Trio of surveys point to strengthening economy

LONDON | Tue Jul 9, 2013 1:14am BST
(Reuters) - Optimism about Britain's recovery outlook grew on Tuesday as a trio of surveys flagged rising house prices, improved business confidence and steady growth in retail sales.

The Royal Institution of Chartered Surveyors' house price balance jumped to +21 in June from +5 in May - the best reading since January 2010 and the biggest improvement in a single month since 2009.

A survey from Deloitte showed Britain's top firms are more willing to expand than at any point over the past two years, while the British Retail Consortium reported healthy growth in sales last month.

The Bank of England indicated last week it wanted monetary conditions to remain stimulative, mindful that higher bond yields could still snuff out Britain's burgeoning recovery. But it does appear Mark Carney has taken the helm of the central bank just as the economy is picking up.

"It is particularly encouraging to see the move towards growth among UK-facing companies," said Deloitte's chief economist Ian Stewart. "These companies have been consistently more defensive than their international-facing peers in the last two years."

The Deloitte survey showed that expectations for hiring and investment were at a two-year high, with a quarter of the chief financial officers polled saying they had shifted their focus from cutting costs to expansion.

Willingness to accept risks on investments was registered at its highest level since the poll began in 2007.

Nikkei climbs 2.6 pct, large caps lead gains amid global rebound

Tue Jul 9, 2013 7:17am BST
TOKYO, July 9 (Reuters) - Japan's Nikkei share average
rebounded on Tuesday to hit a 6-1/2-week closing high, with
large-cap stocks leading the gains, as the dollar strengthened
back above 101 yen and on gains in U.S. and European equities.

The benchmark Nikkei rose 2.6 percent to 14,472.90,
its highest closing since May 24, while the broader Topix
gained 2.1 percent to 1,196.89, with 32 of its 33
sub-sectors in positive territory.

The Nikkei has risen more than 39 percent this year,
underpinned by the Japanese government's sweeping stimulus
policies.

Asian shares gain, dollar near three-year high on U.S. jobs afterglow

TOKYO | Tue Jul 9, 2013 7:18am BST
(Reuters) - Asian shares gained on Tuesday, taking heart from a rally on Wall Street spurred by strong U.S. job data last week, while the U.S. dollar held near a three-year high against a basket of currencies.

But Chinese shares underperformed on concerns over Beijing's credit reform drive to rebalance the economy and as unexpectedly high inflation data shut out any near-term possibility of monetary support for economic growth.

European shares were expected to open higher, however, with and Germany's DAX and Britain's FTSE 100 seen trading up around 0.4 percent.

FTSE100 firmly higher in early deals as the miners improve

GBP Manufacturing Production m/m -0.8% 0.3% -0.2%

GBP Trade Balance -8.5B -8.4B -8.4B

GBP Industrial Production m/m 0.0% 0.3% -0.1%

FTSE100 firmly higher at midday with RBS the leader

GBP NIESR GDP Estimate 0.6% 0.6%

USD JOLTS Job Openings 3.83M 3.81M 3.76M

IMF cuts global growth forecast as emerging markets slow

WASHINGTON | Tue Jul 9, 2013 3:13pm BST
(Reuters) - The International Monetary Fund trimmed its global growth forecast on Tuesday for the fifth time since early last year due to a slowdown in emerging economies and the woes in recession-struck Europe.

In its mid-year health check of the world economy, the Fund also warned global growth could slow further if the pull-back from massive monetary stimulus in the United States triggers reversals in capital flows and crimps growth in developing countries.

IMF raises UK economic growth forecast

The International Monetary Fund (IMF) has lifted its economic growth forecast for the UK this year from 0.7% to 0.9%.

Not since April 2012 has the IMF raised its UK forecast. A Treasury spokesman said it showed that the economy was moving from "rescue to recovery".

In April this year, the Fund cut its forecast to 0.7% from 1%, sparking wide debate about whether Chancellor George Osborne should alter his policies.

FTSE100 ends with strong gains as the miners advance