Economics Correspondent
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Dec 27, 2013

Gilt yields at highest since 2011 as economic outlook improves

LONDON (Reuters) – British government bonds tumbled on Friday, pushing yields to their highest level since mid-2011 as a brighter economic outlook encouraged investors into dump fixed-income assets for equities.

Thin trading conditions amplified the move, lifting the 10-year yield to 3.083 percent, more than double the record low touched in 2012 and a full percentage point above where it started the year.

Dec 4, 2013

Britain’s service sector grows again, but rapid pace eases

* PMI reading still high at 60 vs 62.5 in Oct

* UK growth forecasts set to be lifted on Thursday

* Markit predicts growth accelerated in Q4

By Christina Fincher and Susan Fenton

LONDON, Dec 4 (Reuters – Growth in Britain’s service sector
slowed a little last month, a survey showed on Wednesday,
breaking a run of positive data surprises but still providing a
strong backdrop for the government’s budget update later this
week.

Financial data company Markit said its UK services
purchasing managers’ index eased to 60.0 in November from a
16-year high of 62.5 in October.

Dec 3, 2013

Britain to trim gilt sales as public finances improve – Reuters poll

LONDON (Reuters) – Britain’s improving public finances are likely to lead to a cut in bond sales this fiscal year but gilt issuance probably won’t fall anything like as fast as the country’s overall financing needs.

A Reuters poll, ahead of the government’s half-yearly budget update on December 5, showed most primary dealers expect Britain to reduce sales of short-dated Treasury bills more than it will ease off on selling longer-dated government bonds.

Nov 28, 2013

Sterling rises after BoE curbs mortgage support

LONDON (Reuters) – Sterling rose to a 14-month high against a trade-weighted basket of currencies and an 11-month peak against the dollar on Thursday after the Bank of England scaled back stimulus for the housing sector.

Analysts said the decision was further confirmation of the BoE’s confidence in the economic outlook.

Nov 21, 2013

Britain on track to beat budget forecasts as growth rebounds

LONDON (Reuters) – Britain’s budget deficit narrowed further in October and its manufacturing orders were the strongest in nearly 20 years, setting the scene for a much rosier government outlook next month.

After several years of stop-go growth, finance minister George Osborne is likely to use a half-yearly budget update on on December 5 to vindicate his austerity programme that has brought down Britain’s giant budget deficit.

Nov 21, 2013

BoE stresses it’s in no rush to raise interest rates

LONDON (Reuters) – Bank of England policymakers will be in no hurry to raise interest rates even as the economy gathers steam, minutes of their latest policy meeting showed on Wednesday.

Sterling briefly fell against the dollar and British government bond prices pared losses as the BoE underscored its message that an eventual fall in unemployment to 7 percent would not lead to an automatic tightening of monetary policy.

Nov 20, 2013

Bank of England stresses it in no rush to raise interest rates

LONDON (Reuters) – Bank of England policymakers will be in no hurry to raise interest rates even as the economy gathers steam, minutes of their latest policy meeting showed on Wednesday.

Sterling briefly fell against the dollar and British government bond prices pared losses as the BoE underscored its message that an eventual fall in unemployment to 7 percent would not lead to an automatic tightening of monetary policy.

Nov 11, 2013

Better outlook poses challenge for Bank of England’s rates message

LONDON, Nov 11 (Reuters) – The Bank of England faces the
tricky task this week of upgrading its economic and employment
forecasts without stoking speculation in markets that interest
rates will rise any time soon.

The BoE took a new approach to coaxing Britain’s economy
back to health in August when it when it made a fall in
unemployment central to its thinking about when to raise
interest rates from their record lows.

Nov 7, 2013

Bank of England sits tight on policy as recovery builds

LONDON (Reuters) – The Bank of England left interest rates at record lows on Thursday but is likely to suggest next week that borrowing costs could rise sooner than it had forecast as the economic recovery gathers pace.

Britain is now in a very different position from the euro zone, where weak growth and a slump in inflation prompted the European Central Bank to cut its refinancing rate to a new record low of 0.25 percent.

Nov 6, 2013

UK industrial output rebounds in September

LONDON (Reuters) – British industrial output grew more strongly than expected in September as it bounced back from a fall the previous month, providing some reassurance that the country’s economic recovery is not being driven only by consumption.

Output in the industrial sector – which makes up about a sixth of Britain’s economy – climbed 0.9 percent during the month and was pushed up most strongly by manufacturing, the Office for National Statistics said.

    • About Christina

      "Christina Fincher is an economics correspondent based in London. She joined Reuters 12 years ago and has spent much of that time covering financial markets -- foreign exchange, fixed income and credit. Prior to that she worked as a translator for FT Information, where she worked with both French and Italian."
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