Economics / Markets

The UK economy is heading in the right direction but there are a "number of years to go" before a full-blown recovery can be called, Bank of England (BoE) chief economist Spencer Dale has said.

The leading US equity markets hit fresh record highs on Monday, suggesting a ‘Santa rally' is well underway in the run up to Christmas.

M&G Global Basics fund manager Graham French is to leave the group, Investment Week, IFAonline.co.uk's sister title, reports.

FIVE THINGS

Neil Woodford has warned investors in his £1.3bn Edinburgh Investment trust that the recent period of strong performance is unlikely to continue if the Federal Reserve tapers bond purchases.

The Bank of England has sharply revised its unemployment forecasts but emphasised this does not mean it is guaranteed to hike rates once the 7% threshold is reached.

The Chancellor, George Osborne, has changed the date on which he will deliver his Autumn Statement to Parliament to 5 December.

Growth in the US will be 3% next year, predicts UBS chief investment officer Bill O'Neill, the best rate of expansion for the country since the 2008 financial crisis.

UK CPI inflation dropped to 2.2% in October, a larger-than-expected fall that sent sterling to a two-month low against the dollar.

The Bank of England is expected to raise its growth forecast for the UK to 3% following the strong recovery the country has seen.