UK Economics Correspondent, London
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Aug 6, 2014

UK house prices surge again, but industrial data disappoint

LONDON, Aug 6 (Reuters) – Consumers continued to power
Britain’s economy last month as house prices surged and car
sales boomed, although weak industrial output in June was a
reminder that a balanced recovery still looks a way off.

House prices recorded their biggest annual rise last month
since the start of the financial crisis, figures from mortgage
lender Halifax showed on Wednesday, casting doubt on other signs
that the housing market may be slowing.

Aug 5, 2014

Surprise jump in UK services PMI heralds continued strong growth

LONDON, Aug 5 (Reuters) – Britain’s services industry grew
last month at the fastest pace since November, raising the
chance that the rapid economic recovery will continue for the
rest of the year and potentially bringing forward a rise in
interest rates.

The monthly Markit/CIPS purchasing managers index for the
services sector beat economists’ expectations and contrasted
with a mostly downbeat recent string of economic data.

Aug 5, 2014

UK services PMI rises to eight-month high – Markit/CIPS

By David Milliken

LONDON,(Reuters) – Activity in Britain’s services industry increased last month at the fastest rate since November, helping overall private-sector activity to its briskest growth in three months, a survey showed on Tuesday.

The figures are likely to revive speculation over whether the Bank of England will raise interest rates before the end of the year, and contrast with other data pointing to a slight slowdown in British growth in the second half of the year.

Aug 4, 2014

Former Bank of England chief economist Dale quits to join BP

LONDON, Aug 4 (Reuters) – Former Bank of England chief
economist Spencer Dale is leaving the central bank, just two
months after being moved to a new role, to become chief
economist at oil major BP, the BoE said on Monday.

Dale spent six years as the central bank’s chief economist,
where he was responsible for economic forecasts and took a
relatively hawkish line on monetary policy.

Jul 23, 2014

Bank of England eyes wage puzzle as it mulls when to raise rates

LONDON (Reuters) – Bank of England officials discussed in July whether there was a case for an early rate rise to cool Britain’s economy, but were held back in part by strikingly low wage growth and signs of weakness abroad.

The nine members of the Monetary Policy Committee were unanimous when they voted to keep interest rates on hold at their July 9-10 meeting, as forecast by a Reuters poll.

Jul 22, 2014

UK June public finances show government slipping off target

LONDON (Reuters) – Britain’s public finances showed a bigger than expected deficit in June, continuing a weak start to the tax year and leaving Chancellor George Osborne with a lot of catching up to do to meet his fiscal goals.

The government failed to reduce public borrowing during the first three months of the 2014/15 fiscal year, possibly limiting its ability to offer any tax cuts or other voter-friendly surprises ahead of a national election in May next year.

Jul 21, 2014

UK ultra-long gilts sag after government pension reform

LONDON (Reuters) – Prices of ultra-long British government bonds fell slightly on Monday after the government said more workers than originally planned would be able to cash in pension savings early, potentially reducing demand for long-dated debt.

Britain’s finance ministry said members of some ‘defined-benefit’ pension schemes – who receive a percentage of salary on retirement – would be able to withdraw money from the age of 55, subject to getting independent financial advice.

Jul 21, 2014

Osborne overhauls employee pension schemes, offers more flexibility

LONDON (Reuters) – Chancellor George Osborne published new rules for private pensions on Monday which give retirees greater freedom to spend their savings as they like, fleshing out reforms announced earlier this year that shook the share value of British insurers.

Osborne caught Britain’s pensions industry by surprise in March when he scrapped a rule forcing people to buy an annuity, a financial product which converts a retiree’s pension pot into a guaranteed retirement income.

Jul 21, 2014

UK overhauls employee pension schemes, offers more flexibility

LONDON, July 21 (Reuters) – Britain published new rules for
private pensions on Monday which give retirees greater freedom
to spend their savings as they like, fleshing out reforms
announced earlier this year that shook the share value of
British insurers.

Finance minister George Osborne caught Britain’s pensions
industry by surprise in March when he scrapped a rule forcing
people to buy an annuity, a financial product which converts a
retiree’s pension pot into a guaranteed retirement income.

Jul 17, 2014

Bank of England says some investment funds less liquid than they look

LONDON, July 17 (Reuters) – Investment funds focused on
emerging economies or high-yield debt may be unable to return
investors’ money promptly if turmoil hits markets, the Bank of
England’s financial stability chief warned on Thursday.

Many investment funds promise to redeem investors’ shares
within a day or two. But BoE Deputy Governor Jon Cunliffe said
this may not be realistic when trouble strikes less liquid
markets and droves of investors want to cut their losses.

    • 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
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