The government's plans to ringfence UK banks' retail businesses are 'barking mad' and could threaten the fragile economic recovery, the chief of a leading British business association has said.

Japan's beleaguered prime minister Naoto Kan has resigned after a turmoil-filled 15 months in office, clearing the way for the country's sixth leader in five years.

Billionaire investor Warren Buffett has agreed a deal which will see his firm Berkshire Hathaway invest $5bn in Bank of America.

Gold prices took a nose dive overnight as investors u-turned on risk assets ahead of an expected round of further stimulus in the US, leaving the price more than $160 lower.

The cost of buying insurance on debt issued by the Royal Bank of Scotland has hit a record high as fears over bank funding return to plague markets.

Fidelity's Sanjeev Shah has highlighted a range of stocks he is backing following the sell-off in global markets.

Fidelity's Sanjeev Shah, manager of the group's £2.7bn Special Situations fund, said UK share prices look their most attractive for two years following the sell-off in markets.

Fidelity is to rename its top performing UK Opportunities fund to better reflect its investment policy.

Gold soared above $1,900 for the first time overnight as investors continue to flock to the precious metal amid ongoing turmoil in financial markets.

Brent crude fell back sharply towards $100 overnight as the Libyan uprising moved closer to its conclusion.