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.
LONDON, July 3 (Reuters) – British savers will have less of
their money protected if a bank fails next year, the government
said on Friday, blaming European Union rules which one senior
lawmaker called “absurd”.
Relations between Britain and the EU are already tense.
Prime Minister David Cameron, who is trying to reshape relations
with the 27-member bloc before calling a referendum by the end
of 2017 on whether to stay in, wants to ensure that Britain is
not disadvantaged by not using the euro.
LONDON (Reuters) – Prime Minister David Cameron’s Conservatives have their best chance in almost two decades to remould Britain’s economy next week, in their first budget statement after an unexpectedly decisive election victory.
Freed from needing the support of their former coalition partners, the Liberal Democrats, Conservatives want to reduce borrowing faster this year and set out plans to cut the annual welfare bill by 12 billion pounds ($18.7 billion).
LONDON, July 1 (Reuters) – The Bank of England’s risk
watchdog will extend its focus beyond making banks more stable
to look at the lack of liquidity in fixed-income markets, which
are now braced for more volatility as bonds price in eventual
interest rate rises.
The Bank’s Financial Policy Committee (FPC) said in its
twice-yearly report on Wednesday that some markets had become
less liquid to cope with heavy sell-offs, but the reasons for
this were “not yet well understood”.
LONDON, July 1 (Reuters) – The Bank of England said on
Wednesday it stood ready to take any action required in response
to Greece’s worsening debt crisis, which could trigger wider
problems on financial markets.
Greece on Tuesday became the first advanced economy to
default on an International Monetary Fund loan after the
government in Athens broke off talks with its creditors and shut
LONDON (Reuters) – Britain’s economy enjoyed a stronger start to the year than previously thought, buoyed by big-spending consumers and an upturn in business investment, but weak exports continued to act as a drag on growth.
New official data on Tuesday showed that over the past year, British households have seen a bigger boost to disposable income than at any time since 2001, as wages started to pick up and inflation fell toward its lowest in more than 50 years.
LONDON (Reuters) – British government bonds enjoyed their biggest one-day gains in months on Monday, bouncing off the previous week’s lows after investors were caught out by an unexpected deepening in Greece’s debt crisis over the weekend.
Two-year gilt prices recorded their biggest rise in eight months, while benchmark 10-year British government bonds rebounded from a seven-month low, pushing yields 12 basis points lower on the day to 2.07 percent.
LONDON (Reuters) – The Bank of England should steer clear of an early interest rate hike, and is as likely to cut rates as to raise them in future, its chief economist has said.
Andy Haldane said recent strong wage data had not changed his view from earlier in the year about the dangers of tightening policy too soon, adding that a drag on growth from sterling strength could outweigh the gains from higher wages.
LONDON (Reuters) – Prime Minister David Cameron’s plan to change the European Union’s treaties would take a long time but he could achieve “substantial” reforms to Britain’s relationship without it, Germany’s Europe minister said on Thursday.
Cameron has promised to renegotiate Britain’s relationship with the bloc ahead of a membership referendum by the end of 2017 and has said he believes treaty change will be needed to achieve some of his planned reforms.
LONDON (Reuters) – Britain is at increased risk of failing to find enough buyers at a government bond auction due to big day-to-day swings in market prices, the man responsible for selling the country’s debt said on Wednesday.
Robert Stheeman, chief executive of the UK Debt Management Office, told Reuters’ online Global Markets Forum that underlying demand for gilts remained strong. But the chances of a significant mismatch between buyers and sellers on a given day had risen as low liquidity was now a genuine problem.