Economics

The Bank of England has proposed setting up an internal oversight committee to monitor and assess the processes employed in making financial stability policy decisions.

Bank of England governor Mervyn King has urged investors and public authorities to pay less attention to ratings agencies, which he said have often "rushed" to downgrade.

Egypt has asked the International Monetary Fund (IMF) to grant it a $3.2bn standby facility in order to help the country shore up its economy.

UK CPI inflation fell from 4.8% in November 2011 to 4.2% last month, the largest drop since December 2008, according to the Office for National Statistics.

The number of stocks on the US stock market has reached its lowest level since 2009 as companies cut back on share sales and buy back equity at the fastest pace in four years

Stocks in Asia rallied overnight as reports of slowing Chinese growth increased speculation the government would act to ease lending curbs and avoid a hard landing.

Ratings agency Standard & Poor's has downgraded the EU bailout fund to AA+ from AAA.

China's economy grew at its slowest pace in more than two years in the final quarter of 2011, latest government figures show.

The UK and the US could be dragged into a eurozone-style sovereign debt crisis if they waver on austerity plans, said Invesco's John Greenwood.

HSBC chairman Douglas Flint has called time on the eurozone sovereign debt crisis and said it is set to be over in a "reasonably short timeframe".