Hi
The markets have recovered some of the ground they lost last week. That’s a huge relief. Government action has given business and consumers a higher level of confidence and we’re seeing that flow through.
We’re not out of trouble yet and there may still be surprises in the US. Life is very tough there and both consumers and businesses are going through very difficult financial times. That will continue to impact on our markets. Any further crisis in the US will erode confidence.
In today’s paper I read that China is cutting back on steel production. Not good news for us. We are currently being cushioned by the resources boom with China as a major customer. Changes here will slow our growth.
As well, our PM expects unemployment to increase.
To help get through think about:
- make sure you have access to ready cash. Talk to your banker and make friends with an alternate banker just in case your bank says “NO”
- watch your debtors. Check your Debtor Days at least monthly. Don’t become a banker for your customers.
- reduce your debt as much as possible.
- read the papers. Keep in touch with what’s happening in the markets and review your own financial position.
Business insolvency has increased significantly over the last 3 months. Make sure your name is not on the list.
Cheers
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