UK financial job losses could touch 60,000: Report

It is a difficult scenario for the UK financial and insurance sector, as a new report by the PwC and CBI presents a bleak forecast for the industry, adding to the fears of the IMF's earlier reports that Britain faces a tough jobless situation.

In their quarterly report on the UK's Financial, Insurance and Realty sector the PricewaterhouseCoopers and the CBI (Confederation of British Industry) have forecast a more difficult situation where up to 60,000 jobs could be shelved according to the report. Affected jobs are predicted to be in financial services, Insurance and Housing sectors.

The once booming sectors of the UK Economy have been hit the hardest for its heavy dependence on these sectors and the recovery will be much difficult as compared to other markets in the Europe the report forecasts.

The construction products association too has presented a poor outlook about the situation in the construction sector, where it predicts, it could be till 2021 for the sector to climb back again to the booming levels of 2007.

The only positive outcome of the report was that the business levels grew in the third quarter amidst job less threats, for the first time in two years.

Recovery difficult in US as the unemployment rate climbs to 9.7

The global financial crisis showed some signs of recovery after the crash in 2007 with some economies like Japan’s, slenderly coming out of the red, the economy has been stabilized and growth is returning to the economies but it will be a long and painful journey ahead reports say according to the analysts.

The financial markets failed as its rational expectations theory and some other spin offs- such as efficient market hypothesis and the financial derivatives up on which the financial Guru’s place their bets on lost out miserably, shattering the world’s financial system. The economic horizon is still uncertain and the recovery will be long, difficult and painful according to the media reports.



A recent US report also indicated the Unemployment rate climbing to 9.7 in the United States, though the rate has increased, the number of lost jobs count has slowed down and the analysts predict the rate will further rise to 10.1 by the middle of the next year. It is a healthy sign but unemployment rate climbing, there is not the underlying fuel there for strong consumer spending which is vital for the recovery analysts predict.

All along people in the US lost 6.9 million jobs since the country’s economy went into recession in 2007.

And now, analysts in the US reported a 3 to 4 percent growth in the third quarter thereby pulling US out of the longest recession since World War II.

In Asia, China and India are leading the economic recovery despite the world economy slow down with both the economies posting growth, with the Chinese economy posting a growth of 7.9 percent during the May-June Period and India’s economy posted a healthy 6.1 growth.

So, for now the story of main recovery in the world economy is happening in Asia, with China and India leading the way.

Other related posts :

1.Are Computer based complex models responsible for the financial crisis
2. Barack Obama’s first news conference after the elections

Barack Obama's First News Conference after the elections

US President elect Mr Barack Obama who won a landslide victory in the recent elections has pledge to work to repair the world economy in the first press conference. Whole world is looking at the new administration in the US with mixed optimism, as people know where they stand in terms of the financial chaos around the world.

Markets still are loosing points and the unemployment rate is climbing by the day, many comapnies are guaging their productions with demand and supply. There has been considerable amount of pressure on economies in the developing world, though there has been no widespread trouble, but markets sentiment is down. The upcoming world summit involving the G-20 in US should be a clear indication to know most of the facts related to the world economy. Whether the world economy needs a new financial system to work with or there are going to be a slew of measures that are going to stem the present debacle are some of the big questions the world leaders are going to answer including President elect Mr Obama of US at the summit.

Nations Want Financial Fix, but How?

Finance leaders from around the world meeting in Washington agree on principles to help solve a growing financial crisis gripping the globe, but the AP's Lee Powell says markets may demand something extraordinary.



Democratic campaign for the Presidential elections 2008 received a boost from Clintons attending the Vice-Presidential Campaign Joe Biden rally at his town in North Eastern Pennsylvania.

Are Computer based complex models responsible for the Financial Crisis ?

How best the complex computer models are used to predict the financial forecasts at the Wall-Street is going to have a whole new re-look at, but people are now questioning How best the climate models are going to prove themselves in the future. Since these too are based on complex computer system models.

In fact these are the same complex system based models that scientists use to predict the Global Warming related measurements analyzing the carbon emissions and their impact on the earth's environment, that financial analysts use to predict the forecasts in the industry by tweaking the required options and derivatives to suit their needs.

But the important thing to note here is, these derivatives and options are not physical in nature in the Financial Industry where these models are employed, and hence the accuracy in predicting a financial forecast can never be guaranteed, it can go wrong as in the present financial situation where these complex system based models are partially blamed.

But the question is are Climate Models too are not dependable models where the underlying parameters are infact physical and can be predicted on a given time scale. Though there can be acceptable variations in the accuracy of the models.

It is in fact due to the claim that the scientific community holds like this one " The claim is sometimes made that if computer models were any good, people would be using them to predict stock market, Well they are " writes the author of a New Scientist article giving a nod for the accuracy of the present climate models.

There is this argument that these financial models if not whole, were partially responsible for the present situation in the Stock Markets. But how far the Climate models too are not dependable is debatable.

In fact some new avenues have opened up "The credit crisis can be used to make progress in a new direction, an opportunity for global green economic growth," de Boer, who heads the Bonn-based UN Climate Change Secretariat, told a news conference. by UN Climate Chief

2008 Nobel Peace Prize, Dow's wild weekend

The 2008 Nobel peace prize has been awarded to the the former President of Finland Mr Martti ahtisaari of Finland for his peace efforts spanning three decades.



Dow ended the week with wild session mixed after a 8 day slide.

The new Home-less in US

Ever since the US sub-prime(real estate) credit crisis started, life has never been the same for many of the America's middle class, the rot is so deep and contagious that it has begun to show up in the streets. The news story which I went through highlights some of these stories which are increasingly taking place across the America's once vibrant middle class. Jobs have been lost and in the course homes too result, the citizens are now spending their nights in their 4X4 homes parked in the lots.

You can read the full story here

An Excerpt from the article:

In a car park across the street from luxury mansions, the evening brings a strange sight. A few cars arrive and take up spaces in different corners. In each car, a woman, perhaps a few pets, bags of possessions and bedding. Across the street from homes with bedrooms to spare, these are Santa Barbara’s car sleepers. Homeless within the last year, they are a direct consequence of America’s housing market collapse.

What Led to Financial Crisis ?

The Financial debacle at the Wall street has taken the world by surprise, President George W. Bush offered a bunch of explanations but held Washington completely blameless.