Economics

Dominique Strauss-Kahn's role as head of the International Monetary Fund (IMF) looks increasingly untenable following comments from US Treasury Secretary Tim Geithner he "cannot run" the IMF.

The yen has plunged against a basket of currencies after the Bank of Japan said the economy is in a perilous state.

Inflation rose to its highest level since September 2008 last month, reversing the previous month's retreat and breaking sterling's five-day decline against the dollar.

European governments yesterday discussed the prospect of a fresh multi-billion euro bailout for Greece - just a year after committing €110bn - in a bid to calm the markets and stabilise the region's currency.

The US treasury is battling to slash spending after the country's national debt soared to $14trn, reaching a self-imposed limit set by Congress last century.

Slower global growth combined with the end of QE in the US has left commodities vulnerable to a further correction, Cazenove's Richard Jeffrey has warned.

European markets opened lower on news of IMF chief Dominique Strauss-Kahn's arrest on sexual assault charges, amid fears his absence from eurozone talks will delay bailout plans for Portugal and Greece.

European debt crisis talks have fallen into disarray as the head of the International Monetary Fund, Dominique Strauss-Kahn, was charged with sexually assaulting a maid in a New York hotel.

The economies of the 17 countries in the single currency block grew 0.8% in the first three months of 2011, up from 0.3% in Q4, figures released today reveal.

Cutting deficits is popular in the heavily indebted Western world. Some countries are being forced to, as lenders decline to lend them more money at realistic interest rates.