London Report: Unemployment near threshold for UK rate hike

UNEMPLOYMENT figures due out this week look set to show further signs of the UK’s recovery, with November’s rate expected to have fallen.

Alan Clarke, of ScotiaBank said: “The highlight of the UK economic calendar is going to be the labour report, where we see a very good chance that the unemployment rate falls by a further 0.2 per cent to 7.2 per cent.

“Given the close proximity to the seven per cent threshold this could prompt the Bank of England to update its forward guidance programme.”

Barclays’ Blerina Uruci also forecast the December claimant count would decline by 33,900 while average earnings growth would edge higher.

In the corporate calendar, Allocate Software, City of London Investment Group and Conviviality Retail start the week with reports today, while Unilever, PZ Cussons, Cairn Energy, and Intermediate Capital Group will give figures tomorrow.

On Wednesday Findel, WH Smith, Land Securities Group and Sage Group are set to update the market.

Petra Diamonds, easyJet, Henry Boot and A.G Barr will release their latest news on Thursday and Chemring Group, Samsung Electronics and Workspace Group are due to report on Friday.