Markets

The FTSE 100 has slumped 3%, gold has dropped 5% and gilt yields have spiked to their highest level in over a year as the prospect of an end to US QE rattles markets.

UK banks need to raise billions more in capital to cover their risks, the regulator has said.

Sir Mervyn King, the outgoing governor of the Bank of England who has spent more than two decades at Threadneedle Street, is to be made a life peer.

Markets across the globe tumbled overnight after the US Federal Reserve announced it may slow down asset purchases by the end of the year.

The Chancellor, George Osborne, has said it would have been wise to split majority-government owned Royal Bank of Scotland (RBS) into a good and bad bank when the crisis erupted, paving the way for such action to be taken in the future.

Liontrust chief executive John Ions has said the group "does not see the need" to offer multiple share classes to different distributors in order to stay competitive.

The Bank of England has appointed Charlotte Hogg, head of retail distribution and intermediaries at Santander UK, as its chief operating officer.

The Cypriot president has asked eurozone officials to overhaul the country's €10bn bailout plan due to its unmanageable impact on the Cypriot economy, according to reports.

The long-awaited Parliamentary Commission on Banking Standards report has criticised the government's handling of part-nationalised UK banks and recommended criminal sanctions for senior executives who behave "recklessly".

UK CPI inflation rose from 2.4% to 2.7% in May, according to the Office for National Statistics, a larger than expected rise driven by transport and clothing costs.