Europe

Greece's credit rating has been cut to the lowest level of any nation after Standard & Poor's warned that the danger of a default by the country has risen significantly.

Tension between the European Central Bank and the German government has intensified as Jean-Claude Trichet hit back at the German finance minister's claims Greek government bondholders should contribute to a new aid programme.

The International Monetary Fund (IMF) has warned UK inflation will remain above 4% for most of this year because of external factors.

ON EUROPE

Eurozone finance ministers have provisionally agreed a new bailout package for Greece as the embattled nation struggles with its mounting debt.

Financial regulators in Europe have called on the Obama administration to speed up reform of its banking regulations to prevent the world's largest economy gaining an unfair advantage over counterparts.

ON EUROPE

RLAM European Growth manager shuns defensives and piles into banks with eurozone issues ‘already in the price'.

THREE OPTIONS FOR THE GREEKS

Artemis' William Littlewood has moved to a short position in gilts in his £971m Strategic Assets fund, warning the UK's debt position is almost as bad as Portugal's.