Economics

The FTSE 100 has opened 0.5% lower, with European stocks deeper in the red, after Greece's bailout talks with creditors broke down overnight.

The FTSE 100 has reversed gains made earlier this week after the International Monetary Fund (IMF) walked out of bailout talks with Greece.

The FTSE 100 climbed in morning trading despite a 4% slump in Royal Mail shares as RBS and Sainsbury lifted UK blue chips.

Bank of England governor Mark Carney has used the annual Mansion House speech to warn that asset managers must prepare for the consequences of normalising monetary conditions.

Chancellor George Osborne is to begin selling the government's 80% stake in Royal Bank of Scotland at a loss, saying any further delay could jeopardise the economy.

Miners and financial are dragging down the FTSE 100 index this morning, with HSBC among the biggest fallers following the news of further cost-cutting at the bank.

Lloyds Banking Group has been hit with a record £117m fine by the Financial Conduct Authority for mishandling of payment protection product complaints.

The International Monetary Fund has urged policymakers in the US to delay hiking interest rates or face a further bout of "financial instability".

Chancellor George Osborne has announced the government is to sell its remaining 30% stake in Royal Mail.

The sell-off in European government bonds has spilled over into equities once again on Thursday, with UK stocks unable to escape the pain.