Today the UK lacks major economic data while we see that the government is not standing still as it was posted that during this year the government gave investment bankers 11.5 million pounds to help them stabilize which will ease the worst financial crisis since the Great Depression.
The government gave investment bankers so far this year 62% more funds to have to them hire professional help to find solutions to end the financial turmoil that is battering the health of the United Kingdom.
The UK banks are looking forward to reinvesting in real estate by transferring their commercial property loans to real investment trusts as a way to clear their balance sheets from toxic assets as a way to avoid them from collapsing which will be another woe for the government to deal with as already they are using all possible weapons to ease the crisis banks are facing.
A government-commissioned report today stated that banks should setback paying bonuses while increasing the power that committees have while increasing the liabilities that chairmen have to make sure that another financial turmoil will not worsen.
As long as banks do not stabilize therefore it will be difficult for Britons to access loans which means that there will be lower investments done by businesses and lower spending levels seen in the nation while already there is rising unemployment.
Yesterday we witnessed that unemployment rates spiked to 7.6% as companies were forced to terminate employees as they deal with eroded profits while production output is being slashed as a result of weaker consumer demand and tightening lending conditions.
With a softening labor market, money flowing in the nation is weak at a time the economy needs liquidity to prosper correctly and survive during the global downturn; the mounting of job losses only undermines growth prospects while GDP for the first quarter final reading revealed a contraction by 2.4 percent the worst since 1958.
Although the government is using measures to stimulate economic growth and jolt the UK out of recession, still it is going to be very difficult to lower these unemployment rates because for companies to start functioning properly once again, will take a while as first demand levels have to be boosted next to confidence of course which is main factor that is paring spending in the nation.
The lack of confidence that Britons have for the UK was led from them believing that the prolonged recession was going to last for sometime but now we can say that the outlook is fuzzy especially since major sectors that fuel economic growth have been easing the pace of contraction, yet the credit quake and weak housing sector and of course rising deflation risks are barriers in front of the economy's recovery.
Earlier this week, we saw that inflation rates fall below banks set target rate for the first time in nearly two years as the recession weighs heavily on producers prices as producers cut prices to attract consumers as a way to spur spending and boost crippled earnings.
Turning to the stock markets, we see that the optimism that filled the markets yesterday today has evaporated as UK stocks markets are rising slightly. As of 11:18 GMT the FTSE-100 index gained 11.25 points or 0.26% to 4,357.71 points.