" recession.
It urged the central bank to cut interest rates by 0.5 percent this week, while the government was told to slash business taxes.
The report warned that unemployment was expected to increase by between 300,000 and 350,000 over the next two years, which would take the total over two million.
"The alarming results point to worsening dangers of major economic downturn and rising unemployment. The results support the view that a UK recession has started and the downturn is getting worse. The domestic economy is under immense pressure," said David Kern, the BCC's economic advisor.
The Bank of England is due to announce an interest rate decision Thursday amid speculation that rates could be cut from the current five percent to stimulate the economy amid ongoing turmoil.
Both the Paris-based Organization for Economic Cooperation and Development (OECD) and the European Union (EU) have said that Britain will enter a recession this autumn.
Indo-Asian News Service
The report said sales and profits had plummeted over the summer amid a worsening economic outlook and the prospect of rising unemployment as confidence had "collapsed" across all sectors of the industry.
The business association said it was clear that Britain was in a "worsening" recession and urged the government and the Bank of England to take urgent action to avoid a "major" recession.
It urged the central bank to cut interest rates by 0.5 percent this week, while the government was told to slash business taxes.
The report warned that unemployment was expected to increase by between 300,000 and 350,000 over the next two years, which would take the total over two million.
"The alarming results point to worsening dangers of major economic downturn and rising unemployment. The results support the view that a UK recession has started and the downturn is getting worse. The domestic economy is under immense pressure," said David Kern, the BCC's economic advisor.
The Bank of England is due to announce an interest rate decision Thursday amid speculation that rates could be cut from the current five percent to stimulate the economy amid ongoing turmoil.
Both the Paris-based Organization for Economic Cooperation and Development (OECD) and the European Union (EU) have said that Britain will enter a recession this autumn.
Indo-Asian News Service
Thursday, March 27, 2008
British government welcomes Tata buy
Trade and Investment Minister Lord Digby Jones - who has just won a campaign to be allowed to drive a Jaguar - said Wednesday the British government welcomes the "long-term commitment" shown by Tata Motors in purchasing the Jaguar and Land Rover brands.
"The Tata Group is already a major investor in the United Kingdom, with recent acquisitions including Corus, and in automotive terms Tata Motors has also had its European Technical Centre in the West Midlands for several years," he said in a statement minutes after Ford announced the sale of the iconic brands to Tata Motors for $2.3 billion.
"We welcome their long-term commitment now to developing the Jaguar and Land Rover brands as part of their British businesses," said Jones, who earlier this month won a feisty battle against the government's green lobby to be allowed to be driven in an official Jaguar rather than a low-emission hybrid car.
"These businesses have every reason to face the future with confidence - Land Rover is at record production levels, Jaguar has exciting new products, and both brands are supported by a committed, expert workforcem," Jones said.
"UK Trade and Investment will do everything it can to promote the Jaguar and Land Rover brands around the world," he added.
Jones' comments came amid much speculation in London that Prime Minister Gordon Brown would make a statement on the acquisition by the Tatas during Question Hour in the British parliament.
Although he failed to do so, Jones gave interviews on the deal, speaking to the media all the way from Bangkok, where he is on an official visit.
Meanwhile, the UK-India Business Council (UKIBC) said the deal is an "outstanding example of the UK's open economy" and its ability to attract offshore investment and talent.
"Vodafone's acquisition of Hutch and Tata's previous acquisition of Tetley and more recently Corus are leading examples of this," said Sharon Bamford, chief executive of the UKIBC - the lead organisation supporting the promotion of bilateral trade, business and investment opportunities between the two countries.
UKIBC chairman Lord Karan Bilimoria said the purchase is the latest example of the newfound confidence of Indian companies.
"Less than two months ago, I sat in the new Tata Nano, and I witnessed history in the making. Indian companies are growing more confident in the global economy, and with this deal the country is on the move like never before," he added.
Indo-Asian News Service
"The Tata Group is already a major investor in the United Kingdom, with recent acquisitions including Corus, and in automotive terms Tata Motors has also had its European Technical Centre in the West Midlands for several years," he said in a statement minutes after Ford announced the sale of the iconic brands to Tata Motors for $2.3 billion.
"We welcome their long-term commitment now to developing the Jaguar and Land Rover brands as part of their British businesses," said Jones, who earlier this month won a feisty battle against the government's green lobby to be allowed to be driven in an official Jaguar rather than a low-emission hybrid car.
"These businesses have every reason to face the future with confidence - Land Rover is at record production levels, Jaguar has exciting new products, and both brands are supported by a committed, expert workforcem," Jones said.
"UK Trade and Investment will do everything it can to promote the Jaguar and Land Rover brands around the world," he added.
Jones' comments came amid much speculation in London that Prime Minister Gordon Brown would make a statement on the acquisition by the Tatas during Question Hour in the British parliament.
Although he failed to do so, Jones gave interviews on the deal, speaking to the media all the way from Bangkok, where he is on an official visit.
Meanwhile, the UK-India Business Council (UKIBC) said the deal is an "outstanding example of the UK's open economy" and its ability to attract offshore investment and talent.
"Vodafone's acquisition of Hutch and Tata's previous acquisition of Tetley and more recently Corus are leading examples of this," said Sharon Bamford, chief executive of the UKIBC - the lead organisation supporting the promotion of bilateral trade, business and investment opportunities between the two countries.
UKIBC chairman Lord Karan Bilimoria said the purchase is the latest example of the newfound confidence of Indian companies.
"Less than two months ago, I sat in the new Tata Nano, and I witnessed history in the making. Indian companies are growing more confident in the global economy, and with this deal the country is on the move like never before," he added.
Indo-Asian News Service
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