Economics

A leading member of the US Federal Reserve has tried to calm markets by stressing plans to start tapering its QE programme depend on the economy recovering.

Eurozone countries face a decade of deflation and stagnation if governments fail to tackle debt and slow growth plaguing the region, Standard Life Investments' global strategy head has said.

The Bank of England has revealed controversial plans to relax rules governing safety standards for lenders in a bid to provide a £70bn boost to the economy.

Global equities climbed overnight as poor growth figures from the US allayed fears the Federal Reserve will soon slam the brakes on its stimulus programme.

Chancellor George Osborne has said he will cap the country's welfare budget each year for the next four years from April 2015 - but the state pension will not be included.

Outgoing Bank of England (BoE) governor Sir Mervyn King has accused banks of attempting to influence financial regulation by putting pressure on senior politicians - including the Prime Minister.

The BBC has raised £170m to help finance BBC Worldwide after tapping bond markets for the first time in its history.

Reducing the base rate from its current historical low of 0.5% into negative territory "remains an option" for the Bank of England's Monetary Policy Committee (MPC), deputy governor Charles Bean has said.

A dramatic shift in the outlook for interest rates has been seen with money market indicators now pricing in a base rate rise in the UK to 0.75% in two years' time rather than three.

Chinese stocks sank deeper into bear market territory on Tuesday as fears over a credit crunch in China escalated.