View more on these topics

FTSE makes minor recovery

The FTSE clawed its way back over 5900 this morning on the back of US speculation that the Federal Reserve is to cut interest rates following heavy losses in the past few days.

Yesterday saw the FTSE close some 250 points down, a 4.1 per cent loss that meant the index fell through the glass ceiling of 6000, eventually finishing on 5858.9.

The fall came off the back of the largest American mortgage lender Countrywide borrowing some £5.7bn as it failed to attract sufficient short-term financing in the wake of crises.

The FTSE 100 has now lost £242bn since its market high in June 2007 – a loss of over £4,000 for every Brit.

Blue Planet Worldwide Financials Investment Trust manager Ken Murray warned yesterday that stockmarkets could fall another 20 per cent and that the financial markets are entering the worst banking crisis in decades.

Murray said: “The credit cycle has turned, bad debts are soaring, banks will go bust and stock markets will fall much further. People need to be told the truth as opposed to being spoon fed palliative words.”

Meanwhile, F&C income fund manager Ted Scott warned that problems with the credit markets will spill over into the real economy meaning the UK stock market has further to fall.

Scott said: “I believe that some contagion to the real economy is now inevitable. The consumer pumped up on cheap credit has kept the economy ticking. But given the record levels of indebtedness, consumers will now wish to rebuild their savings, particularly if unemployment starts to rise.”

Recommended

FSA told to name 12 firms in endowment blunders

The FSA is to be forced to name and shame the 12 endowment mortgage providers which misused Lautro projections in setting premiums, meaning consumers were given unrealistically high maturity figures.The Information Commissioner’s Office has upheld a freedom of information request to name the 12 firms, suggesting the revelation would highlight the ongoing issues surrounding endowments […]

Burnside quits Standard to head e-business at NU

Standard Life has lost two senior members of its e-commerce team including e-commerce manager Billy Burnside.Sales technology consultant Alistair Verity is also leaving while Alistair Cuthbert is moving into Standard’s wrap team.Burnside is joining Norwich Union as head of e-business development next month and his number two Ross Dunlop will head the team until a […]

GMAC-RFC latest lender to re-price sub-prime product range

GMAC-RFC has become the latest sub-prime lender to re-price its product range in the wake of the US sub-prime crisis.This follows the announcement by Mortgages plc that it will re-price its product range to reflect the recent widening of funding costs in the capital markets. Edeus has also confirmed it will be re-pricing this week.GMAC-RFC […]

Capita launches modular website builder for IFAs

Capita Enabler has launched a web service for advisers who want to create their own tailor-made and e-commerce-enabled web presence. The initiative is called ‘Modular Website’, the new package is a cost effective way for an intermediary to develop and maintain its own website. It uses a simple online editing tool, the template based structure […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com