25 Jan 2012: UK ‘on the brink’ of recession

FTSE 100 5747 Down 8bp
S&P 500 1315 Up 10bp
NIFTY 50 India 5154 Up 53bp

Major Stories

  • ECB under pressure over Greek bonds
    • IMF pressurises ECB to take a Euro 40bn hit on its Greek bond holding to fill some of the gap in Greece’s budget
    • Private bondholders are being urged to agree on a 50% cut on the face value of their holdings
    • The October plan for Greece, according to IMF, is to get Greece debt to a 130% level of its economic output
  • UK moves closer to recession as GDP falls
    • UK economy shrank more than expectations in 2011 Q4, as manufacturers cut output
    • GDP fell 0.2% from Q3; it had increased 0.6% in Q3
    • Economists say that Q4, and 2012 Q1 will largely be flat giving stimulus to Quantitative Easing; BoE Executives have called for QE in February
    • The IMF cut its growth forecast for the UK from 1.6% to 0.6% yesterday
    • This threat of recession increases pressure on George Osborne with his £150bn fiscal squeeze, causing the Govt 700,000 jobs
  • Apple results surpass expectations
    • Apple surpassed Wall-Street expectations with $46.3bn sales (including selling 37 million iPhones), which gives it almost $100bn cash-in-hand
    • Apple recorded a profit-per-share of $13.87, as compared to Analyst forecasts of $10.07, and Apple’s own forecast of $9.30
    • Apple hinted on reducing its cash-in-hand; they are discussing several uses for this cash

2 thoughts on “25 Jan 2012: UK ‘on the brink’ of recession

  1. What is all apple considering doing with te cash? Is it looking for inorganic expansion as well?
    It’s a very well written blog!!

    • they haven’t really revealed what they will do with the cash, but knowing Apple, I feel it might be industry based expansion; they will try and gain competitive edge by buying out companies/patents probably

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