BANK OF ENGLAND

Physical delivery times for wholesale Silver Bars in London – heart of the world's physical bullion markets – have improved. But major dealers continue to offer three-day settlement or longer, compared with the more normal two-day terms.

Personal insolvencies in Britain reached an all-time high in 2010, with 135,089 bankruptcies recorded (up 0.7 percent from the prior year), although the trend has been declining since the second quarter of last year, according to The Insolvency Service.

Construction activity returned to growth in January, helped by better weather and a rise in new business, the monthly Markit/CIPS purchasing managers index showed on Wednesday.

Manufacturing activity grew in January at its fastest pace since records began in 1992, and factory costs also surged, in a further sign that price pressures are building in the economy, a survey showed.

The minutes of Bank of England's (BoE) Monetary Policy Committee meeting held on January 13 showed that policymaker Martin Weale joined Andrew Sentance in voting for a 25 basis points rate hike.

Economy in the U.K. grew slower in the fourth quarter though it was above economists' forecasts, according to the latest report by the U.K. Statistical Department.

UK retail sales slid 0.8 per cent in December as food, petrol and clothing sales remained under pressure and the adverse effects of the snow dented high street spending.

Banks must be allowed to fail in order for capitalism to succeed according to Paul Tucker, the deputy governor of The Bank of England (BoE).

Gilts and short sterling futures slid on Tuesday after data showed UK consumer price inflation rose faster than forecast in December, fuelling concerns the Bank of England may be forced to raise interest rates sooner than expected.

Investors remain preoccupied by the threat of further monetary tightening in China, writes Marc Ground at Standard Bank in London today. This is weighing on precious metal prices, encouraged further by a stronger Dollar off the back of lingering Eurozone debt concerns.

The Bank of England kept its key interest rate at a record low 0.5 percent as expected on Thursday, judging that longer-term downward pressure on prices will quell a looming spike in inflation.

Industrial production continues to remain below expectations in the U.K., hurt by weakness in the oil and gas extraction sector.

Talking to people in the Chinese market over the weekend, writes Jeff Toshima, Tokyo director of the World Gold Council, in today's Nikkei Money, I was amazed to discover the number of gold saving accounts at Industrial and Commercial Bank of China has grown above 1,000,000 within a year of ICBC launching the service.

The UK service sector reported a drop in output in December, its first fall since April 2009, showing that the economy's growth had declined as the last year drew to a close.

Gold and Silver Prices both fell as London traders returned to work from the New Year shutdown on Tuesday, dropping over 3 percent from yesterday's highs as world stock markets caught up with Wall Street's strong gains.

U.K. implemented the biggest budget cuts seen since the World War II in an attempt to reduce the massive budget deficit but the hidden costs of the drive could offset much of the savings from the austerity drive.

Majority of the retailers in the UK expect sales to worsen in 2011 amid growing concerns over weak consumer demand and inflationary pressures.

The Gold Price in Euros has risen more than 38% so far in 2010. The Gold Price in Swiss Francs has also hit record highs. It looks as if the SNB will have to revoke its decision to stop intervening, says Steven Barrow, chief currency strategist at Standard Bank in London today.

When the return on savings is less than the rate of inflation it doesn't matter that gold doesn't provide you with an income. Tightly supplied and indestructible, it offers a natural and obvious alternative to cash. Inflation expectations are rising as 2011 begins.

Unless the European Union (EU) formulates an effective response to the ongoing debt crisis in Europe, the continent faces a new wave of bank failures and a string of sovereign defaults, according to Willem Buiter, the chief economist at Citigroup.

UK economic growth in the third quarter was lower than previously estimated, raising concerns that growth will slow further next year.