Buy a new car? Not this year says the UK motorist!

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Buy a new car? Not this year says the UK motorist!

Everyone who has ever taken possession of a brand new car will never forget that "new smell" that it gives off. However in the recession hit Britain of 2009, it is fair to say that not too many people are enjoying the experience for the moment. Recent figures released by the Society of Motor Manufacturers and Traders (SMMT) continue to mirror that the UK public are steering well clear of the new car showrooms. In March 2009, over three hundred brand new cars hit the UK streets, which seem a lot until you consider that the figure is down more than 30% from the corresponding month of last year.

SMMT chief executive, Paul Everitt encouraged the UK Government to do more to boost consumer confidence, and that January's £2.3 billion rescue package launched by Business Secretary, Lord Mandelson was not enough. Everitt stressed that other European countries have introduced a scheme, which pays consumers to get rid of their old cars, The scheme is proving more successful, with Germany, for example, having reported a 40% increase in new car sales for March..

On a sunnier note, reports that income for the UK advertising industry appeared to have leveled out have been announced. The news comes despite the fact that almost half of the major UK advertisers have significantly reduced their first quarter marketing budgets.

Despite that piece of seemingly news , results were an improvement on last year's fourth quarter last year according to a recent report.

Signs that things continue to be tough came with news that UK charities are reporting a significant decrease in donations as well as a likewise increase in demands for help among the Great British public. The sad fact is that almost one thousand registered charities closed their doors within the past two years, and in the last quarter or 2008, donation levels fell by more than 60% from the corresponding year.

On the Stock Exchange, shares took a minor step backwards in most cases,

Mining conglomerate Rio Tinto Plc dropped back by 11percent (240 pence to 2208) after news that their proposed stock sale to Chinalco might not go through.

Europe’s biggest bank HSBC Holdings Plc were still riding a wave yesterday after a highly successful rights issue. The bank's shareholders took up almost all the shares on offer, raising about $19 billion in the U.K.’s largest rights offer. Shares in HSBC rose 3.7 percent (18 pence to 450.75)

Britain’s third-largest supermarket chain J Sainsbury Plc also were on the up gaining 2.3 percent (7 pence to 319.25)

On news that DSG International Plc, the U.K. consumer electronics retail giant are looking to raise “several hundred million pounds" by selling shares to existing investors, their shares rose by 9.4 percent (2.5 pence to 29)

Europe’s second-biggest discount airline EasyJet Plc announced that the former BT Group Plc Chairman Michael Rake would be joining them as deputy chairman. Initial reactions from the market was tepid as the company's shares fell by 0.9 percent (2.75 pence to 305)

On the news that ITN Plc the U.K.’s largest commercial broadcasting company is reportedly currently holding talks with institutional investors regarding either a rights offer or share placement. Shares in ITV rose 28.4 percent (6.25 pence to 28.25) on the strength of the unconfirmed report.

The benchmark FTSE 100 fell 36.13, or 0.9 percent, to 3,993.54, paring four On the day the FTSE 100 was unstable and fell by 0.9 percent (36.13 points to 3993.54) putting an end to the indicator's streak of several weeks of gains.

The FTSE 250 index rose by 1.49% or 93.35 points to 6351.92

The FTSE 100 has rebounded 14 percent in recent weeks from its 2009 lows largely due to the banks who have all reported a positive start to the year.

Analysts are now saying that the U.K. pound is liable to continue to strengthen against the euro. This comes on speculation the European Central Bank will purchase government assets as part of a quantitative easing policy, according to UBS AG.

Sterling fell slightly against the dollar and rose against the Euro while holding its own against the Japanese Yen and the Swiss Franc:

Pound/US dollar 1.4598
Pound/Euro 1.1018
Pound/Japanese Yen 127.58
Pound/Swiss Franc 1.6754

Wall Street shares took a step back after a few very good days of trading

The Dow Jones Average dropped 41.74. to close at 7975.85. The Nasdaq fell 15.6 points to 1606.71

Signs that the Obama administration are taking the current financial situation seriously comes with the news that US defence secretary Robert Gates, has , unveiled a sweeping overhaul of defence priorities on Monday, axing several high-profile weapons programmes in the process.

The series of cuts and changes, part of President Barack Obama’s $534bn defence budget cuts, also includes cancelling a deal to build a new presidential helicopter.