The Uk economy

it is- but it wasn't trashed by Labour- it was trashed by 14 years of Cons, and a very short spell of Liz Truss.

Sterling is currently at its lowest ever.

It is currently in a bad state. The pound has fallen to its lowest level in over a year, while UK borrowing costs hit their highest for 16 year and if it is to service its debts and not borrow more to fund routine expenditure, it is going to need to raise taxes or cut spending.

As a result business confidence is low, share prices, even of successful companies like M&S are falling. International trust in our economy is low and the antics of Trump and Musk are not helping.

The housing market is almost dormant. Exactly who is going to buy all the houses the government are going to insist LAs get buits is anyone's guess, and how LAs get developers to build houses they cannot sell is also not addressed.

The plus signs? well most of the supermarket and food retailers had a good Christmas, increased sales and profits, Sainsburies is giving its staff above inflation pay rises, but is cagy about hiring more staff. If you have a job, hold on to it tightly.

I was hoping that Gnetters were going to cheer me up!
That is what has happened in the past on here.

I think uh oh about the economy, and get some sense of balance talked back into me.

Claremont

it is- but it wasn't trashed by Labour- it was trashed by 14 years of Cons, and a very short spell of Liz Truss.

Sterling is currently at its lowest ever.

No,
The exchanges closed at £1.21 against the dollar after steadily falling this week
Lowest ever in recent times ( ever?) was £1.08 during Brexit and Truss times.

Worries about UK inflation and have and is Labour’s plan going to work, we don’t need any more bad financial news.

The economy is in a bad state. It's not irretrievable, but Reeves is not the person to retrieve it. Neither are any of the other UK political parties, they all follow much the same economic beliefs.

Can't say anything to cheer you up I'm afraid, fancythat.

It appears that the Financial Times thinks that Musk is plotting to have Starmer removed from office. the story is behind a paywall I'm afraid:

www.ft.com/content/dd4b066c-30a1-4ce4-a95e-82c334a740cf

This is a snippet from it:

Elon Musk has privately discussed with allies how Sir Keir Starmer could be removed as UK prime minister before the next general election, according to people briefed on the matter.

Musk, the world's richest man and key confidant of US president-elect Donald Trump, is probing how he and his rightwing allies can destabilise the UK Labour government beyond the aggressive posts he has issued on his social media platform X, the people said.

That's a fun idea, isn't it...

There is no particular reason why sterling and the price of government bonds (on the secondary market) should have fallen so sharply; either bond traders have taken a collective panic fit (which is not unknown) or they have been influenced by someone or something...

Of course, Musk doesn't understand how our constitution works and thus that the parliamentary majority enjoyed by Labour more or less guarantees its continued hold on government. If anyone is likely to go it's our incompetent Chancellor, not the PM.

Reeves is off to China to presumably negotiate us taking even more of their rubbish goods in exchange for them taking a fraction of ours, which they can then copy before selling them back to us Meanwhile back here, its all going swimmingly, pounds falling in value against the dollar and the euro, businesses are cutting back on hiring and will have to hike their prices, once prices rise there will be demands for pay rises to keep pace, inflation will be up, there's still a dire shortage of housing, that most people can't afford, gas supplies are concerningly low. Other than that it's all good and we can sleep safely now the adults are in the room and determined to grow the economy.

Much the same story with the Euro, after the Christmas/new year break, it’s the speculators testing the market, there doesn’t need to be any logic.
Their only aim is to make money short selling, we will see what happens Monday, Starmers feud with Musk does not help one bit.

His feud? Like, what did Starmer do to create it?

MaizieD

It appears that the Financial Times thinks that Musk is plotting to have Starmer removed from office. the story is behind a paywall I'm afraid:

www.ft.com/content/dd4b066c-30a1-4ce4-a95e-82c334a740cf

This is a snippet from it:

Elon Musk has privately discussed with allies how Sir Keir Starmer could be removed as UK prime minister before the next general election, according to people briefed on the matter.

Musk, the world's richest man and key confidant of US president-elect Donald Trump, is probing how he and his rightwing allies can destabilise the UK Labour government beyond the aggressive posts he has issued on his social media platform X, the people said.

That's a fun idea, isn't it...

There is no particular reason why sterling and the price of government bonds (on the secondary market) should have fallen so sharply; either bond traders have taken a collective panic fit (which is not unknown) or they have been influenced by someone or something...

Of course, Musk doesn't understand how our constitution works and thus that the parliamentary majority enjoyed by Labour more or less guarantees its continued hold on government. If anyone is likely to go it's our incompetent Chancellor, not the PM.

Yes, I saw that in the FT today. So much for people talking about how wonderful he is for bringing things up..

The 'feud' is not of Starmer's making, David.

Please don't present it as such. It isn't a feud, it is a megalomaniac interfering with the domestic affairs of another country. A megalomaniac who actually wants to remove our democratically elected PM...

Thanks, Wyllow. I'm relieved to find that someone else, at least, reads the FT

I look at the front page of the papers every morning on I player Maizie and it was there, and I can enlarge to read the full article. Just further disgusted that people can sit and applaud this man who is trying to wreck our economy and well being generally by stirring rouble.

"The housing market is almost dormant. Exactly who is going to buy all the houses the government are going to insist LAs get buits is anyone's guess, and how LAs get developers to build houses they cannot sell is also not addressed." M0nica

If no-one is buying, perhaps supply and demand will mean that their prices will lowered and more people will be able to afford them, so that there will be less pressure on the queues for rented social housing? Perhaps LA will even be able to buy them (or have them built) to rent?

Housing Associations will buy some, availability of mortgages will regulate prices and interest rates will regulate the price buyers can afford. If the new houses don’t sell builders stop work.

Wait until April before assessing the housing market.

"Starmers feud with Musk . . " What feud?

An unelected wannabee "power-broker" in another country bombarding an elected PM with criticism in the hope that enough of it will stick to cause him to be removed from office, while the said PM refuses to be drawn into a slanging match, is not a "feud"!

In particular, it is not Starmer's feud. I suppose it could just be possibly labelled as "Musk's feud with Starmer", as it seems that Musk is obsessed with the UK's PM.

MaizieD

The 'feud' is not of Starmer's making, David.

Please don't present it as such. It isn't a feud, it is a megalomaniac interfering with the domestic affairs of another country. A megalomaniac who actually wants to remove our democratically elected PM...

👏👏👏👏👏

David49

Housing Associations will buy some, availability of mortgages will regulate prices and interest rates will regulate the price buyers can afford. If the new houses don’t sell builders stop work.

Wait until April before assessing the housing market.

Possibly, but the old house hunting patterns have changed. Rightmove normally has its busiest day on Boxing day, and one agent in the town we are looking at released 6 houses onto RightMove late on Christmas day, ready for all those dreamers and new year new house people Only 1 was new to the market, the other 6 were all price reductions. When I spoke to my estate agent she said, Boxing day this year was a damp squib with viewing numbers well down on average.

Certainly in that town developers have stopped building and are reducing prices. Rising interest rates and new rules saying rented houses have to be upgraded to reach minimum insulation standards, among other things, are putting pressure on Housing Associations and the extent that they can borrow for new building.

My DD is hoping to move house in early March, a sale made this time last year. She has been asking removal men for quotes for moving her to her new home and is amazed how low they are compared with the quotes she was getting this time last year, they are also trying to under cut each other, by asking her to contact them if any one quotes lwoer than them. Not a hopeful sign for the housing market.

Interest rates are a pain for those on modest wages, further up the price range it’s buying chains, you just don’t know if it will break. New build will often take your present house in part exchange, that’s a big plus, removing all the uncertainty of a chain.

With the economy in the balance very uncertain times, sensible buyers will be cautious, sellers sit tight. Cash buyers may find a bargain that has to be sold.

A slow down in the housing market might mean a freeze on price rises or even a drop.

That would be good news for my grandson!

House prices are already falling and have been for the past year. There are a few areas bucking the trend, but overall prices are falling.

The reason houses are not selling is not affordability, it is economic uncertainity. The number of people who would like to move is as buoyant as ever, but most are just delaying it until thigs are more certain. We are downsizing and will not need a mortgage, but if we cannot find a buyer, we cannot become buyers, cash buyer or no cash buyer.

Son works for a merchant bank in the City, it’s not good.

What does your son think is 'not good', Sago?

TerriBull

Reeves is off to China to presumably negotiate us taking even more of their rubbish goods in exchange for them taking a fraction of ours, which they can then copy before selling them back to us Meanwhile back here, its all going swimmingly, pounds falling in value against the dollar and the euro, businesses are cutting back on hiring and will have to hike their prices, once prices rise there will be demands for pay rises to keep pace, inflation will be up, there's still a dire shortage of housing, that most people can't afford, gas supplies are concerningly low. Other than that it's all good and we can sleep safely now the adults are in the room and determined to grow the economy.

😂Had to laugh tho your summary seems pretty bang on to me.
I cannot believe that things are so bad in just six months of a new Labour government.Gobsmacked doesn’t cover it.