UBS: UK will lose 'safe haven' status as US recovers

Swiss investment bank UBS has warned the UK will lose the "safe haven" status it has enjoyed this year as the US attracts more investors.

UBS forecast the US economy will expand faster than any other developed rival next year, offering a shelter from the eurozone debt crisis, the Telegraph reports. According to the UBS report, US GDP will expand by 2.3% in 2012, while the UK will manage growth of just 0.7%. UK gilts and sterling have been boosted this year as nervous investors sought protection from problems in Europe, and their appeal has been increased even further by the austerity measures set out by the Coalition government in last year's Emergency Budget. "While we believe that the only true safe-haven remains t...