Economics

HOW DID WE GET HERE?

The UK is heading for zero average GDP growth over the next five years, according to the chief strategist at Arbuthnot Securities.

The FTSE has opened trading in positive territory amid signs European policy makers are moving to stem the eurozone debt crisis.

European markets have fallen further into the red in mid-morning trading on the back of recessionary fears, with the FTSE 100 suffering triple-digit losses.

US jobs data provided some much needed respite for investors on Friday, after the latest figures beat estimates.

US markets have reversed earlier gains after manufacturing data raised further doubts about the strength of the economic recovery.

The FTSE has opened in negative territory after a gloomy assessment of the US economy pushed European shares lower.

The US economy grew at a worse than expected 1.8% in the first quarter, unchanged from April's first reading, the US Commerce Department has confirmed.

Global markets have marginally recovered after yesterday's surprise Standard & Poor's downgrade of the outlook for US debt caused widespread falls.

Adam Posen, the Bank of England policymaker, has predicted inflaton will fall to 1.5% by mid-2012 as the government's austerity drive and a weak economy will curb consumer spending.