Share prices set to hit 13 year low
Oct 27th, 2008 by ctoop
News Week: 27th October 2008
It was another black Monday with lots of bad financial news to start the week. £50bn was wiped off of share prices including Marks and Spencer, Stagecoach, ITV, Prudential and HBOS.
This has led analysts to predict that the price of shares will fall to their lowest for 13 years.
The International Monetary Fund who lends money to 185 nations has this week announced it will be providing Ukraine with £10.6 billion in an attempt to help out the newly bankrupt country. It is hoped that this cash injection will boost confidence in the financial markets and money will start moving again.
A manufacturer of parts for the iPhone and Xbox has predicted a drop in revenue this year as people stop buying the latest technology. They predict a drop of up to 13% on last year due to consumers cutting back and being more cautious of their money.
Tesco plans to cut its sales growth targets by up to 2%. This means that the store is expecting a downturn in sales due to people spending less on their food and potentially shopping elsewhere. The company has however launched a major discounting campaign to encourage people to continue to shop with them.
Dodge Avengers are being sold off exceedingly cheaply this week in a new initiative to sell more cars. This could mean that other car companies will soon be doing the same meaning that consumers can see the savings and afford to start spending money again.
Telecoms giant BT is beginning to flail in the falling market. The IT division has predicted a shortfall in profit of £80m in its second quarter. This substantial amount indicates how poor the current financial climate is.
People have cut down on their spending by not buying new products and economising, however today it would seem that consumers are also cutting down on how much they spend on communication.
By Charlotte Toop
