Morning papers: UK to breach pre-crisis GDP peak in 2014

The UK downturn is finally expected to be left behind next year as the size of the economy surpasses its pre-recession peak, according to a new forecast upgrading prospects for growth, reports The Daily Telegraph.

The prediction from the British Chambers of Commerce brings forward the likely date to the third quarter of 2014. It would mark the first time that UK gross domestic product has climbed back to the peak it reached in the first quarter of 2008.

BoE’s Weale says forward guidance may give small growth boost

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The Bank of England’s forward guidance policy will give only a small boost to economic output, and one which depends on how well the public understand it, BoE policymaker Martin Weale said on Wednesday, reports Reuters.

Britain’s central bank said in August that it would not raise interest rates from their record low 0.5 percent before unemployment falls to 7 percent, as long as inflation did not show signs of getting out of hand.

Confidence grows of support for US budget deal

US Congress appeared on track to approve a bipartisan budget deal designed to provide stability to America’s fiscal policy for the next two years and spur its economic recovery, reports the Financial Times.

The high-stakes agreement sealed on Tuesday night by Patty Murray and Paul Ryan, the Democratic and Republican budget negotiators, will be taken up by the House of Representatives as soon as Thursday, to be followed by the Senate.

Lloyds and RBS face £90m in fines

Lloyds Banking Group and Royal Bank of Scotland were hit with a combined £90m of fines from regulators in the UK and US on Wednesday as another round of past misdeeds came back to haunt Britain’s state-backed banks, reports the Financial Times.

Royal Bank of Scotland agreed to pay the US authorities $100m (£62m) to settle accusations it breached US sanctions through dealings with clients in Iran, Sudan, Burma and Cuba.

House price rises realise bubble fears, says economist

The average UK home has seen its value rise by £10,329 over the past year, or by £28.30 a day, according to figures from property search engine Zoopla, reports the Guardian.

This follows research from a leading economics professor that around three-quarters of properties in the UK are overvalued, with a 93 per cent probability that London is already in the grip of a house price “bubble”.

ECB poised to get tough on sovereign bond risks

A top official at the European Central Bank has signalled it will try to force eurozone banks to hold capital against sovereign bonds, in an attempt to stop weak lenders using its cash to hoover up the debts of crisis-hit countries, reports the Financial Times.

Jamie Dimon says JPMorgan ready to settle Madoff claims

Jamie Dimon, chief executive of JPMorgan Chase, signalled the bank planned to pay penalties over allegations that it failed to notify US authorities that it was worried Bernard Madoff was running a Ponzi scheme, reports the Financial Times.