Recession

[Holden McGroin 6975]

BBC

 

 

Recession 'looming' for UK firms

Window of a Marks & Spencer store

High Street shops have added to the gloomy economic mood.

 

The UK is facing a serious risk of recession within months, the findings of a survey of almost 5,000 small, medium and large businesses suggest.

 

The British Chambers of Commerce's (BCC) quarterly report found the credit crunch and rising costs had dented the most important sectors of the economy.

 

It comes as falling shares in banks, housebuilders and retailers dragged the FTSE 100 towards a bear market.

 

Global stock indexes have also fallen amid concerns about the global economy.

 

Meanwhile housebuilder Persimmon said it had cut 1,100 jobs amid woes in the UK housing market.

 

The building firm said that completions of house sales in the first six months of the year were down 30%, during what it described as the "most challenging period in our recent history".

 

Grim outlook

 

Firms in the manufacturing and services sector said domestic sales and orders had slowed over the past three months, said the BCC, which added that firms were also experiencing serious cash-flow problems.

 

 

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Its economic adviser, David Kern, said the survey showed a "menacing deterioration" in UK prospects.

 

"We are now facing serious risks of recession," he said.

 

"The outlook is grim and we believe that the correction period is likely to be longer and nastier than expected."

 

There are a number of definitions of a recession, but the most commonly used one is when there are two quarters in a row of economic contraction, or negative growth.

 

Services firms, which include restaurants, gyms and tour operators, have been particularly hard hit, the BCC reported.

 

Sales and orders, job expectations and confidence in this sector had hit their lowest levels since the recession of the early 1990s.

 

The BCC's director general David Frost said the report was deeply worrying.

 

A house being constructed

There has been disappointing news on house building and mortgages

 

"I am sending Alistair Darling and Gordon Brown a strong message from the businesses I meet every day up and down the country," he said.

 

"To put more pressure on business would not only restrict business growth and hit the consumer hard, it would crush further what our economy is based on - confidence."

 

Mortgage drought

 

The report is likely to add to the wave of pessimism sweeping across the business world, from retailers to house builders.

 

Last week, the housing market suffered another blow when the Bank of England said mortgage approvals had plunged by 28% in May and were 64% lower than a year earlier.

 

HAVE YOUR SAY

 

The construction trade has had it coming for a while

 

Nick Smith, Huddersfield

Send us your comments

 

House builders are cutting jobs and offices as the property slump continues. Before the news of the job cuts at Persimmon, rival builders Taylor Wimpey and Barratt Developments had announced 2,000 redundancies in the past week.

 

The mortgage drought has meant many people have been unable to secure the finance they need for a new home, while falling property prices have also put people off buying.

 

There was more bad news for the economy on Monday, when official figures showed that industrial output was falling at its fastest rate for more than a year.

 

Meanwhile, Marks and Spencer sent shivers across the retail sector last week when it reported a shock downturn in sales.

 

Some economists believe the chances of a recession in the UK are now 50:50.

 

They had hoped the slowdown in the economy would eventually reduce inflation, without turning into full-blown recession.

 

Well, it looks like it is more or less upon us and showing definite signs in small businesses and the construction industry already.

 

 

 

I am slightly worried as a lot of our customers are small businesses and my fixed rate mortgage comes to an end in February.

 

Goodbye social life.

Edited July 8, 2008 by Holden McGroin

[Meenzer 15873]

Aye, it's been looming for a while despite the best attempts of Big Government to massage the figures. Probably best to let it happen and deal with the fallout, unpleasant though it may be, but then that's not much of a vote-grabber...

[Holden McGroin 6975]

Without getting too political I suspect the Tories will take advantage of this with a load of vote winning "quick fixes" which will ultimately finish us off.

Edited July 8, 2008 by Holden McGroin

[Happy Face 29]

I've never been so well off personally.

 

I'm employed though, my parents are both self-employed and they've been hit hard by a lack of business.

 

Quite a few people I know have declared or are on the verge of declaring bankrupcy too.

 

Harsh to say, but anyone who grabbed whatever credit was hoyed at them the last 10 years really should really have seen it coming. Not that I blame them alone, it's not on the amount of borrowing creditors are (or have been) willing to give people.

Edited July 8, 2008 by Happy Face

[Holden McGroin 6975]

Do you live with your parents Happy Face?

Edited July 8, 2008 by Holden McGroin

[Happy Face 29]

Do you live with your parents Happy Face?

 

No I'm a homeowner. I got a good deal on a new 3 year fixed rate just before Brown took over, and made sure to re-mortgage enough to pay off all my outstanding borrowing.

Edited July 8, 2008 by Happy Face

[Happy Face 29]

I don't drive though. I think that's what's hit a lot of people hardest.

[Holden McGroin 6975]

Do you live with your parents Happy Face?

 

No I'm a homeowner. I got a good deal on a new 3 year fixed rate just before Brown took over, and made sure to re-mortgage enough to pay off all my outstanding borrowing.

 

Selling DVDs helps as well I suppose !

 

In all seriousness though food prices, petrol and the enormous gas/electricity hikes expected I can only see a gloomy near future.

[Happy Face 29]

Do you live with your parents Happy Face?

 

No I'm a homeowner. I got a good deal on a new 3 year fixed rate just before Brown took over, and made sure to re-mortgage enough to pay off all my outstanding borrowing.

 

Selling DVDs helps as well I suppose !

 

In all seriousness though food prices, petrol and the enormous gas/electricity hikes expected I can only see a gloomy near future.

 

 

That's just a precautionary measure so I get something back off what's fast becoming an obsolete format.

 

Not that anyone should be put off making a purchase by that.

[ewerk 31631]

Do you live with your parents Happy Face?

 

No I'm a homeowner. I got a good deal on a new 3 year fixed rate just before Brown took over, and made sure to re-mortgage enough to pay off all my outstanding borrowing.

 

Selling DVDs helps as well I suppose !

 

In all seriousness though food prices, petrol and the enormous gas/electricity hikes expected I can only see a gloomy near future.

 

 

That's just a precautionary measure so I get something back off what's fast becoming an obsolete format.

 

Not that anyone should be put off making a purchase by that.

 

I feel raped.

 

This has been coming for a while but unfortunately it seems like the government, while seeing it, hasn't prepared for it and failed to 'save for a rainy day' while the economy was booming. I almost feel sorry for Gordon that Tony was in charge during the period when the economy pretty much ran itself and now he's left with this pile of shit in his lap, almost.

Edited July 8, 2008 by ewerk

[The Fish 11098]

Cameron is calling for personal responsibility, which is a bit like asking Americans to stop shooting each other. "We talk about people 'being at risk of obesity' instead of talking about people who eat too much and take too little exercise" he said. ".. it's as if these things - obesity, alcohol abuse, drug addiction - are purely external events like plague or bad weather."

 

He's right to some degree, there should be a swing away from this blame society, where we're always looking to pass the buck to someone else. However, you simply cannot ignore the looming power of your environment has over you.

 

I'm concerned about this as the first businesses that are going to be hit are the ones who offer the luxuries in life. You're less likely to go out and watch a live band, go and have a meal or go to see some stand up comedy if you're feeling the pinch.

 

In my opinion it's been an amalgam of mistakes by the policy makers, the providers and the people. Credit shouldn't have been so attainable, people shouldn't have been so quick to grab it and the government should have foreseen the inevitable and applied restrictions to both parties.

 

Of course this is all hindsight, but you have to wonder, what exactly did the policy makers believe was going to happen when credit was so easy to get hold of?

[Happy Face 29]

Do you live with your parents Happy Face?

 

No I'm a homeowner. I got a good deal on a new 3 year fixed rate just before Brown took over, and made sure to re-mortgage enough to pay off all my outstanding borrowing.

 

Selling DVDs helps as well I suppose !

 

In all seriousness though food prices, petrol and the enormous gas/electricity hikes expected I can only see a gloomy near future.

 

 

That's just a precautionary measure so I get something back off what's fast becoming an obsolete format.

 

Not that anyone should be put off making a purchase by that.

 

I feel raped.

 

This has been coming for a while but unfortunately it seems like the government, while seeing it, hasn't prepared for it and failed to 'save for a rainy day' while the economy was booming. I almost feel sorry for Gordon that Tony was in charge during the period when the economy pretty much ran itself and now he's left with this pile of shit in his lap, almost.

 

That prosperity was based on cashing in every ounce of gold in the reserve though wasn't it? Tony and Gordon hit the credit cards harder than anyone.

 

At least it was spent wisely. Now we have Policing, NHS and public transport infrastructure that will prosper over the course of the next century.

 

 

Oh!

[ewerk 31631]

Cameron is calling for personal responsibility, which is a bit like asking Americans to stop shooting each other. "We talk about people 'being at risk of obesity' instead of talking about people who eat too much and take too little exercise" he said. ".. it's as if these things - obesity, alcohol abuse, drug addiction - are purely external events like plague or bad weather."

 

He's right to some degree, there should be a swing away from this blame society, where we're always looking to pass the buck to someone else. However, you simply cannot ignore the looming power of your environment has over you.

 

Just repeating what Thatcher banged on about for years, though personally I don't think that that's a bad thing.

[Kid Dynamite 7335]

If things get too bad for me im flogging my car, that will save me aroud £300 a month

[trophyshy 7099]

Seriously time to think about bailing out I reckon. Australia is booming on the back of developing worlds clamour for minerals apparently. NZ suffers brain drain, they always looking for good people, good standard of living without the need for £40k a year.

[sweetleftpeg 0]

If things get too bad for me im flogging my car, that will save me aroud £300 a month

 

I'm the same like, flogging my car would clear my debt and save me money..the only problem is they were saying that car prices have gone down because so many people of getting rid of them, so I'd get shafted on the price.

[Holden McGroin 6975]

Seriously time to think about bailing out I reckon. Australia is booming on the back of developing worlds clamour for minerals apparently. NZ suffers brain drain, they always looking for good people, good standard of living without the need for £40k a year.

 

I was seriously considering this about 1 year ago. Wish I had done it now. My house will be hard to get rid of at the minute....

[The Fish 11098]

If things get too bad for me im flogging my car, that will save me aroud £300 a month

And you'd get £5k for the personalised number plate too

[Happy Face 29]

Siemens plans to cut 16,750 jobs

 

Siemens plans to cut 16,750 jobs worldwide as the German conglomerate streamlines its operations to weather the economic downturn.

 

The company employs around 400,000 staff worldwide. The cuts amount to about 4% of the workforce.

 

Siemens issued a profit warning in March and its shares have fallen almost 35% since the beginning of the year.

 

The firm plans to eliminate 5,250 jobs in Germany, where around 136,000 of its workforce is located.

 

The Munich-based engineering group said the cuts will include 12,600 mostly administrative jobs.

 

"Against the backdrop of a slowing economy, we have to become more efficient," said Peter Loescher, president and chief executive.

 

The job cuts are part of a scheme to reduce costs by 1.2bn euros ($1.9bn; £0.95bn) by 2010.

 

Siemens said it would only make forced dismissals as a last resort and would offer staff early retirement.

 

The company has also been grappling with an alleged corruption scandal that involved accepting bribes to win overseas contracts.

 

http://news.bbc.co.uk/2/hi/business/7495339.stm

 

Did Siemens close down entirely on Tyneside or are there still lots of employees round these parts?

[David Kelly 1297]

They have at least one (two I think) places in Jarrow/Hebburn. I interviewed for a job there in the summer. Glad they knocked me back now.

[sweetleftpeg 0]

Think they still have quite a small workforce on Shields Road/Fosseway. At least the signage is still up.

[sammynb 3655]

Seriously time to think about bailing out I reckon. Australia is booming on the back of developing worlds clamour for minerals apparently. NZ suffers brain drain, they always looking for good people, good standard of living without the need for £40k a year.

 

Sorry to rain on your parade people but it's a global recession and it has been coming for a long time now.

With the collapse of the US sub prime, rising fuel prices and the boom of the chinese and indian economies not being able to continue at the rate they have been for the last couple of years, it was just there, waiting.

One of my biggest clients is an auto manufacturer and recently the word has come out from the parent company, cut costs and lose people.

And these guys, well lets put it this way, there isn't much bigger when it comes to volumes sold but this is how they are preparing not just here, in every country the produce vehicles.

 

Oh and don't worry NZ will suffer, they don't have enough resources to feed the four million sheep and three people.

[trophyshy 7099]

Seriously time to think about bailing out I reckon. Australia is booming on the back of developing worlds clamour for minerals apparently. NZ suffers brain drain, they always looking for good people, good standard of living without the need for £40k a year.

 

Sorry to rain on your parade people but it's a global recession and it has been coming for a long time now.

With the collapse of the US sub prime, rising fuel prices and the boom of the chinese and indian economies not being able to continue at the rate they have been for the last couple of years, it was just there, waiting.

One of my biggest clients is an auto manufacturer and recently the word has come out from the parent company, cut costs and lose people.

And these guys, well lets put it this way, there isn't much bigger when it comes to volumes sold but this is how they are preparing not just here, in every country the produce vehicles.

 

Oh and don't worry NZ will suffer, they don't have enough resources to feed the four million sheep and three people.

 

 

grass feeds the sheep tbf.

[Happy Face 29]

Seriously time to think about bailing out I reckon. Australia is booming on the back of developing worlds clamour for minerals apparently. NZ suffers brain drain, they always looking for good people, good standard of living without the need for £40k a year.

 

Sorry to rain on your parade people but it's a global recession and it has been coming for a long time now.

With the collapse of the US sub prime, rising fuel prices and the boom of the chinese and indian economies not being able to continue at the rate they have been for the last couple of years, it was just there, waiting.

One of my biggest clients is an auto manufacturer and recently the word has come out from the parent company, cut costs and lose people.

And these guys, well lets put it this way, there isn't much bigger when it comes to volumes sold but this is how they are preparing not just here, in every country the produce vehicles.

 

Oh and don't worry NZ will suffer, they don't have enough resources to feed the four million sheep and three people.

 

 

grass feeds the sheep tbf.

 

Pff, where are you from? The fifties?

 

Corn feeds all the animals...and all the people.

[trophyshy 7099]

Seriously time to think about bailing out I reckon. Australia is booming on the back of developing worlds clamour for minerals apparently. NZ suffers brain drain, they always looking for good people, good standard of living without the need for £40k a year.

 

Sorry to rain on your parade people but it's a global recession and it has been coming for a long time now.

With the collapse of the US sub prime, rising fuel prices and the boom of the chinese and indian economies not being able to continue at the rate they have been for the last couple of years, it was just there, waiting.

One of my biggest clients is an auto manufacturer and recently the word has come out from the parent company, cut costs and lose people.

And these guys, well lets put it this way, there isn't much bigger when it comes to volumes sold but this is how they are preparing not just here, in every country the produce vehicles.

 

Oh and don't worry NZ will suffer, they don't have enough resources to feed the four million sheep and three people.

 

 

grass feeds the sheep tbf.

 

Pff, where are you from? The fifties?

 

Corn feeds all the animals...and all the people.

 

the forties actually.