Long, hard slog to recovery - papers

BRITAIN’S economy will finally make it out of recession in the last quarter of 2009, but will perform much less strongly in each of the next three years than the Government is currently forecasting, the CBI will say today.

The UK's biggest business group is expecting a weak economic recovery during 2010, reports The Independent, followed by two subsequent years of disappointing growth, with only moderate improvements in employment and wage settlements. Read more

BRITIAIN is at risk of a mass sell-off of distressed properties that would send values into a double dip and impair the lending ability of banks, reports The Telegraph.

The dire warning is contained in the Bank of England's latest Financial Stability Report, which was published last week.

In the report, the Bank revealed its concerns about potential writedowns on £200bn of loans made to commercial property by major UK banks. It warned of an increasing number of loan defaults given the 44% fall in the value of shops, offices and warehouses since 2007. Read more

SHADOW CHANCELLOR GEORGE OSBORNE  says the failure of the Pre-Budget Report to tackle Britain's debt could lead to soaring interest rates, reports The Guardian.
Britain is at risk of following Greece with rising interest rates and soaring debt repayments, Osborne warned today.

Osborne said the Pre-Budget Report this month was "playing with economic fire" by failing to produce a credible plan to tackle the national debt.

He warned that investors were already demanding higher interest rates on the national debt. Read more

OIL PRICES will remain trapped in the $70-$80 a barrel range in the first half of 2010 as demand recovers more slowly than expected, according to the world's top oil trading houses.

The view of traders such as Vitol, Glencore, Trafigura, Gunvor and Mercuria will be scrutinised by the Organisation of the Petroleum Exporting Countries (OPEC), the oil cartel, reports the Financial Times. OPEC meets tomorrow in Luanda, Angola, to discuss its production policy during the northern hemisphere's winter. Read more 

Sales of dollar junk bonds have hit all-time high levels in 2009, as issuers rush to tap strong global investor demand after a year in which the asset class has produced record returns, writes the Financial Times.

The Financial Times also reports total issuance so far this year of high-yield bonds, commonly known as junk, last week topped $144bn (£89bn), passing the previous high of $143bn reached in 2006, according to Dealogic. This marks a big reversal from last year, when investors shunned this corner of the credit markets. Read more