Mindful Money’s news round-up: Friday 5th August 2011

5th August 2011

Story of the day:

From the New York Times, it has been three decades since the United States suffered a recession that followed on the heels of the previous one. But it could be happening again.

Time to Say It: Double Dip Recession May Be Happening

And the best of the rest:

There is a lot of panic in the financial world today:

In the Wall Street Journal, Commodities are sliding steadily lower Friday in the worst pan-asset class selloff since October 2008, as fear of another severe downturn tightens its grip on the financial markets.

Recession Fears Hit Commodities

The Telegraph is reporting, Crispin Odey, the hedge fund manager, is among a group of London based investors who drastically reduced holdings in UK banks yesterday amid the stock market carnage that sent Lloyds Banking Group and Barclays down nearly 10pc.

Hedgies lose hundreds of millions in UK banks

More banking woes from Reuters, Royal Bank of Scotland slid to a pretax loss of 678 million pounds in the second quarter, bruised by writedowns on Greek government bonds and Irish customers struggling to repay loans.

Greece and Ireland push RBS to £678 million loss

From the Telegraph, America's biggest custodial bank has been forced to start charging customers who have deposits of more than $50m (£30m) as more investors take cover from the market turmoil.

Bank of New York Mellon charges depositors

European bourses opened with more heavy losses on Friday as the wave of frantic risk asset selling leaves worldwide stocks recording eight consecutive days of declines on fears over eurozone debt and waning global growth, reports the Financial Times.

Europe equities endure more heavy losses

And from This is Money, Euro crisis is spreading, says EU chief Barroso, as Britain could be forced to pay more to stave off collapse

But the Wall Street Journal is saying we shouldn't all panic, it is only natural to be a bit scared by Thursday's market rout. But investors shouldn't let fear guide their decisions.

Time to Panic? Just the Opposite

And what is happening outside of the stock market…

In the Guardian, US conglomerate to split into an international snack business, including Cadbury, and a North American grocery division.

Kraft to slice itself in two

David Cameron and George Osborne are discussing plans to cut the 50p rate of income tax after being told that it is generating only marginal returns for the Exchequer, reports the Independent.

Osborne plans to cut 50p income tax rate

The BBC News is discussing house prices – they have gone up for the third month in a row, according to the Halifax mortgage lender.

Average house prices up slightly, Halifax says

More social media successes from the Financial Times, LinkedIn, the professional networking site that went public in May, reported a 120 per cent increase in revenues for the second quarter and a slight increase in profits.

LinkedIn reports 120% revenue increase

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