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RANsquawk DAILY UK OPENING NEWS – 14/02/12
Moody's have put the UK on negative outlook, raising the prospect that the UK could lose its triple-A rating. (FT-More)
-Moody's have commented on the move saying that the main driver of the decision is the weaker macroeconomic environment and exposure to the Eurozone, which will challenge the government's efforts to place its debt burden on a downward trajectory over the coming years.
-Moody's have added that they could cut the UK rating if they conclude that debt metrics are unlikely to stabilise within 3-4 years.
-It is the first time the UK have been placed on negative credit outlook since the Eurozone crisis began. UK Chancellor Osborne has said the move has supported the government's current austerity measures adding that this is a "reality check for anyone that thinks Britain can duck confronting its debts". Osborne further commented that government fiscal consolidation was the only thing that stopped Moody's from downgrading the UK.
UK Prime Minister Cameron is considering proposals to reduce high earner's tax relief on pensions in order to help fund a plan to raise the country's income tax threshold to GBP 10,000. (FT-More)
UK RICS House Price Balance (Jan) M/M -16% vs. Exp. -17% (Prev. -16%) (Sources)
-British house prices continued to fall in the three months to January, but surveyors became much less downbeat about prices in the coming months.
-"Prices are still falling across most parts of the country, but expectations for future prices have become less pessimistic." According to a RICS housing spokesman. (RTRS)
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