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B B C : 450 Jobs May Go As Armstrong Call Receivers

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http://news.bbc.co.uk/1/hi/england/west_midlands/4805612.stm

Tuesday, 14 March 2006, 13:39 GMT

Jobs threat after pension failure

A manufacturing firm employing 450 people has called in receivers after failing to reach a settlement over its pension fund deficit.
The Armstrong Group said it inherited a debt of £36m and for the last two years has been in negotiations with the trustee of its pension fund.
The firm said it was unable to pay the amount but had tried to avoid insolvency and protect jobs.
The group has factories in the Black Country and Hull.

Another tragedy. :(

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Another tragedy. :(

A tragedy for those directly involved, but will it have a huge impact on the UK as a whole?

Traditional manufacturing has long been on a downward trajectory. Meanwhile, the service sector has prospered (including the export of services).

I really don't think it matters that much that we have stopped metal bashing. High-value manufacturing in the UK is still ticking along.

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Any company failure due to pensions deficits makes me wonder whether we've thought this pensions scenario biz thru. It is the collapse in annuity rates that is causing most of the problem (the stock market has recovered admirably). Companies are required and increasingly feel inclined to buy gilts to match their pensions liabilities. This only causes further falls in annuity rates (which are related to gilt yields), prompting further pension deficits, causing more buying of gilts etc etc - basically a legislation induced bubble in gilts. That is what is causing the inversion in the yield curve. Crazy.

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Think that the receivers will find a buyer for the company - this is just a a get-out for the parent compnay Caparo to avoid the pension liabilities the Armstong Group have

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Any company failure due to pensions deficits makes me wonder whether we've thought this pensions scenario biz thru. It is the collapse in annuity rates that is causing most of the problem (the stock market has recovered admirably). Companies are required and increasingly feel inclined to buy gilts to match their pensions liabilities. This only causes further falls in annuity rates (which are related to gilt yields), prompting further pension deficits, causing more buying of gilts etc etc - basically a legislation induced bubble in gilts. That is what is causing the inversion in the yield curve. Crazy.

But I guess by buying Gilts you get to fund Blair and Browns spending spree.

<_<

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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