The investment management team at Legal and General are anticipating recession in the UK as early as this year. The economic indicators the Legal and General people are looking at are highlighting an imminent recession. These indicators include the level of borrowing, reduced spending and the relative inability to access extra funds. In combination these factors are really making the British public take notice of the economy and consider their own positions. Further driving the problem is the fact that the global economy is struggling, so it is not an isolated UK issue. Consumers in the UK are keeping a wary eye on the situation says Legal and General, which automatically means they are less free with their spending and tend to be much more conservative in their decisions.
Alliance and Leicester fixed rate bonds have enjoyed some interest rate changes, with the one year fixed rate product going up from 6.5 percent to 6.65 percent AER. All the fixed rate bonds provided by Alliance and Leicester will payout on a monthly basis should that be preferable to the customer, with the balance invested needing to be between GBP2,500 and GBP2 million to be eligible for monthly payments. The minimum amount needed to invest in one of these bonds is GBP1,000. The benefit of fixed rate bonds is the security of the capital invested as well as there being a set, guaranteed, return said an Alliance and Leicester spokesman. This means customers know exactly what they will receive back from their investment, enabling them to plan more effectively.
The largest insurer in the UK, Norwich Union, has suspended what had been described as a ground breaking form of car insurance that used a black box to track every journey. The idea was to set premiums based on the risks faced by drivers. This would mean that drivers avoiding rush hour or late night driving would pay less for their car insurance. Norwich Union cited a slow take up of the idea and too few customers as the key factors for withdrawing the car insurance scheme. There has also been a certain amount of mistrust from drivers regarding the black box. Having every journey monitored is not what Britain is about and there could be situations where a drivers Norwich Union car insurance policy could be negated if a vehicle was seen to be speeding at any time, or even have the data passed to the police. All in all most people feel the withdrawal of the black box idea is a good result and hope that it will not see the light of day again.