UK debt loads are holding back bank profits according to HSBC's results yesterday, providing more evidence of the UK economic slowdown.
The world’s second largest bank branded the UK its most difficult market, writes The Daily Telegraph
Personal loans and credit card debt are pinpointed as chief culprits for the difficulties facing borrowers, and the bank has increased its provisions for bad debt to £1.86bn as a result.
HSBC has blamed rising interest rates, slower employment growth and a poor property market.
The issue of the state of the UK economy is also highlighted in The Scotsman, which notes yesterday’s poor numbers from the Chartered Institute of Purchasing & Supply.
The institute’s Purchasing Mangers Index for July fell further below 50 points, indicating contraction in the manufacturing sector is gather pace. Weak demand in domestic and export markets are blamed.
The Scotsman says this data is likely to be used as further ammunition by those looking to cut UK interest rates at this week’s MPC meeting at the Bank of England.
ACCOUNTANCY FIRMS MAKING millions of pounds advising firms on International Financial Reporting Standards are themselves facing erasure of their own capital bases under the new rules, writes the FT
”Under IFRS, the capital paid in by firms' partners, the bedrock of their finances, is likely to be reclassified as long-term debt, which will have the effect of assets seeming to vanish and liabilities seeming to soar,” the paper notes.
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