Economics

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.

The FTSE 100 was down in early trading as ongoing uncertainty about the Greek bailout hit markets and sent the euro lower against the dollar.

The eyes of the world's investors will be on the European financial markets this morning after a day in which eurozone debt fears saw the FTSE suffer its heaviest one-day fall in two months.

Dale Spencer, chief economist at the Bank of England, said interest rates in the UK should rise even though the economic recovery has failed to take hold, according to the Financial Times.

The Federal Bureau of Investigation (FBI) has joined the investigation into the alleged manipulation of LIBOR by UK banks during the financial crisis.

Yields on Greek 10-year government bonds have rocketed to record levels as fears rise the nation could default on its debt repayments, the FT reports.

The acting managing director of the IMF said the institution will continue to function effectively following the resignation of Dominique Strauss-Kahn.

London shares moved higher in early trading, reacting to overnight gains in the US which benefitted from the successful IPO of social networking powerhouse LinkedIn.

Investors are missing opportunities within the UK domestic space by focusing too much on overseas earnings, Ignis Cartesian's Jeremy Hall has warned.