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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.

The CBI, the British business organization, reduced its forecast for UK economic growth in the first quarter of 2011 to 0.2 percent from 0.3 percent; although it noted that the recovery is expected to be “maintained.”

GBP/USD held just above Friday's 3-month low early Monday in Europe amid fresh tensions in the Korean peninsula that fed the greenback with safe-haven demand while the sterling awaited a less important mortgage approvals data by the Bank of England, due later in the session.

British retail sales rose in November for a second consecutive month as consumer spending picked up ahead of a hike in value added tax (VAT) next year.

British citizens expect the inflation rate to continue to rise in 2011, according to a survey released by the Bank of England (BoE) on Thursday.

Employment rates remained mostly stable in the euro area during the third quarter, dropping only by 0.2 percent, while unemployment rate in the U.K. touched its highest since the beginning of the year.

Inflation continued to rise in the U.K. during November, remaining above Bank of England's (BoE) target for the ninth month, spurred by a hike in food and non-alcoholic drink prices, the Office for National Statistics reported on Tuesday.

UK households are struggling to pay off their debts despite low interest rates, said a survey on Monday.

U.K.'s producer prices index fell to 0.3 percent in November from 0.6 percent, mainly due to a rise in fuel and food prices, a report by the Office for National Statistics said.

Outside the US and UK - where today's no change decision from the Bank of England left interest rates near 33-year lows beneath inflation - emerging economies are also flirting with sub-zero real rates of interest, Japanese investment bank Nomura's London office notes.

The Bank of England (BoE) continued to maintain its base rate at 0.5 percent, as the economic recovery continues to remain uncertain and financial crisis continues to worsen in the eurozone.

U.K. Chancellor of the Exchequer George Osborne is defending the beleaguered Bank of England (BoE) governor Mervyn King, who has come under fire in recent weeks for allegedly having a lack of political neutrality.

UK factory orders continued to rise in December and the manufacturers expect the output growth to be robust in the next three months due to strengthening demand at home and abroad.

The euro currency might not survive the current sovereign debt crisis and may be in danger of collapse, according to Stephen Nickell, an economist at the independent Office of Budget Responsibility (OBR) member and former Bank of England member.

Among the many juicy tidbits revealed by the recently published Wikileaks documents were Bank of England chief’s Mervyn King’s concerns about Prime Minister David Cameron’s inexperience.

Manufacturing in the eurozone expanded in November at its fastest pace in four months, boosted by strong activity in France and Germany, while manufacturing production in the U.K. touched a 16-year high, according to a survey.

UK economy grew in the third quarter, boosted mainly by a strong increase in exports of goods and services.

UK factory orders rose more than expected in November, but the manufacturers expect the output growth to slow in the next three months.

Retail sales in the U.K. rose by 0.5 percent for the first time in three months during October, according to a report by the Office for National Statistics.

Inflation in the U.K. rose during October, mainly pushed by fuel and lubricant prices, a report by the U.K. Office for National Statistics.

Euro rose across the board and pulled off 1-1/2-month lows against the US dollar and British pound on Friday on news EU leaders reassured the holders of outstanding bonds that they would not be forced to take losses. The day's gains, however, did not prevent the single currency from heading for weekly losses versus the majors as investors are still worried that Ireland may default on its bonds.