Economics

Analysts are underestimating the extent of the problems facing the banking sector, in a scenario reminiscent of the collapse of Lehmans, said Colin McLean, managing director of SVM.

Finnish prime minister Jyrki Katainen has threatened to withdraw support for the Greek bailout unless granted security for its loans in the form of collateral, the Telegraph reports.

Asian markets are trading lower as investors weigh up hopes of further action by the Federal Reserve against Moody's downgrade of Japan.

All criminal charges against former IMF head Dominique Strauss-Kahn were dropped in a New York court on Tuesday, following accusations of a sexual attack on a hotel maid.

Credit rating agency Moody's has downgraded Japan's sovereign debt rating by one notch, saying weak political leadership has hampered growth.

Spain has put in place a public sector borrowing cap in an effort to tackle its debt burden, following calls from peers in Europe to take action.

Gold soared above $1,900 for the first time overnight as investors continue to flock to the precious metal amid ongoing turmoil in financial markets.

Dramatic stock market movements and disappointing economic data have caused leading economists to downgrade their growth forecasts, but they are still not predicting a recession, the FT reports.

The last few weeks have seen unprecedented market volatility as investors take fright at the ongoing debt crisis in the eurozone and a series of weak economic data from the US.

Tim Steer, manager of the £320m Artemis UK Growth fund, has labelled the takeover of Autonomy by Hewlett Packard as expensive after the US giant offered to pay a premium of about 75% for the firm.