Economics

Britain's largest banks will present their "living wills" to the FSA next month, ahead of the G20 summit of leading industrialised nations in South Korea.

Nouriel Roubini, the economist dubbed ‘Dr Doom' for predicting the US housing crash, believes the dollar, yen and Swiss franc may be better investments than gold if the global economy suffers a double dip.

THE BIG INTERVIEW

Mike Riddell, member of the M&G bond team, explains why the UK is now starting to face a slowdown.

Markets are braced for more gloomy news on the western economies with US data expected to confirm a poor outlook for jobs and shaky confidence.

The UK economy faces a "triple whammy" of higher inflation, lower growth, and rising unemployment, the Bank of England's chief economist has warned.

The UK Government's net borrowing was £14.5bn in June, marginally below the shortfall of £14.7bn one year earlier but still worse than economists had expected.

The FTSE has plunged into the red as concerns over US economic growth and mixed results from big corporates drove Wall Street into negative territory at the start of trading.

HSBC, Barclays and RBS are among 15 Wall Street banks accused by a US investment firm of mis-selling a total of $2.4bn (£1.6bn) in mortgage-backed securities, reports the Telegraph.

The FTSE has opened trading in positive territory, but fears of a double-dip recession on the back of disappointing US and Chinese economic data still abound.