THE TELEGRAPH: Shares in London have suffered their biggest slide since the collapse of Bear Stearns in March, amid a barrage of bad news on the domestic and international economy.
Markets were shaken by a double dose of bad news for housing and manufacturing, followed by rumours that some of Europe's biggest banks are about to see their profits plunge even further.
As the second half of the year started, the FTSE 100 index of leading UK shares was 146 points or 2.6pc down to 5479.9 - the lowest close, and biggest fall, since March.
It came as:
• Economists warned that the manufacturing sector is now in recession territory after activity unexpectedly collapsed in June.
• Nationwide said house prices are now falling at the fastest rate in 16 years, with the average property having lost £14,000 of its value since prices peaked in October last year.
• Oil prices touched a new record high, with crude touching $143 a barrel.
• A YouGov/Citigroup survey showed that households' expectations for the rate of inflation leapt to a record high of 4.6pc in June, putting more pressure on the Bank of England to consider raising interest rates. Equities Tumble as Bad News Hits Home >>> By Edmund Conway, Economics Editor | July 2, 2008
THE TELEGRAPH:
House Prices Decline at Sharpest Rate Since 1992 >>> By Harry Wallop, Consumer Affairs Correspondent | July 2, 2008
THE TELEGRAPH:
The Financial Crisis in Full: The credit crunch that began in America’s sub-prime mortgage market has erupted into a financial crisis.
Bear Stearns has collapsed and the Federal Reserve has cut interest rates as it fights to return confidence to financial markets. The US economy faces recession, credit markets are in distress and the rest of the world may enter a downturn >>>
DAILY EXPRESS:
M&S the Latest Victim as UK Economy Shudders to a Halt >>> By Geoff Marsh | July 2, 2008
The Dawning of a New Dark Age – Dust Jacket Hardcover, direct from the publishers (US) >>>
The Dawning of a New Dark Age – Paperback, direct from the publishers (US) >>>
