Economics

Woeful economic data in the US and a three notch downgrade of Greece's credit rating saw global markets tumble overnight.

Sterling tumbled a cent against the dollar earlier today on surprise news Britain's manufacturing sector grew at its slowest rate for two years in May, sparking fresh fears about the economic recovery.

Andrew Sentance, who yesterday stepped down as a member of the Bank of England (BoE) Monetary Policy Committee (MPC), has condemned the Bank's refusal to raise interest rates.

Financial regulators in Europe have called on the Obama administration to speed up reform of its banking regulations to prevent the world's largest economy gaining an unfair advantage over counterparts.

Eurozone inflation fell to a lower-than-expected 2.7% in May.

The British Chambers of Commerce (BCC) has predicted interest rates will hit 1% by the end of this year despite the lacklustre economic recovery.

The Bank of England is "failing in its remit" to control rising inflation which could undermine demand for bonds, according to Artemis manager James Foster.

Andrew Sentance has warned against any further delay in raising rates in his last speech as a member of the Bank of England's Monetary Policy Committee.

Business secretary Vince Cable has prompted a new confrontation with Chancellor George Osborne after warning Britain could face the "bomb" of a second financial emergency.

The UK economy grew at 0.5% in Q1, in line with previous estimates, according to Office for National Statistics (ONS)figures.