UK Investment and current situation in UK

 

UK Investment opportunities risk losing out on the continued sustained investments if the financial woes of the UK are not solved fast. Investor confidence in the UK has taken a negative turn with most investors reporting worries over the messed up financial situation the UK faces currently. With an election already done, most investors are hoping the Conservative Party takes over number 10 Downing street and embarks on a financial clean up. Even more worrying this week is the fact most banks are at risk of credit ratings downgrade because of this uncertain state of the UK’s public finance. The ever growing budgetary deficit will demand an increase in taxes and huge spending cuts that may see banks forced reduce rates.

 

The various sectors of the economy that are pivotal in attracting the best UK investment opportunities have their investors thinking about the future prospects of their investments. The UK’s deficit is expected to hit a high of 12% by end of year, the highest ever in years and in the EU. This is according to a European Commission report that was published 5th May 2010. This figure is particularly worrying; for both inward foreign investment and local investors in the UK. The consequence of this rise has been the fear that with such a figure, lots of pressure will bear upon institutions exposing investments to a scenario similar to Greece’s. Even so, investors can take ease at the fact that the UK’s triple A credit rating stands firm.

 

The stock market too was welcoming to the idea of a change of guard at 10 Downing Street. It is hoped that a victory for the opposition Conservative party will bring some required zeal in the stock market that has continued to perform frailly. Managers of most Fund holdings posited that investors would prefer a steady parliament with a majority party than a hung up one. However, the UK PLC is in fraught need for revamping to satisfy worried investors. The favorable best UK investment opportunities like the Housing market, Industry, Finance and Capital, service etc are subject to serious doubts by investors as long the situation continues the way it is.

 

However, the UK’s sturdy cash flow and earnings upgrades have been so vital in the equities market. Regardless, the equities have continued to perform well giving proper share yield to investors in that market segment as compared to the others.

 

6 May 2010