Standard & Poor’s (S&P) have stated that they intend to reaffirm the UK’s AAA credit rating, despite the current double dip recession and threat of a triple-dip recession. The S&P states that they believe the Government will stick to it’s budget commitments and that the economy will improve in second half 2012.
Speaking to the Sunday Times yesterday, Azad Zangana the chief economist for Schroders warned that an early exit by Greece from the euro zone could push the UK into a triple- dip recession. Earlier this month the International Monetary Fund (IMF) cut it’s growth forecast for the UK by 0.6% for 2012 and 2013 in comparison to its April forecast.
House prices have fallen by 0.1% in July after being flat last month, the first fall in prices for seven months. London was the only region in the UK to register a price increase and the North East saw the biggest loss with a 0.5% fall. Prices in Yorkshire and Humberside fell by 0.2% and the number of new properties for sale increased more than 5% over the last three months whist demand over the same period has fallen by 2.2%
With all eyes on London ahead of the start of the Olympic games with the FTSE gaining 0.75 points in afternoon trading. Other European markets also showed strength, with the CAC and DAX both trading up on the day.
According to a report by the British Bankers Association earlier this week, mortgage approvals have fallen to heir lowest levels in more than three years. Mortgage loans have fallen 21% from last year and is now at its lowest since January 2009. Hopes for an improvement are resting on the new ‘funding for lending’ scheme announced last month, which will see £80 billion of low cost loans becoming available.