City economists believe on balance that the MPC will not start reducing rates until later this year

City economists believe, on balance, that the MPC will not start reducing rates until later this year, although most accept there is a chance of a first move this week. There has been plenty of recent evidence that the British economy is still in healthy shape.Although one house-price index published last week showed a sharp fall in December, other housing market indicators for the tail end of last year were strong. A report published today, from the Centre for Economics and Business Research, predicts house price inflation could even head back into double digits later this year when interest rates are widely expected to have started to fall. Recent business surveys have been upbeat, and high-street sales appear to have been reasonable over Christmas.Expert opinion is divided about the economic outlook. While a US slowdown will certainly have an effect, planned increases in government spending and interest-rate reductions later in the year would cushion the blow.However, Fitch, the credit ratings agency, says in its report on the UK that corporate sector indebtedness has returned to a level last seen on the eve of the last recession.

"Firms' increased vulnerability to weaker cash flows could amplify the impact of any economic slowdown," the report warns.Much of the corporate debt is short-term borrowing overseas, leaving the UK vulnerable to a sharp deterioration in the balance of payments, and a sterling crisis, in any downturn.. Mobile phone giant Orange today confirmed that it would float on the Paris and London stock exchanges later this month. Mobile phone giant Orange today confirmed that it would float on the Paris and London stock exchanges later this month. The firm, which was listed in London before it was bought by France Telecom last year, will spin off 15 per cent of its business.It has been estimated the flotation will value Orange at around 70 billion euros (£50 billion).The funds raised by the flotation will be used by France Telecom to refinance its acquisition of Orange from Vodafone, which it completed last August.An advertising campaign promoting the flotation will start today, with the hope of sparking interest among the general public in the sale.Michel Bon, chairman of France Telecom, said: "The creation of the enlarged Orange and its planned listing as an autonomous quoted public company are two of the most significant moves France Telecom has made."By combining almost all of our mobile interests with Orange, we have created a European leader and one we believe has the potential to become a world leader."Orange now has operating interests in some 19 countries in Europe and beyond, covering approximately 480 million people.* BT Cellnet today said it had signed up 1.5 million customers for its mobile services in the last three months, bringing its UK customer base to 10.2 million.The figures follow Vodafone's statement last week that it had added more than 1.4 million customers in the same period, bringing its customer base to 13.8 million.And figures from Orange showed it had signed up 1.56 million new UK customers, giving it 9.83 million customers overall.Figures from UK player One2One are due out later today.. Interbrew, the Belgian company, which is still reeling from last week's decision by the UK Government to veto the group's £2.3bn purchase of Bass Brewers, is expected to decide this week whether to proceed with a judicial review aimed at overturning the ruling.

Interbrew, the Belgian company, which is still reeling from last week's decision by the UK Government to veto the group's £2.3bn purchase of Bass Brewers, is expected to decide this week whether to proceed with a judicial review aimed at overturning the ruling. Executives at Interbrew, which faces losses of about £500m if it is forced to dispose of the Bass assets, spent the weekend in meetings with lawyers and financial advisers. A spokesman for the company said: "By the middle of [this] week, we will have a clearer view of the grounds for a legal challenge."Any appeal is likely to focus on whether the ruling by Stephen Byers, the Secretary of State for Trade and Industry, was "reasonable and proportionate" compared to the perceived narrowing of competition that the Bass deal would bring. Interbrew's chief executive, Hugo Powell, said last Wednesday that the shock decision "defies logic and is clearly disproportionate to the competition issues at stake".It is likely that the brewer would offer to sell the Whitbread beer operations, acquired for £400m just weeks before the Bass purchase, as an alternative remedy to allay the competition concerns of the UK authorities. If Interbrew does decide to proceed with the challenge, it would be with the backing of the Belgian government, which has openly criticised the way the Bass investigation was handled.In a further blow to the newly-listed group, Interbrew is facing a potential fine of up to 435m euros (£278m) for alleged abuse of its market-leading position in Belgium. The company has set aside just 212.8m euros to cover "the anticipated financial consequences" of the inquiry. A decision on the case by Mario Monti, the EU Competition Commissioner, is expected soon.Elsewhere in the brewing sector, insiders at Diageo described reports that the company was considering a £4bn bid for Foster's, Australia's biggest beer and wine maker, as "highly speculative".Sources said it was unlikely that the UK brewer of Guinness would make any move until it had gained final regulatory approval for last month's $8.2bn (£5.6bn) acquisition of Seagram's drinks businesses.

A spokesman for Foster's said he was "not aware" of whether Diageo was lining up a bid and declined to comment further.. Retailer Kingfisher, owner of Woolworths and B&Q Kingfisher, today said it will sell its stake in French-based internet service provider LibertySurf for £149 million. Retailer Kingfisher, owner of Woolworths and B&Q Kingfisher, today said it will sell its stake in French-based internet service provider LibertySurf for £149 million. The deal with Italian ISP Tiscali comes amid speculation about the future of LibertySurf's operations overseas, including its London office.Kingfisher, which has a 35 per cent stake in LibertySurf, said it was time to cash in the value of LibertySurf's success for its own shareholders.After the sale, Kingfisher will have a 3.5 per cent stake in Tiscali, which has also bought French internet firm Euroatweb's shareholding in LibertySurf.On Friday, LibertySurf said it was reviewing its overseas operations, a move that could see it close its London office, which employs more than 100 people.It also has operations in Spain and Sweden.The company, which is estimated to have about 700,000 registered users across Europe, closed its Danish and Dutch operations last summer.. Troubled internet firm Breathe was today rescued from administration by Argos retailer Great Universal Stores (GUS). Troubled internet firm Breathe was today rescued from administration by Argos retailer Great Universal Stores (GUS). GUS has said that it plans to save at least 80 out of 140 jobs at Breathe's London and Warrington offices after buying the assets and technology of the business for £1.4 million.Breathe, which is controlled by mobile-phone entrepreneur Martin Dawes, went into administration last month after encountering financial problems.. EBay Inc., the American online auctioneer, said it has acquired a majority stake in South Korea's largest online auction business, Internet Auction Co Ltd., for about 150 billion won ($120 million).