Bank of England (BoE) Governor Mervyn King has issued a stark warning to MPs "not to read too much" into recent strong GDP figures.

Banks are once again leading the FTSE 100 gains in early trading, after a number of stocks soared upwards of 10% yesterday on the relaxing of Basel III rules.

Bestinvest has recruited former UBS head of operations Donald Reid as chief operating officer.

UPDATE 12pm: The FTSE 100 index has climbed almost 1.6% in morning trading after strong late gains overnight on Wall Street.

George Osborne and Vince Cable fear the rationing of lending to small firms could reverse the UK's economic recovery.

The UK's overall GDP growth forecast is at "significant risk" if business investment is not as robust as the Office of Budget Responsibility (OBR) predicts, ministers warn.

The FTSE 100 index of leading shares has dropped more than half a percentage point this afternoon following a shaky start in trading.

The Bank of England has made nearly £10bn in paper profits by buying UK government bonds as part of emergency efforts to pump money into the British economy.

Leading City investors are plotting to force Prudential chairman Harvey McGrath out before the beleaguered insurer's half-year results on 12 August, according to reports.

The FTSE 100 index is seen rising on Friday, clawing back some of the previous session's sharp losses.