The Abbey National has been speaking to families in the UK and found them cutting their holiday budgets so they can allocate more of their money to day to day living expenses.
Compared with last year the average family spends around GBP175 less than they were doing on a holiday, prompted in no small part by the expectation of fuel and food bills going up by around 60 percent compared with last year. Other areas of family life are also seeing cuts said the Abbey National, including childcare, sports, hobbies and toys.
It is a natural stance to take said the Abbey National, since parents try and manage their finances with common sense, knowing that their family depend on them.
The Legal and General is reporting that economic indicators are flagging up a 95 percent chance of economic slowdown and subsequent recession.
According to an analyst at the company these indicators are even more pronounced than in 2001, the last time the UK economy fell upon hard times. This time the country is even more reliant on borrowing and the criteria for lending money is tighter than before. It has also been said that, even if access to credit becomes easier the startlingly fast rise in the price of fuel will keep the pressure on consumers and the economy.
The Legal and General analysts are factoring in the global slowdown that is needed, saying that countries such as the UK and USA will be hardest hit. All in all these look like trying times for the economy and consumers.
British bank Alliance and Leicester is to be bought by Santander according to an announcement stating an agreement had been reached between the two parties.
The purchase price is understood to be GBP1.26 billion, the transaction to be made in shares. Santander will give one of their shares for every three Alliance and Leicester ones, giving the shares a value of 299 pence each which is around 33 percent higher than the share value at the close of business last week.
Interestingly, although the Alliance and Leicester as well as many other UK and international banks have suffered on the back of the credit crunch Santander have had a very good year. They have seen good returns from Latin America it appears and this has enabled them to look at acquisitions such as this one.
