The UK government has announced details of a rescue package for the banking system worth up to £50bn ($88bn) can this rescue package avert deeper recession and the prospect of rising business insolvecy & Liquidation.
Well the markets responded with F.T.S.E. 100 down 4.8% by mid-morning, while the France’s Cac 40 lost 5.7%. Germany’s Dax fell 6.1% and earlier in Asia, Japan’s Nikkei closed down 952.58 points, or 9.4%, at 9,203, its lowest finish since June 2003. These drops in the stock market further underline the lack of confidence in the wider economy and while its uncertain how deep the recession will be its clear that a recession is coming very quickly, as identified by the British Chambers of Commerce yesterday.
The lack of commercial finance and liquid cash flow underlines the need for UK Businesses to speaking sooner rather than later with their advisers before business insolvency or creditor pressure is forced upon them.
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