Chancellor Alistair Darling has announced the Government will integrate Northern Rock Asset Management (NRAM) and Bradford & Bingley (B&B).

Mervyn King was outvoted by fellow policymakers in his attempts to pump even more money into the economy this month.

Morgan Stanley has issued an alert on corporate bonds after an explosive rally, reports the Telegraph.

The Bank of England's Monetary Policy Committee (MPC) noted improving market conditions before unanimously voting to hold interest rates at 0.5%, the minutes of the July meeting have revealed.

As US markets opened, the Dow Jones slipped slightly, down 0.03% to 8328.95 points following a strong rally yesterday on the back of hopes for an economic recovery.