Economics

Markets across Europe have rallied this morning following confirmation the European Central Bank (ECB) has started buying covered bonds.

The Bank of England's Sir Jon Cunliffe has warned bankers they are paid too much and should expect a pay cut following a sharp drop in banks' profits.

Shares in Tesco topped the FTSE 100 leaderboard in morning trading, providing some relief for investors as the wider market slipped back once again.

The Bank of England's chief economist has suggested interest rates could remain low for a protracted period without causing inflation to spike.

The broad sell-off across equity markets this week is just a mid-cycle correction and will only make the equity rally last longer, Fidelity's Dominic Rossi has said.

Old Mutual Wealth has finalised a deal to acquire Quilter Cheviot for £585m.

Sterling could fall much further against the US dollar if the UK's current account deficit is not addressed, bond managers have said.

The FTSE closed down 0.25% after yesterday's worst one-day fall in 16 months was followed by a volatile session today.

The UK unemployment rate fell from 6.2% to 6% in the three months to August, hitting a six-year low, according to the Office for National Statistics (ONS).

The UK's pharmaceutical sector dragged the FTSE deep into the red this morning after US giant AbbVie said it is reconsidering the planned takeover of Shire, casting doubts over elevated share prices.