Daily Market Report - 22/07/2015

UK government borrowing fell to £9.4bn in June, down £0.8bn from a year earlier, as income and corporation tax receipts rose to record levels.  Income tax receipts rose to £11.5bn, while corporation tax brought in £1.7bn, both record monthly highs.
It was lowest borrowing figure for June since 2008, However, analysts had been expecting it to drop further to £8.5bn.
In the financial year so far, borrowing has fallen by £6.1bn to £25.1bn. Public sector net debt at the end of June 2015 was £1.513 trillion, or 81.5% of annual UK economic output, up from 80.8% in May.

The government is aiming to eliminate the budget deficit by 2019 and to run a £10bn surplus in 2020 and in subsequent years.
Chancellor George Osborne announced £37bn of spending cuts during this parliament in the summer Budget. In November, the government's spending review will set out £20bn worth of departmental budget cuts over the next five years. Mr Osborne has already unveiled £12bn of welfare savings plus £5bn of tax avoidance measures - which together with the £20bn of departmental spending cuts make up the £37bn figure earmarked to get government finances back in the black.

The International Monetary Fund (IMF) has confirmed that Greece has cleared overdue debt repayments of €2.05bn (£1.4bn) and is no longer in arrears. The repayments, and another for €4.2bn to the European Central Bank (ECB) due on Monday, came after the EU made Greece a short-term loan of €7bn.

Key Announcements

09:30 – GBP: bank of England MPC official bank Rate Votes expected to be 9-0