Why does the UK Government have such low interest rates on its debt?

Like the US the UK is facing low interest rates, despite having a high budget deficit and public debt. Why is this? The UK Government issues its debt in the form of Guilts, currently the interest rate the government has to pay on a year guilt is 0.32%. This is lower even than the base Read more about Why does the UK Government have such low interest rates on its debt?[…]

Japans lost decade

Originally began in the 1990s following the collapse of a stock market and property bubble. Inflation is virtually non-existent in Japan and there has been deflation over the years. This has deterred borrowing and spending as people think if they wait to spend they can get goods cheaper, borrowing also becomes more expensive if deflation Read more about Japans lost decade[…]

Case Study: Kraft’s Hostile Acquisition of Cadbury’s

Cadburys, a British global producer of confectionary was bought out by the American Kraft in January 2010. Prior to the merger Cadburys was listed on the London Stock Exchange under the FTSE 100 Index. It was originally founded in 1824 in Bourneville. Its products include Flake, Dairy Milk and Milk Trays and the firm employed Read more about Case Study: Kraft’s Hostile Acquisition of Cadbury’s[…]

A Brief Analysis of the European Debt Crisis

The European debt crisis began in 2010 after many countries were beginning to come out of a deep recession caused by the Financial Collapse of 2007/08. Initially it was released that countries such as Greece and Ireland had huge debts. This was caused by previously low interest rates on their bonds, as well as a Read more about A Brief Analysis of the European Debt Crisis[…]

Why Tesco’s is launching a Price War

Tesco is trying to increase its market share against rivals Asda and Sainsbury’s. By reducing its prices on basic goods it is more likely to get a higher footfall, we would also expect the increase in quantity demanded to offset the money lost due to lowering the prices. This means we would expect the Total Read more about Why Tesco’s is launching a Price War[…]

Merger Case Study: Exxon and Mobil

Exxon and Mobil were 2 separate American oil companies that merged to form ExxonMobil in 1998. It resulted in the creation of the largest oil company in the world. This allowed it to reduce its costs. The first thing the new firm did was reduce its workforce by 7% (9000 workers) this is an example Read more about Merger Case Study: Exxon and Mobil[…]