Starting a new business? Get 40% off our accountancy services for 3 months! 😎

x

Fears over the conditions of the world economy are continuing to grow after the markets saw big drops in banking shares, in particular French banks yesterday.

In the US, the Dow Jones index was down at the end of trading by 2.7%. Similarly, the FTSE 100 fell by 2.4% and Frankfurts Dax by 4% regardless of the new jobs plan worth £282bn revealed by President Obama.

Concerns have also been intensified by the resignation of the European Central Bank’s cheif economist, Juergen Stark and there has been much speculation as to why he would leave the bank at such a crucial time in the revival of the world economy. Some have suggested that the depature was a result of arguements over the ECB’s decision to buy debt from suffering economies in the eurozone, as the bank has already started purchasing debt from Spain and Italy despite opposition from Germany which fears the move will have negetive consequences for the bank itself and therefore Europe as a whole. In addition, there are concerns that by taking on other’s debts, the ECB is discouraging them from helping themselves.
It has been suggested by analysts that Stark’s departure from the European Central Bank could be evidence of a divide in opinions between its council members which could have damaging consequences for the eurozone economy.

The fall in shares at the end of trading yesterday closed another week of unpredictable markets whereby share costs have been up and down continuously. Leading the falls were bank shares, a result of the doubts held by investors as to their vulnerability to bad debt. However, the level of lending between banks is at its highest since 2009, which implies that they have trust in each other. Despite this fact, Barclays dropped by 9.4% and RBS by 5.4% in the UK, Societe Generale in France fell by 7.8% and the Deutsche Bank in Germany by 7%. Further, the euro fell by 1.6% against the US dollar bringing it to its lowest exchange rate in six months.

Leading economies have met to discuss what action must be taken to revive the faultering global economy but as yet it is unknown whether any decisions have been made.

About The Author

Lee Murphy

MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.

More posts by this author
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Read more posts...

What is a Non-Established Taxable Person for VAT?

There are special VAT rules in place for online sellers who are classed as non-established taxable persons (NETPs), and use an online…

Read More

The Accountancy Partnership – Our Positive Reviews

Here at The Accountancy Partnership, we’re proud of our customer reviews The reviews we receive from our customers show how hard we…

Read More

What Type of Legal Structure Should I Choose When I Start a Business?

The structure that you choose when you start a business affects how the business operates, the amount of tax you pay, how…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You will receive our bookkeeping software Pandle for free, as part of your package.

You can use this to complete your own bookkeeping, or we can provide a quote to complete your bookkeeping for you.

Please select and option below:

I will do my own bookkeeping
I want you to do my bookkeeping

Call us on 020 3355 4047 if you’re not sure.