Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Can Olympics Solve Britain's Debt Woes?

By Candy MathesonMarket OverviewJul 25, 2012 12:28PM ET
www.investing.com/analysis/can-olympics-solve-britain%27s-debt-woes%20-130882
Can Olympics Solve Britain's Debt Woes?
By Candy Matheson   |  Jul 25, 2012 12:28PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
The 2012 Olympic Games open Friday in London and, according to some reports, are projected to cost British taxpayers more than nine billion pounds, with a hoped-for return of 13 billion pounds over four years (as suggested by Prime Minister David Cameron). That seems like a pretty big gamble as Britons struggle with recession, rising unemployment and severe public-spending cuts.

Data released today (Wednesday) shows that Britain's GDP dropped further into negative territory to levels seen in mid-2009, as shown on the graph below.
GDP
GDP

The Daily chart below of London's FTSE Index shows market action as of Tuesday's close at 5499.23. For now, major support lies at 5500 as market action from mid-2011 has been in a large trading range, defined by a triangle. In fact, the range extends back to 2009-2010 and is forming a large diamond pattern; potentially a topping pattern with a 1300 point range.

Pay Attention
A drop-and-hold below the diamond could send London's equity index tumbling -- possibly by 1300 points -- from 5500 down to the 4200 level, or lower. That'll be one to watch -- along with future GDP data releases -- along with whatever Libor fallout yet to come.
FTSE
FTSE


Can Olympics Solve Britain's Debt Woes?
 

Related Articles

Marc Chandler
FOMC: Words Not Actions By Marc Chandler - Jun 14, 2021 1

The Federal Reserve's Open Market Committee meeting is the most important event in the week ahead. It is not that it will take fresh policy action. Rather, its observations about...

Chris Markoch
How To Profit From Value Investing By Chris Markoch  - Jun 14, 2021

Simply put, value investing is an investment strategy in which investors look to buy stocks that are on sale. However, that is an oversimplification. Value investors are looking...

Can Olympics Solve Britain's Debt Woes?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email