Economics

The FTSE 100's long-running rally has been brought to a dramatic close this morning, with the index shedding 133 points in early trading as fears over an end to the US quantitative easing programme spook investors.

The Office for National Statistics' second estimate of Q1 GDP has left the reading unrevised at 0.3%, but hopes are growing of a more positive Q2 figure.

Households and businesses should be told borrowing costs will remain at rock-bottom levels until the economy is motoring again, the International Monetary Fund has said.

Japan's Nikkei 225 index has closed down 7.3% as comments from Federal Reserve chairman Ben Bernanke over a potential scaling back of quantitative easing spooked investors worldwide.

UK CPI inflation has fallen to 2.4% in April, a larger-than-expected drop from the 2.8% figure recorded in March.

Vodafone has reported a record fall in organic service revenue in the first three months of 2013 but has hiked its full-year dividend by 7%.

ECONOMICS

Outgoing Bank of England Governor Sir Mervyn King has urged successor Mark Carney not to spell out how long interest rates will remain low when he takes charge.

Fidelity Worldwide Investment has cut a number of jobs across its IFA sales team, Investment Week can reveal.

The government is set to push ahead with plans to privatise Royal Mail this year in a £3bn float, as profits at the group continue to impress.