Bank of England paves way for Britain to cut interest rates before the US: Nothing to stop us going first, says governor Bailey
Cameron left red-faced again in Greensill fiasco: Shamed tycoon sues Government over alleged leak
Bailey pulls his punches on rates yet again, but the Bank needs to deliver on lowering borrowing costs soon: ALEX BRUMMER
Our mortgage valuation says the house we're buying is worth £40,000 less: What should we do and can we appeal?
Bank of England holds interest rates at 5.25% for sixth time in a row - what it means for YOUR mortgages and savings
Scottish Power says our energy meters are now too old - is this a ruse to force us to get a smart meter?
No saving this popular family car: Ford confirms it will cull another of its best-selling petrol models next year to focus on EVs despite demand slump
Are you a Wetherspoon lover or hater? LEE BOYCE and SIMON LAMBERT have very different opinions on the pub giant that's flying high...
MARKET REPORT: North Sea giant Harbour Energy closes in on £9bn deal to take over German rival's oil and gas assets
Takeover target Wood Group hit by slump in revenues as bidders circle the oil industry engineer
Vodafone told to set up a security committee to 'oversee sensitive work' as £15bn Three deal is given the green light
ITV hopes for summer advertising boom as it continues to reel from last year's Hollywood strikes
Spanish bank BBVA goes directly to shareholders as it steps up bid for TSB owner Sabadell
Watches of Switzerland buys Italy's Roberto Coin for £104m in bid to expand in the lucrative luxury jewellery market
CRANE ON THE CASE: Air Mauritius lost my luggage and ruined my holiday but its compensation offer is terrible - what can I do?
I want to invest £600 a year for my new baby, what is the best way to do it - and how much could it grow to?
Artificial grass can lead to increased flooding risk, major insurer warns - so should you ever get a plastic lawn?
Get 5.6% interest with this quirky 365-day notice savings account that beats the top one-year fixed rates
Spring property bounce is a damp squib: Estate agents says rising mortgage rates keep buyers at bay
Zoning out: Why London renters are swapping Clapham and Camden for Abbey Wood and Forest Gate
JLR offers £150 a month towards the cost of insuring new Range Rover models to encourage sales after theft concerns
Ford boss says it may restrict petrol models in the UK to hit EV sales targets and avoid crippling fines
Used car sales hit a five-year high as fresh supply of second-hand motors enter the market and prices drop
Scottish Widows gave me access to a stranger's £40,000 pension - so could they get at my six-figure pot?

FTSE preview: Shares up ahead of GDP data

By Reuters
Updated: 03:12 EDT, 25 January 2011

View
comments

The FTSE 100 is expected to rise again on Tuesday as confidence on US corporate earnings returned and with key UK growth data awaited.

Dealers monitor their screens on the trading floor of IG Index in London

Market watcher: GDP data will set the agenda today.

Britain's blue chip index is seen rising around 0.4% after it added 0.8% on Monday to close at 5,943.85 points.

Investors will watch British growth data for the fourth quarter for more clues on the economic outlook and the prospects for interest rate rises, with rates currently at a record low of 0.5%.

Economic growth is likely to have slowed in the final three months of last year with growth for the quarter forecast at 0.5%, down from 0.7% for the third quarter.

The harshest winter in a century is likely to have made a huge dent to construction output - a key driver of growth in the preceding two quarters - and service sector activity is also likely to have taken a hit.

A weak figure will reinforce concerns about whether the economic recovery will be sustained in 2011 when the government accelerates a programme of deep public spending cuts.

The Bank of England's Monetary Policy Committee now needs to focus on its main inflation objective, and not worry too much about trying to forecast growth, BoE policymaker Andrew Sentance said on Monday.

In the United States on Monday, the Dow Jones industrial average ended 0.9% higher, bolstered by a share buyback from computer firm Intel, while Japan's Nikkei 225 gained 1.2% on Tuesday.

Stuart Gulliver, HSBC's new chief executive, has dropped plans to relocate to Hong Kong and will stay in London, the Financial Times said on Tuesday.

Philips' Chief Executive Gerard Kleisterlee is seen as the favourite to become the next chairman of Vodafone, the Financial Times said on Monday.

BG Group is to invest $10bn in Brazil over the next decade as it seeks to accelerate the development of the country's deepwater oil fields, the Daily Telegraph reported.

GlaxoSmithKline said a Triad group recall had been initiated due to concerns of potential microbial contamination of alcohol products but said the recall did not affect actual Arixtra.

Premier Foods is in advanced talks to sell its canning operations to Princes, part of Japan's Mitsubishi Corporation, the Financial Times said on Tuesday.

There will be updates today from Misys, PZ Cussons, Intermediate Capital Group and Games Workshop.

Reader service: Free brochure guides

Completely free insider guides on the latest investing trends...

Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.