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.
Looking at the small business environment in the UK Direct Line has found that nearly a quarter of people running small businesses will not enjoy a day off on bank Holiday Monday.
Compared with the minimum 20 days holiday entitlement given to employees, small business owners take an average of just over 13 days holiday per year. The 20 days does not include Bank Holidays either, of which there are 8 each year. Looking at new start up businesses the holiday situation is even worse. Direct Line found that over 65 percent of people in business for less than 6 months have not taken any time off at all.
A Direct Line spokeswoman, commenting on the findings, commended the dedication shown by small business owners, seeing them working so hard to make their business a success.
Michael Klein, reported recently to be leaving Citigroup, of which Citibank is a part, is set to receive one of the largest payouts in the industry for a departing executive since the credit crunch started.
It is understood that Mr Klein will receive a settlement package from Citibank worth over USD42 million, made up of stocks and cash, with the proviso that he does not join a rival organisation before next October. The amount may cause consternation for the company since it sits uncomfortably with the position of banks and financial institutions saying they are struggling.
Citibank has seen many changes in recent months, with a new management structure now in place to try and steer the business back into profitability and financial stability following heavy losses on the back of the US sub-prime lending collapse.
