UK Economics Correspondent, London
David's Feed
Jul 23, 2015

Economists say fundamentals strong despite British retail sales dip

LONDON, July 23 (Reuters) – British retail sales suffered an
unexpected dip last month, wrong-footing economists who said
rising wages and lower prices still pointed to strong prospects
for consumer spending, a mainstay of the country’s growth.

Sterling slid half a cent against the dollar after the
Office for National Statistics reported a 0.2 percent fall in
June retail sales on Thursday, prompting traders to reconsider
bets on a Bank of England rate rise before the end of the year.

Jul 22, 2015

Bank of England minutes show some rate-setters edging towards hike

LONDON, July 22 (Reuters) – A number of Bank of England
rate-setters are moving towards voting for the first increase in
borrowing costs in over eight years, adding to expectations of a
split among policymakers in August.

All nine members of the BoE’s Monetary Policy Committee
voted on July 8 to leave rates at a record low of 0.5 percent,
as they have done since January, minutes of the meeting showed
on Wednesday.

Jul 21, 2015

UK’s Osborne tightens screws on government spending plans

LONDON (Reuters) – Britain’s finance minister George Osborne launched a new front in his austerity push on Tuesday as he challenged some government departments to find spending cuts of up to 40 percent by the end of the decade.

Osborne said he would announce on Nov. 25 how he would find an extra 20 billion pounds ($31 billion) of annual departmental savings, on top of deep cuts to welfare spending that he unveiled earlier this month in a post-election budget.

Jul 14, 2015

Bank of England’s Carney says time for rate hike moving closer

LONDON, July 14 (Reuters) – Bank of England Governor Mark
Carney said on Tuesday that the time for a first British
interest rate hike since the financial crisis was getting closer
as economic recovery gathers momentum.

Speaking to British lawmakers for the first time since May’s
national election, Carney said households should start to
prepare for higher borrowing costs, though the central bank
would only raise rates slowly.

Jul 10, 2015

UK’s minimum wage boost will not bring riches for all

LONDON (Reuters) – Conservative politicians cheered and pumped their fists on Wednesday when Chancellor George Osborne announced a bumper increase in the minimum wage, but the economic gains from the change are likely to be much more muted.

The plan to raise the minimum wage by 40 percent by 2020 was the surprise of Osborne’s first budget since the Conservative Party won an unexpected outright victory at May’s election.

Jul 9, 2015

Analysis – UK’s minimum wage boost will not bring riches for all

LONDON (Reuters) – Britain’s Conservative politicians cheered and pumped their fists on Wednesday when finance minister George Osborne announced a bumper increase in the minimum wage, but the economic gains from the change are likely to be much more muted.

The plan to raise the minimum wage by 40 percent by 2020 was the surprise of Osborne’s first budget since the Conservative Party won an unexpected outright victory at May’s election.

Jul 9, 2015

Demand for UK debt could move from ‘feast to famine’ – DMO

LONDON (Reuters) – Strong demand at recent British government bond auctions has not ended the risk of investors temporarily losing their appetite for new debt, the man responsible for financing Britain’s budget deficit said on Wednesday.

The chief executive of the UK Debt Management Office, Robert Stheeman, told Reuters he stood by comments he made last month about the increased risk of a first failed bond auction since 2009, despite a surge in investor appetite at recent sales.

Jul 9, 2015

Osborne cuts welfare, boosts minimum pay in post-election budget

LONDON (Reuters) – Chancellor George Osborne said he would reshape the world’s fifth-largest economy by chopping welfare but also announced a new national minimum wage in a budget that reflects an unexpectedly decisive election victory.

In the first solely Conservative budget for nearly 20 years, Osborne, a leading contender to succeed Prime Minister David Cameron, pointed on Wednesday to the turmoil in Greece as he renewed his push to fix Britain’s public finances.

Jul 8, 2015

UK’s Osborne spells out new, post-election spending cuts

LONDON (Reuters) – British finance minister George Osborne, fresh from a decisive election victory, pledged to recast the country’s economy by chopping welfare spending, lowering the tax bill for workers and tackling low productivity that could undermine the recovery.

In the first solely Conservative budget for nearly 20 years, Osborne used the turmoil in Greece to argue that the world’s fifth-largest economy needed less spending and less borrowing.

Jul 3, 2015

Ten-year gilt yields dip below two percent before Greek referendum

LONDON (Reuters) – Ten-year British government bond prices GB10YT=RR rose to a two-week high on Friday as investors piled into safer assets before a referendum which threatens to put Greece on a collision path with its creditors.

Prime Minister Alexis Tsipras said on Friday that the vote would not determine whether Greece stayed in the euro zone, but other European Union politicians said a vote against austerity would leave few options.

    • About David

      "David keeps a close watch on the UK economy, the Bank of England and the British government debt market. Previously he worked in Frankfurt, covering the European Central Bank and euro zone economy, and in Brussels where he reported on everything from EU summits to Belgian supermarkets."
      Languages:
      English, French, German
    • More from David

    • Contact David

    • Follow David