Economics

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.

Markets across the globe tumbled overnight after the US Federal Reserve announced it may slow down asset purchases by the end of the year.

The Chancellor, George Osborne, has said it would have been wise to split majority-government owned Royal Bank of Scotland (RBS) into a good and bad bank when the crisis erupted, paving the way for such action to be taken in the future.

The Bank of England has appointed Charlotte Hogg, head of retail distribution and intermediaries at Santander UK, as its chief operating officer.

The Cypriot president has asked eurozone officials to overhaul the country's €10bn bailout plan due to its unmanageable impact on the Cypriot economy, according to reports.