Money, and Tinkering Club owners

Hi everyone I am back after riding the rough seas last week in Brighton. I now have total respect for the sea and all those who risk life on the high seas. Our team bonding event was let's say an experience.

Now back to the economy and the run up to Christmas which is just a few months away. Apart from the woes of Northern Rock and the sub-prime fallout out retailers are now sending out warnings of a slow down on the high streets. Curry's who are owned by KESA the Anglo-french electrical retailer are very nervous as profits slumped £10 million to £38million, a wet summer and consumer debt woes have been cause for concern however with sterling so strong bargains are plenty, perhaps that trip to New York can now becomes a reality remember your allowance its around £145 before you start paying tax and duties.

The Dollar's problem persist and the half a point cut last week in US interest rates have not helped. The worry is that foreign investors will begin to cut the flow of money into US securities and shift to the oil rich middle east. This is the worst time for the US to be dependent on foreign inflows. The fact is Bush has allowed the dollar to fall to help the trade deficit, the problem long term allows Forex traders and investors to start a run on the dollar. What has happened is the shift in economic power has now moved to China Europe and the Middle east. Just last week oil-enriched investors started buying stakes in the London Stock exchange and the Nasdaq. Dubai bought 28% of the LSE,and 19.99% of the Nasdaq.You can bet the American authorities will take a dim light of this especially after last year'attempt by middle east investors to take over US Ports, this was blocked by congress due to security issues.

UK Banks have started reducing credit card limits and have been turning down new credit card applications as the credit cruch deepens. 500,000 Barclay card holders had limits reduced on concerns of debt and some card holders being stretched. The UK's consumer debt stands at £1.3 trillion pounds add to this the worry of bad debts, the housing slow down, expensive credit lending and consumer confidence.

The rate at which the Bank of England lends to banks stands at 6.75%, 1% above base rates so when they made £10 billion available for the money markets they found no takers. The bank expect recent market developments to reduce significantly lenders capacity to extend corporate credit over the next few months. If companies can't borrow you then have the risk of business confidence being hit also investment and jobs. Look for a cut in the base rate before Christmas.

On closing be careful what you wish for, Roman Abramovich's parting of the ways with head coach Jose Mourinho could come back to bite him in the rear. Why sack your most successful head coach who has won more honours in three years, then what the club did in 100 years.Tinkering moneymen and football don't mix remember Michael Knighton?
The man who claimed he'd received a telepathic message from a UFO saying "Don't be afraid Michael" he kicked out manager Mervyn Day at Carlisle and installed himself as coach. Result? United got relegated to division three, Roman you have been warned....