Economics / Markets

Better-than-expected unemployment figures and a rosier growth forecast from the Bank of England raised hopes yesterday that Britain was beginning to claw its way towards economic recovery.

Inflation in the UK may rise ‘sharply' over the next few months but is likely to fall back again in the medium term, according to Bank of England governor Mervyn King.

European markets have climbed steadily this morning with the FTSE 100 up 1.2% and the FTSE Eurofirst 1.1% higher.

Unemployment in the UK continued to rise in the three months to September, although the 30,000 increase was the smallest since May 2008.

The next Pre-Budget Report will be published on Wednesday 9 December, the Chancellor has confirmed.

Britain more at risk of losing its top-tier credit rating than any other major economy, according to leading agency Fitch.

US equities finished higher in fairly quiet trading on Monday, with the S&P 500 closing up (+2.2%) for a sixth straight session.

Barclays profits for the first nine months of the year dropped by almost a fifth following a £6.2bn payout of bad debts charges.

The UK life insurance sector has received a negative outlook from Fitch Ratings, following ongoing declines in sales and pressure on earnings.

There is growing fear of inflation in the UK and US markets as shown by increasing demand for government securities offering protection from rising prices, reports the Financial Times.