The CBI has predicted the UK economy will contract by 3.9% in 2009, more than twice the amount predicted by Alistair Darling late last year. The euro has reached a one month low against the dollar amid concerns that the ECB is not doing enough to safeguard the ailing eurozone economy and US leading indicators released today are expected to show signs of recession easing in the US.

Pound Sterling - UK Markets

Sterling has lost ground against its major currency partners this morning, having declined over 1% against the US dollar and Japanese yen as the looming budget puts pressure on the pound.

The CBI have predicted the UK economy will contract 3.9% in 2009 with a total economic contraction of 5.1% by the end of the recession. This is more than twice the decline predicted by Alistair Darling in his pre-budget report and Wednesday’s budget is expected to downgrade economic forecasts while highlighting increased government borrowing. However recent economic news shows the pace of decline is slowing in both the US and UK and the CBI expects the economy to return to positive growth by the second half of 2010. While the pound remains weak internationally, this could aid recovery through more competitive pricing and there is a reported 1.8% increase in house prices in March. There is no major data released in the UK today.

US Dollar - US Markets

The dollar is stronger this morning, reaching a one month high against the euro and gaining over 1% on the pound after a better than expected performance from Citigroup on Friday boosted Wall Street and global equities. Citigroup reported a profit of USD1.6 billion, its first in nearly 2 years and this improved market sentiment and added to the view that the US economy may be taking its ‘first steps’ towards recovery.

Today Bank of America, Google and Yahoo are to release corporate earning figures and this could lead to a further revival of risk appetite. The leading indicators index is also out today and this is expected to show an easing of recession in the US as Federal cash injections and lower interest rates are work to boost spending and investment. Consumer confidence figures and jobless claims are due out later in the week.

Euro – European Markets

The euro has declined against the US dollar and yen this morning but improved against the pound ahead of the UK budget due on Wednesday. Dropping below 1.3 versus the US dollar, the euro has reached a one month low amid concerns the ECB is not doing enough to protect the eurozone economy. The euro has also hit a 3-week low against the yen.

As the US and UK economy are starting to show signs of the recession easing, the decline appears to be deepening across the eurozone and this, along with mounting concerns over the effectiveness of the ECB is placing the euro under pressure. Comments from ECB members Axel Weber and President Trichet last week also increased speculation of further interest rate cuts. There is no major data released in the eurozone today with Germany’s producer price index and ZEW economic sentiment survey out tomorrow.

Other Currencies - Highlights

Currency exchange rates for the Australian and New Zealand dollars continue to shadow investor appetite for risk. After reaching a 6-month high against the euro on Friday with news of Citigroup profits, the Aussie and Kiwi dollars have slumped this morning with rumours of splits in the ECB leading investors to favour the safe haven currencies. Figures out this morning show Australian producer prices fell 0.4% in the first quarter of 2009 and are running at a 4% increase on the year.

The yen continues to strengthen despite declining export figures and the deteriorating Japanese economy. The Bank of Japan is expected to slash economic forecasts this week as consumer demand collapses and the Japanese economy is expected to contract by 4.2% in 2010. Japan’s leading economic indicators and Canadian foreign investment figures are released today.

Anyone living here in the UK will know of the current issues facing the country with regards to unemployment, it is on the news, radio and in the papers every day and has been pretty much for the past year or so.

According to the National Statistics, the unemployment rate was 6.5 per cent for the three months to January 2009, up 0.5 over the previous quarter and up 1.3 over the year. The number of unemployed people increased by 165,000 over the quarter and by 421,000 over the year, to reach 2.03 million. The unemployment level and rate have not been higher since 1997.

The recession, of course, is not restricted to the UK; in fact it seems to be a lot harder in other countries than we are currently seeing here. In all four corners of the globe, unemployment generally seems to be rising, with some countries reporting a sharp increase in job losses.

We thought we would have a look at some of the key countries around the world and see how badly the recession is affecting them.

USA

Over in the USA, in March 2009 the unemployment rate hit 8.5%, which equates to around 13 million people now unemployed in America. According to the BLS (U.S. Bureau of Labor Statistics Division of Labor Force Statistics ) In March, the number of unemployed persons increased by 694,000 to 13.2 million, and the unemployment rate rose to 8.5 percent.

Spain

The BBC website reported that Spain’s unemployment rate, which was already the highest in the eurozone, hit 13.9% in the last quarter of 2008. In real terms, this meant that around 3.2 million were reported out of work in the later parts of 2008, which will of course have risen in the first quarter of 2009.

Germany

The BBC once again lead the reporting news, with its website informing us that Germany’s unemployment rate rose to 8.6% in March of this year as the global economic downturn continued to tighten its grip on Europe’s largest economy. This equates to 3.4 million people, an increase of 69,000 on the last quarter.

China

One of the leading online newspapers for China, ChinaDaily.com reported that China’s urban registered unemployment rate jumped for the first time in five years to 4.2 percent as of Dec 31, the Ministry of Human Resources and Social Security. They also went on to say that during the fourth quarter of last year, the number of registered jobless urbanites jumped to 8.86 million, 560,000 more than that in the third quarter.

Australia

Australia’s unemployment rate jumped to 5.7% in March from 5.2% the previous month, the biggest monthly rise in 18 years, official figures have shown. This means that the unemployment total increased by 52,900 in March to 650,900. “We predict the peak in the unemployment rate will be between 8 and 9% in the second half of next year,” said Besa Deda, chief economist at St George Bank.

Just by looking at five different countries on four different continents, I think it is clear to see that every country is suffering, with some suffering more than others. Unemployment trends have always been somewhat of mystery if it doesn’t effect the reader, but overall it is quite clear to see that unemployment is up, jobs are down and the amount of businesses closing their doors continues to rise.

And with the news yesterday that some people think it will take to 2012 to recover, now is a great time to look for alternative investments, as these could possibly give you the income to survive the next couple of years.

The head of the Organisation for Economic Cooperation has echoed a statement from the IMF by saying that the world economy will most likely shrink this year. Angel Gurria, head of the body that represents the 30 most industrialised nations, said, “We are probably seeing a world which will go negative.”

Pound Sterling - UK Markets

A report from the Confederation of British Industry claims that demand for UK exports has slid to a new low, despite the 25% fall in the Pound over the past year. The business lobby group said that 51% of firms reported that their export order books were below normal in the past month. It is the lowest level for this measure in a decade. The finding will dash hopes that the weak Pound will help support the UK economy throughout the recession. Meanwhile, expectations for export orders remain close to a 30-year low.

Although UK economic data this week has continued to point to a deep downturn, Sterling has risen against the US Dollar today. The US currency set for its biggest weekly percentage fall since the early 1970s after the Federal Reserve’s shock move this week to buy long-term Treasuries.

US Dollar - US Markets

The House of Representatives have voted in favour of a bill to levy a 90% tax on bonuses over $250,000 from firms bailed out by taxpayers. The move follows outrage over the decision by AIG to award its employees $165m in bonuses after taking $170bn in aid from the government. House Speaker Nancy Pelosi said, “We want our money back and we want our money back now for the taxpayers.”

With the Federal Reserve introducing quantitative easing after the unexpected announcement that it will start buying Treasuries, the Dollar is trading near a two-month low against the Euro, and is heading for a record weekly drop. The US currency is on course for a second weekly decline versus the Yen and both the Australia and New Zealand Dollars are also heading for third weekly gains against their American equivalent.

Euro – European Markets

The EU has said it may double the amount of emergency funding to help members in need of urgent budget support to €50bn. European Commission President Jose Manuel Barroso said he was confident the deal would be reached on the final day of a two-day summit in Brussels.

Spain continues to experience one of the Eurozone’s most pronounced economic downturns, with a Spanish Statistics Institute report showing that Spanish industrial orders fell 30% on the year in January, the biggest drop since 2002 when the country began recording the data. Orders for durable consumer goods dropped 33%, while non-durable consumer goods orders decreased 7.8%.

Other Currencies - Highlights

Asian currencies rose, and are heading for their best week against the US Dollar this year, following optimism that stimulus spending plans will avoid a deeper global recession.

South Korea’s Won and Taiwan’s Dollar rallied after central banks in the US, Japan and the UK announced plans to buy bonds, increasing the supply of Dollars, Yen and Pounds. The MSCI Asia Pacific Index of regional stocks was set for its biggest weekly advance since August 2007 and the cost to protect Asian debt outside Japan fell.

Not exactly unexpected news this morning, but for the first time since 1997 the UK unemployment rate has risen above two million.

According to the National Statistics Website, the number of jobs in December 2008 was 31.32 million, down 203,000 on the quarter and down 284,000 over the year. This is the largest quarterly fall in jobs since September 1992. Most sectors have shown falls in jobs over the quarter with the largest fall occurring in finance and business services (down 102,000).

They also reported that the unemployment rate was 6.5 per cent for the three months to January 2009, up 0.5 over the previous quarter and up 1.3 over the year. The number of unemployed people increased by 165,000 over the quarter and by 421,000 over the year, to reach 2.03 million. The unemployment level and rate have not been higher since 1997.

Separate reports released by the British Chambers of Commerce (BCC) and CBI have both predicted that unemployment will rise above around three million in the later parts of 2009 and into 2010.

Although the news is not really a massive surprise for any of us, it is a clear indication of the struggle the country is facing with respect to keeping business flowing and people in jobs.

But, we do have to look at the bigger picture in this report. In December 2008, employment was standing around 31.32 million, which is still the large majority of this countries work force in employment. When you look at the figures, they do look worrying and deeply disturbing, but when you take into account that even if the unemployment rate does rise to 3 million next year, will still leave, at this moment in time, 30 million people still in work. Or, out of 100% of the nation’s work force, 92% should still be employed in 2010, if current reports are anything to go by.

When you compare this to other countries, the UK is actually doing quite well, despite recent indications that the UK is going to be hit the hardest by the current recession and economy downfall.

Anybody currently facing redundancy, going through it or looking for a new job after suffering it will of course see things very differently, and quite rightly so, but in the grand scheme of things, well over 20 million people out of a work force of around 25 million people will still be bringing home a wage packet for the rest of the year and beyond.

And with news of various supermarkets and fast food outlets looking to create thousands of jobs within the next few years, we should see a few more of the unemployed being able to find a job, albeit depending in your area and skill set.

The Bank of England announced yesterday that it is to take unprecedented steps to ease the recession; £75 billion will be injected into the British economy over the next three months.

Pound Sterling - UK markets

The Bank will embark on quantitative easing next week, a measure that will see more money printed, after the monetary policy committee cut the bank rate for the sixth time since October. The rate is now 0.5% - a level previously unseen in the Bank’s 315-year history.

Mervyn King, the Bank’s governor, said it was unlikely that the bank rate could go any lower and policymakers are now focussing on creating money instead. Chancellor Alastair Darling has given the Bank permission to create £150bn – 10% of the annual output of the economy – by purchasing government gilts and commercial assets.

Gilt prices rose sharply following the announcement, but stock markets on both sides of the Atlantic suffered a heavy sell-off amid concerns that the health of the insurance sector had been jeopardised by the credit crunch.

Halifax, Britain’s biggest mortgage lender, said house prices fell by 2.3% in February and were almost 18% lower than a year ago, while the Society for Motor Manufacturers and Traders said sales of new cars were down 20% on February last year.

Following this was news that the board of Lloyds Banking Group met last night to consider a government-backed deal to insure up to £250bn of its most troublesome assets. If the deal goes ahead, the bank’s management would have to cede majority control to the state.

All this meant that the Pound tumbled. The Dollar gained against the sterling and the Euro on the back of the interest rate cuts. The Pound slid to 1.1221 against the Euro and is now around 1.4220 against the Dollar.

US Dollar - US Markets

However, the US Dollar dropped more than a one percent against a host of currencies overnight, reversing these recent gains, as investors braced for data that is expected to show that the US jobs market took a severe knock in February.

Economists expect the US economy lost a massive 648,000 jobs in February, with the unemployment rate rising to a 25-year high. Speculation that the figure could reach 1 million has hit the Dollar hard.

Although recent bad economic news has tended to be positive for the Dollar as investors have flocked to the perceived safety of the U.S. currency, analysts said investors’ immediate reaction to talk of such a horrendous number was to sell.

The Euro gained 1 percent against the Dollar to 1.2695.

Euro – European Markets

The European Central Bank cut its interest rates yesterday by half a percentage point, down to 1.5% - the lowest level since single Euro rates were introduced in 1999. ECB president Jean-Claude Trichet said interest rates could fall further from their current level but he stressed that they were already very low.

The ECB also slashed its inflation forecasts from 1.8% to 1%. The new inflationary target is significantly lower than the ECB’s stability objective of 2% and gives them scope to lower rates further.

Other Currencies - Highlights

The Swiss franc was a major gainer, with the Euro tumbling to a four-month low against the currency, with analysts saying the Swiss unit has briefly resumed its safe-haven status amid intensifying concerns about a severe global economic downturn.

The Australian Dollar reached a two-day low against the Euro.

Aside from a certain former banking executive and his pension, the main discussion this week has seen many people in the industry and financial world talking about whether they would or they wouldn’t.

The answer came to light about an hour ago. They did.

The Bank of England’s Monetary Policy Committee today voted to reduce the official Bank Rate paid on commercial bank reserves by 0.5 percentage points to 0.5%, and to undertake a programme of asset purchases of £75 billion financed by the issuance of central bank reserves. Never before have we seen a rate this low which was also accompanied with the news that the BOE would be pumping more money in to the country to help increase spending.

The statement from the Bank Of England website read:

“At its March meeting, the Committee noted that the February Inflation Report had implied a substantial risk of undershooting the 2% CPI inflation target in the medium term and that a further easing in monetary policy was likely to be needed.  Data released since the finalisation of the Report had not materially altered that prospect.  Accordingly, the Committee concluded that a further easing in the stance of monetary policy was warranted.  But the Committee also noted that a very low level of Bank Rate could have counter-productive effects on the operation of some financial markets and on the lending capacity of the banking system.  On balance, the Committee decided to reduce Bank Rate by 0.5 percentage points, to 0.5%.

The Committee judged that this reduction in Bank Rate would by itself still leave a substantial risk of undershooting the 2% CPI inflation target in the medium term.  Accordingly, the Committee also resolved to undertake further monetary actions, with the aim of boosting the supply of money and credit and thus raising the rate of growth of nominal spending to a level consistent with meeting the inflation target in the medium term.”

Like a boxing match, you will have two corners today, one of which will be dancing around the ring with their hands in the air, and the other who is sat on the stool with a feeling of a sharp kick in the stomach. If you have a tracker mortgage, today’s news will leave you feeling pleased, if not ecstatic, but if you rely on or have savings accounts, things are not looking so rosy.

So, when you go down the pub tonight, the people smiling have a mortgage, the people with half a pint, a gloomy look and possibly the hint of a tear in their eye have simply been doing what we have always been told to do, saving their money in a bank or savings account.

The Pound is sitting lower this morning against the Euro and US Dollar after RBS has posted the largest loss in corporate history. The bank which is now 68% taxpayer owned lost £24 billion in 2008. In combination with GDP figures which showed the UK economy contracted -1.5% in the fourth quarter, this news damaged the exchange rate value of Sterling, sending it back to the bottom end of ranges against its international currency partners.

Pound Sterling - UK markets

The Pound has lost ground against the US Dollar and Euro overnight, declining to 1.42 and 1.11 respectively after GDP figures revealed a sharp contraction in the fourth quarter of 2008. The Pound is also down against the Swiss Franc and Australian Dollar, but has gained on the Yen and other Asian currency partners.

The Pound declined yesterday as GDP figures revealed a sharp 4th quarter contraction of an unrevised -1.5%. A breakdown of these figures showed a 4.5% decline in industrial production and a 2.3% decline in investment. The only expansion came from Government services which grew by 1.5% and David Blanchflower of the MPC is predicting first quarter GDP to be significantly worse. This morning the Pound has suffered further following news that RBS posted a loss of £24.1 billion in 2008, the largest in corporate history. This was blamed on ‘unprecedented turbulence’ in financial markets and the bank expects further difficulty throughout 2009. After paying the government £6.5 billion worth of preferential shares to take part in the Asset Protection Scheme, the bank is to place £300 billion worth of troubled assets with the UK taxpayer. Nationwide building statistics released this morning show house prices have fallen 1.8% in February, taking the average house price down 17% from a year ago. There is no further data in the UK today.

US Dollar - US Markets

The Dollar is down against the Pound and Euro this morning as weak home sales figures yesterday damaged the Dollar’s safe haven image. The Dollar is also down against the Canadian, Australian and Kiwi Dollars as markets retain a small appetite for risk in the wake of comments from Ben Bernanke and President Obama yesterday.

News that US home sales fell by 5.1% in January capped Dollar gains yesterday. The Federal Reserve expects an upturn in growth to take place in the third quarter of 2009 and despite recent rallies, this news is muting the tone in UK and European equities, as growth here is expected to follow the US by approximately three months. A raft of US data is out today from jobless claims to durable goods orders and market sentiment is likely to be the primary determinant of currency exchange rates.

Euro – European Markets

The Euro is up against the US Dollar this morning, trading at 1.27 and the Euro-Pound exchange rate is currently 0.89. The Euro has also strengthened on the Yen and it’s other Asian currency partners.

European equities remain positive this morning following Ben Bernanke’s announcement that the Federal Reserve would not be looking to nationalise major American banks. UBS shares rose yesterday after Switzerland’s biggest bank hired the former CEO of Credit Suisse to restore market confidence. The news was interpreted positively by markets and Europe’s Dow Jones climbed 1.9%. The German unemployment rate has risen to 7.9% as a further 40 000 people were made jobless in February as recession deepens in the Eurozone’s largest economy. Today markets will be interested in consumer, industrial and economic confidence figures to be released in the Eurozone.

Other Currencies - Highlights

The Yen fell to a three month low against the US Dollar and weakened against the Euro overnight after figures yesterday revealed a 46% drop in exports. The Yen is heading for its worst month against the Dollar in 13 years and faces threats to its status as an international safe haven as the country is hit increasingly hard by the global recession. A series of significant data is released in Japan today, including industrial production, consumer price index and retail trade figures.

£130 per month profit from month 1, guaranteed for 12 months?  It’s Discover and Invest of course!

Following on from our ambulance and renewable energy offers, Discover and Invest is pleased to announce yet another income generating opportunity that is sure to deliver.

Chris Davidson, Managing Director for Discover and Invest tells us that “whilst sourcing for 2009, and although we usually get involved in alternative income generators, we noticed that the UK property market was starting to show real value.  Prices had fallen, yields had risen, and a good quantity of cheap stock was available to the market.”  Therefore as usual the problem is separating good deals from bad.

Davidson continues: “there are various problems facing would-be  property investment buyers today: lots of stock without tenants resulting in poor cashflow forecasts, problems getting finance because the rental valuation coverage is too low (125% minimum these days), valuations getting downgraded too often meaning valuation funds are risked time and time again only to find the deal falls through.  Finally, in a market where the value is good and the immediate bonus is strong cashflow from rentals, how do you secure the rental income?”

We’ve finally come up with a deal that knocks the socks off just about all property deals at the moment.  Firstly, our deals guarantee a 20% discount from today’s RICS valuation, with only a 5% net deposit down.  The properties we are sourcing are rentbacks, so you have quality tenants in your property from day 1, paying from day 1…so no worries about finding tenants, how long it will take to get them in, and whether they will look after your property!  Remember the property used to be the new tenant’s home, so it will be filled with their own furniture, etc.  This is much more likely to mean you have stable cashflow and good quality tenants.  The new tenants also sign 12 month contracts on premium rent, meaning excellent cashflow and low hassle for you as the rental management company is in place.  Furthermore we have teamed up with Endsleigh Insurance to provide their rent guarantee scheme.  This secures your rental income for a period of 6-12 months.

We are also so confident that the valuations are accurate, we will pay for the buyer’s valuation, means no funds are risked.  If the valuation is downgraded, the seller will have to downgrade proportionately.  If they physically cannot, all parties walk away from the deal and no funds have been risked!  Furthermore, lenders need to see 125% minimum rental valuation coverage, so we will only supply properties that stick up unless the buyers pays in full with cash.

Our first property is being released on Tuesday in Cheshire.  Valued in the last few weeks at £115,000, the property is available for £92,000.  Monthly cashflow after mortgage, rental management and insurance comes to a whopping £134 per month!  Total net buying costs are £8,450 so this gives a return on capital employed of around 19%.  With £23,000 of built in equity as of today, there is sufficient leeway if the markets falls, and also built in profit for when the market recovers.  If you were to sell your property in a year’s time for the same price plus your rental income, you would have made a return of 250% on capital employed!

Chris Davidson Managing Director of Discover and Invest states that: “many analysts believe we are in a U curve recession now.  Property prices are nearing the bottom in a similar way to what has happened in Florida.  The bottom may take a while to turn but it also gives strong investor signals to buy up stock at value prices.  We are all taught to “buy low, sell high” and the first part of this equation is nearing the right point for many.  Now it is about finding the right deal.”

So yet again, Discover and Invest has hunted out the right deal for this market: accurate discounts, low risk, strong cashflow and secure income.  If you take the view that we are nearing the bottom, why not check out the deal at www.discoverandinvest.com

It appears that the first chunk of money RBS received wasn’t quite enough. As predicted by many, another bailout has been announced, and it is also being predicted that it will not be the last.

We surely have to start questioning the government’s role in this episode. Having part-nationalised the bank, the government have representatives at board level, in theory to steer the bank to safety and to get it lending again. So far it appears neither has happened.

What also seems to be the case is the lack of transparency where the level of debt is concerned. Do we really not know the total level of debt that RBS owes? Why is that? Gordon Brown today has said he is “angry” with RBS for the debt but how is it he did not find out about this at the last bailout?

Whilst this chaos continues apace, the taxpayer is continuing to foot the bill. Some say this is essential to the economy as we cannot have the banks failing, which we can’t. However, it does have the taxpayer over a barrel. The biggest problem is the huge sums involved. What does billions of Pounds mean in reality for the taxpayer? We aren’t going to know for a year or two that’s for sure. The effect on the economy then , in terms of inflation and increased public debt, could be worse than the problems we face today.

It is difficult to know where this will all end. With light regulation, private sector firms deemed too big to go out of business are safe in the knowledge that the taxpayer pot is available to save them. The biggest case to answer is the lack of transparency however, not just here but also in the US. Our elected representatives are taking measures on our behalf that is not only costing an astronomical and unprecedented amount of money, but that also concerns our savings. In light of the seriousness of this episode, we as citizens have a right to know how the funds are being spent and what the true state of the balance sheets of these companies really are.

There are many ways to keep ones self amused on a cold Sunday lunchtime in January at Greenwich station, particularly having been guilty of assumption that the trains are running. “there’s one every 10 minutes or so” is the thought that runs through the head as one rushes hurriedly to the door as opposed to booting up the laptop and checking the travel situation. Good old British complacency strikes again, and I am guilty once more. So I only have myself to blame as I look up at the destination boards to reveal that engineering works have put paid to the trains for the day. A quick sigh of disappointment is overcome by remembering that the Docklands Light Railway also runs from Greenwich. I’m saved! I’ll catch that to Lewisham and get a train from there in to London and not be late for the lady after all.

You guessed it. The Docklands Light Railway, that’s closed for engineering work too. As I begin to re-evaluate my options and come up with a convincing excuse for my impending lateness, I witness an individual querying a beleaguered official with what appears to be the same heated question; the shrug of said official’s shoulders suggesting that he is giving the same answer for the umpteenth time. As I walk past towards the bus stop he shakes his head and mutters “Thatcher’s got a lot to answer for”. Has she now?

He is clearly referring to one of the knock-on effects of the much lamented private finance initiative which whilst arguably a Thatcherite idea, if I remember correctly it came to prominence under John Majors administration. Whether I’m right or wrong I have no intention of arguing that point right now, but one thing of which I’m certain, the PFI was introduced as a scheme for private sector business to perform varying functions within the public sector and despite initial Labour party opposition seems to have flourished considerably under the Blair years. I wonder if they still refer to it as back door privatisation!

Now whilst I cannot point my finger at the government for my lack of travel panning nor the cold shoulder I encountered upon my delayed arrival, do I, the aggrieved official or anyone for that matter have the right to blame the government for complacency of another kind? When I say this I mean the knock-on effect of allowing private sector companies to perform public sector functions, or not perform them in some cases. Can this be the reason why in London we have been hit with engineering works virtually every weekend as the ageing railway infrastructure reaches critical mass and forces the parent companies to do what they should have done progressively over time?

Conspiracy theorists would no doubt be the first to say so. Alternatively, would this have been noticed by the National Audit Office and corrected accordingly? My opinion is that of course it would should they have had the need to, but the rail operators have not been under government control for a good few decades now, thus no longer public sector, and thus accordingly would not fall within their jurisdiction.

So whilst Mrs Thatcher might actually not have a lot to answer for on this occasion, there are several gaps in the public sector where decades of neglect have fallen beneath the NAO radar and caused the need for immediate action. This presents tremendous opportunities for investors to involve themselves with new private sector businesses exploiting these niches and generating high volumes of profit in a short time.

So in these times of recession, why blame the alleged follies of previous governments? Why not instead scratch beneath the surface and see what level of income these opportunities can generate for you. In every recession there are recession proof schemes, and it is within these sectors that I believe they will be found.