Economics

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.

It is "inevitable" Italy will need an EU bailout in the next six months, according to analysts at the country's second largest bank.

The FTSE 100 has continued to sell off in early trading on Monday following further falls in Asia, as investors continue to dump stocks on fears QE will be withdrawn in the US.

The Bank for International Settlements (BIS) has warned spiking bond yields across the world threaten trillion of dollars in losses for investors and a fresh crisis for banks unless they are braced for the shock.

Goldman Sachs and Morgan Stanley have downgraded a number of asset management firms on fears some fund groups will see net outflows for the second quarter of this year.

The FTSE 100 has halted its two-day slide as investors buy back into equities following yesterday's sharp sell-off, with Lloyds and other financials leading the pack.

The FTSE 100 has slumped 3%, gold has dropped 5% and gilt yields have spiked to their highest level in over a year as the prospect of an end to US QE rattles markets.

UK banks need to raise billions more in capital to cover their risks, the regulator has said.

Sir Mervyn King, the outgoing governor of the Bank of England who has spent more than two decades at Threadneedle Street, is to be made a life peer.