The London Daily News

30 June, 2010 08:53 (GMT +00:00)

Its coming, "double-dip" recession fears spook markets

City News Desk

Shares in the London stock market dropped below 5,000 points yesterday amid scenes of traders in London selling off all but their safest assets, causing a a drop in prices internationally.

Spain caused major concern when officials in Madrid requested the European Central Bank to "not close its emerging funding schemes", with the FTSE 100 hitting it lowest point in ten months dropping to 4,914.22.

Figures of the likely number of public and private sector workers facing the axe leaked out in the media today projecting as much as 1.3 million facing unemployment in the next five years; with 120,000 public sector jobs lost each year, and 130,000 private sector jobs lost each year for the next five years.

House prices are likely to drop, or even crash with a potentially "lethal combination of stagnant living standards and declining mortgage approvals" according to a report in The Independent today.

VAT increases in the new year to 20 per cent are will dent consumer spending hitting businesses on the high street with forecasts for the UK being described as "bleak".

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