The Prime Minister, Gordon Brown, apparently told the people of the UK that Northern Rock could be sold for a profit in the future while his own advisors had said otherwise.
Gordon Brown had stated in a press conference in February that Northern Rock could be sold for a profit when the financial markets had recovered, though the advisors brought in to look at the options for Northern Rock had said a GBP450 million loss was the best possible outcome, with the most likely result being a loss of GBP1.28 billion. This figure was based on stable house prices, so in the current climate the loss is expected to be even greater.
The Treasury has stated that its purpose in buying out Northern Rock was to stabilise the bank and also the rest of the financial sector, not to make a profit. However Mr Brown should not have misled the public by saying a sale would generate a profit. Oh to have an honest politician, we can but dream.
The May Fundamentals report produced by Legal and General suggests that the economic outlook for the UK is a negative one.
There are some positive factors said the Legal and General, such as low unemployment, the weaker pond helping exports and the fact that consumer spending is still active. However they see more negative elements than positive ones which leads them to rating the economic forecast as poor.
Key pointers include the much more difficult lending conditions facing borrowers, higher levels of debt and also a rate of inflation that is rising much too quickly. All in all the Legal and General view is that, unless changes are seen in this factors the UK economy could face real difficulties.
Sainsburys Bank is advising those travelling abroad to get their currency arrangements sorted out in good time to avoid losing money on commission charges and lower exchange rates.
Travellers who sort their currency out at the airport, as well as those who arrange their currency abroad, will find themselves out of pocket compared with doing it all in the UK prior to trave believes Sainsburys Bank. Waiting to the last minute leaves travellers with no options but to take the poorer exchange rates on offer and ultimately receiving less in their pocket.
A Sainsburys Bank spokesman hoped that travellers would bear this advice in mind. He felt it would be a shame if, after trying to get the best deals all year round on their purchases, they let themselves down on something so important like foreign currency.
