UK Economics Correspondent, London
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Jun 22, 2015

U.S. and EU face ‘heavy lift’ to get trade deal: EU ambassador

LONDON (Reuters) – The United States and the European Union face a major challenge to achieve a free trade deal before President Barack Obama’s term of office ends in January 2017, the EU’s ambassador to the United States said on Monday.

Doubts have been growing among EU officials about whether a trade deal can be achieved given the United States’ current focus on a trade deal with Pacific nations and deep splits within the European Parliament in Brussels.

Jun 20, 2015

Osborne vows hefty welfare cuts in July budget plan

LONDON (Reuters) – Chancellor George Osborne has said he will press ahead with hefty cuts to welfare in a budget statement next month, a day after tens of thousands of people marched against austerity in central London.

Writing in the Sunday Times, Osborne and welfare minister Iain Duncan Smith said the newly re-elected Conservative government would go ahead with plans to cut welfare spending by 12 billion pounds, out of an annual budget of 220 billion pounds, including old-age pensions.

Jun 20, 2015

UK finance minister vows hefty welfare cuts in July budget plan

LONDON, June 21 (Reuters) – British finance minister George
Osborne has said he will press ahead with hefty cuts to welfare
in a budget statement next month, a day after tens of thousands
of people marched against austerity in central London.

Writing in the Sunday Times, Osborne and welfare minister
Iain Duncan Smith said the newly re-elected Conservative
government would go ahead with plans to cut welfare spending by
12 billion pounds ($19 billion), out of an annual budget of 220
billion pounds, including old-age pensions.

Jun 20, 2015

Protesters throng London to oppose new UK government’s austerity plan

LONDON, June 20 (Reuters) – Tens of thousands of
anti-austerity protesters massed outside Britain’s parliament on
Saturday to demonstrate against the newly re-elected
Conservative government’s plans for further public spending
cuts.

Holding banners saying “End Austerity Now” and “Defy Tory
Rule”, protesters had marched from the Bank of England in the
heart of London’s financial district, in a rally which
organisers said drew several hundred thousand people.

Jun 20, 2015

Thousands march in London against new UK government’s austerity plan

LONDON (Reuters) – Thousands of protesters marched through central London on Saturday to demonstrate against the newly re-elected Conservative government’s plans for public spending cuts.

Holding banners saying “End Austerity Now” and “Defy Tory Rule”, protesters packed streets outside the Bank of England in the heart of London’s financial district to listen to speeches before marching towards parliament.

Jun 19, 2015

Strong income tax growth pushes UK borrowing to 8-year low

LONDON (Reuters) – Strong income tax receipts pushed British government borrowing to its lowest May reading since 2007, adding to signs that revenue growth could play a major role in debt-reduction plans being drafted by finance minister George Osborne.

The budget deficit fell to 10.1 billion pounds ($16.05 billion) from 12.4 billion pounds a year earlier, a smaller gap than economists had forecast.

Jun 18, 2015

UK pay growth hits higher gear, puts rate hike back in focus

LONDON (Reuters) – British workers’ pay grew at its fastest rate in nearly four years in the three months to April and a Bank of England policymaker said the data underscored how interest rates are on course to rise.

Britain’s long-awaited recovery in living standards seemed to be gathering momentum as a key measure of earnings rose more quickly than expected, data showed on Wednesday.

Jun 17, 2015

Bank of England’s Forbes expects inflation to rebound next year

LONDON (Reuters) – British inflation is likely to rise quickly early next year from its current historically low levels, leaving the country at very little risk of persistent deflation, Bank of England policymaker Kristin Forbes said on Wednesday.

Forbes’s comments are in line with forecasts for inflation made by the BoE last month, which predict inflation will rise from around zero to near its 2 percent target by late next year.

Jun 17, 2015

Pay growth revives hopes that UK casting off crisis hangover

LONDON (Reuters) – British workers’ pay grew at its fastest rate in nearly four years in the three months to April, putting the prospect of the Bank of England finally raising interest rates firmly back on the agenda for investors.

A long-awaited recovery in living standards seemed to be gathering momentum as a key measure of earnings rose more quickly than expected, official data showed on Wednesday.

Jun 17, 2015

UK bond market brings forward BoE rate hike bets after bumper wage data

LONDON (Reuters) – Short-dated British government bonds led a slide in gilt prices on Wednesday after data showed British wages grew at their fastest rate in nearly four years, boosting the chance of an early rate move by the Bank of England.

Strategists also said that BoE minutes released on Wednesday had a slightly more hawkish tilt than before, with less of a range of views on the likely path for interest raters.

    • 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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