UK inflation rises above expectations

The Bank of England's target measure, CPI inflation, increased to 3.4 per cent, up from 3 per cent in February mainly due to surging fuel prices as the price of oil moved above $80 a barrel. This means it is now the fourth month that CPI inflation has remained above the Bank's 2% target. Core inflation, which takes out the impact of food and energy costs, also moved up from 2.9% to 3% and RPI (Retail Prices Index) inflation, which includes housing costs, also rose to 4.4 per cent in March from 3.7 per cent. The average cost of a litre of petrol is now 120.9p compared to 95.2p in the same period in 2009, according to the AA.

This may mean that the BOE may move to tighten interest rates from the rock bottom 0.5% level sooner than expected if the GDP numbers due Friday are also robust

Goldman Sachs and Coke deliver strong quarter

Goldman Sachs (GS) has just reported that its quarterly profit doubled compared with the same period a year earlier. Goldman's net income rose to $3.3 billion, $5.59 ashare, from $1.66 billion, or $3.39 a share in the same period in 2009. Estimates were for earnings per share of $4.16. Top line revenue rose 35% to $12.78 billion.

The earnings news has created significant controversy after the news that the SEC was investigating Goldman for potential fraud on a CDO product announced last week and the Financial Services authority (FSA) announcing their own enquiry today. Prime Minister Gordon Brown said he was shocked by the "moral bankruptcy" exposed by the SEC's suit.

Coca-Cola (KO) reported increased earnings of $1.61 billion, or 69 cents a share, from $1.35 billion, or 58 cents, earned in the year-ago period. Adjusted net income was 80 cents a share and revenue rose to $7.53 bn, up 5% versus a year ago as the company delivered volume and market share growth. Analysts estimated earnings of 74 cents a share and revenue of $7.66 billion.