Big names see strength in recovery

THE green shoots of recovery spotted in London's economy in the autumn are starting to blossom, according to a panel of influential business leaders.

That will reinforce expectations of further interest rate rises in coming months although the Bank of England monetary policy committee, under Governor Mervyn King, is expected to keep the cost of borrowing at 4% at its meeting today.

The 16 heavy-hitters, who include Sir Stuart Hampson, chairman of department stores group John Lewis, Sir Win Bischoff, chairman of Citigroup Europe, and Sir William Castell, chief executive of medical technology firm Amersham, said the City was enjoying rising profits, the IT sector was picking up and London's commercial property sector was improving.

The verdict, in a report for lobbyists London First, is much more upbeat than its last one four months ago, which said the capital's economy was unlikely to boom in the foreseeable future.

'In the City, bonuses are up - although not yet to levels of 2001 - and companies are recruiting again,' the panel said.

'London is benefiting from the weak dollar, particularly as US-headquartered companies' results are looking very good.

'Financial and business services are once more investing in information and technology, a good indication of increasing business confidence.'