Economic growth is being held back by the numbers of people repaying debt rather than spending money, according to Bank of England Governor Mervyn King.Mr. King said that although there are signs that the UK economy is growing once again, companies and individuals are focusing on repaying debt rather than spending money on goods or services, restricting the amount of money flowing through the economy. The news comes shortly after the announcement that annual inflation (CPI) had fallen from 1.8% in July to 1.6% in August.A debt expert for Think Money said: “From a borrower`s perspective, it`s encouraging to see…
Business
Personal debt levels `holding back economic recovery`
Business
Lower deposits required for FTB mortgages
Research by Mortgageforce suggests that the average deposit needed for first-time buyers (FTBs) to secure a mortgage fell to 21.25% (of the property`s value) in August, from 25.4% in July, moneynews.co.uk reports.Katie Tucker, a spokesperson for the organisation, said that the mortgage market is likely to offer `easier terms for first-time buyers in the future due to the stability of property prices.` She added that this should lead to mortgage lenders offering more generous deals.A mortgage expert for Think Money commented: “It is important that anyone looking to take out a mortgage to buy a property thinks about whether they…
Business
Bank credit to private sector seen declining 3% in 2009 – Mexico
Credit granted by commercial banks to the private sector in Mexico is expected to decline by 3% in real terms this year due to the effects of the economic recession on the demand and supply of credit, according to Eduardo González, analyst at financial groupBanamex. The credit contraction has deepened in recent months, with direct performing loans to the private sector decreasing by 4.2% in the year through July, following a 3.7% drop for the 12 months through June, according to the latest data from the central bank. “We are close to seeing the worse in terms of annual credit…
Business
China needle attacks ‘not toxic’
Rumours had been rife that the needles contained radioactive substances, poison or even the HIV virus. Blood samples from 250 reported victims were examined in a Beijing lab, said state-run Xinhua news agency. The syringe attacks began in August, a month after riots between ethnic Uighur and Han Chinese left about 200 dead. Three people have received jail sentences over the needle attacks. The wave of attacks has raised tension in the region, amid long-standing animosity between the Uighur and Han communities. Security fearsA total of 531 people reported being attacked with hypodermic needles, with 171 showing “obvious syringe marks”,…
Business
SA launches corruption hotline
Mr Zuma first mentioned the hotline during his election campaign, saying it would help make the government more accessible to the public. The hotline can also be used to report corruption in public offices. The BBC’s Pumza Fihlani says corruption and lack of service delivery are among South Africa’s key challenges. Mr Zuma has himself been accused of corruption, which he has always denied. The charges were dropped in April after prosecutors said there had been political interference in the case under the previous administration. In July, there were widespread protests by township residents demanding better public services, such as…
Business
Eurozone is ‘exiting recession’
“The economy appears to be at a turning point,” the commission said. It forecast growth of 0.2% for the July to September quarter, with Germany and France continuing to grow and Italy exiting recession. The commission also forecast the UK economy, which is outside the eurozone, would grow by 0.2% during the third quarter, marking the end of recession. Separately, official figures showed that eurozone industrial production fell by 0.3% in July compared with the previous month.
Business
BSE Sensex falls 0.5 pct after 6-day rally
MUMBAI (Reuters) – The BSE Sensex (^BSESN : 16185.2 -79.1) dropped 0.5 percent Monday as investors locked in profits after a six-session rally, with weak Asian markets setting the direction. By 11:23 a.m. (0553 GMT), the 30-share BSE Index was down nearly 80 points at 16,185.94 points, with 20 components losing. The benchmark, which climbed 5.6 percent over the previous six sessions, had more than doubled last Tuesday from its March low. “There is very little room for buying at these levels,” said D.D. Sharma, vice-president, Anand Rathi Securities. “There might be pockets of demand at dips, but largely…
Business
ANALYSIS – Easy money fuels all markets, but not forever
NEW YORK (Reuters) – General investment theory holds that investors should diversify, buying one asset class on expectations of profit as they avoid others on fears of a loss for any given set of economic circumstances. But with gold at 18-month highs, U.S. stocks rising off recessionary lows and a rally in U.S. bonds sending yields on some debt to the lowest since July, the investment climate is anything but typical. The worst global economic contraction in decades prompted low interest rates around the world and central banks, including the U.S. Federal Reserve, to take the extraordinary precaution of…
Business
Home loan sops, DA to bring cheer
NEW DELHI: Here’s good news for serving and retired civil servants. The government has increased dearness allowance (DA) for government employees and dearness relief (DR) for pensioners by 5% with effect from July 1. This will put additional purchasing power in the hands of civil servants to the tune of Rs 2,903.55 crore, up to end-February, after which another instalment of DA would kick in. This comes as good news for marketers gearing up for an action-packed festive season, and would increase consumption in the economy. The Union Cabinet’s decision to increase DA to 27% is in accordance with the…
Facebook
Facebook Surpasses 1,000 Employees
According to a Bloomberg article this morning, Facebook has at least 1,000 employees as part of its workforce now. In an interview with Bloomberg, Mark Zuckerberg explains that since the company hasn’t “made it” yet, he would prefer that the company’s “building feel much more like a very large garage.” Perhaps after the company has launched a payment platform and extended Facebook Ads to the rest of the web they can live a lavish lifestyle.
Revenue has grown 70 percent this year which is a substantial amount considering the economic downturn but slower then the previous year when revenues doubled.…
Facebook
Twitter Striving To Innovate Quicker Than Facebook
This afternoon Twitter announced that geolocation data would now be added to users’ tweets. It’s something that Facebook has actually been discussing for some time off and on but adding such a feature to all feed stories isn’t the easiest process. In the meantime Facebook is still trying to adjust their platform to provide greater access to information. It’s essentially the “out opening” of Twitter, a similar strategy that Google attempted, starting with OpenSocial.
Interestingly enough, the model appears to be working for Facebook. The latest data from comScore suggests that Twitter’s growth took a break for July and the…
Computer
Laptop Price
Wal-Mart’s Laptop Prices Lure Buyers to Accessorize (Update2)
By Courtney Dentch and Mark Clothier
July 31 (Bloomberg) — Staples Inc. and Wal-Mart Stores Inc. are slashing laptop price and expanding their selections for the back-to-school shopping season, banking on the computer demand to sell more profitable accessories and services.
Staples, the largest office-supplies retailer, boosted its portable computer selection by 50 percent, while Wal-Mart, the world’s largest retailer, is selling out of a $298 Compaq Presario model in some stores.
Those retailers, along with Best Buy Co., are looking to cheaper laptops to entice customers to buy the external hard…
