Eurozone

UK stocks have tumbled sharply this morning after Fitch labelled Britain's fiscal challenge as "formidable".

The Government would have to double the scale of the cuts it has already planned to come anywhere near to Canada's example of a public sector bonfire, experts have said.

The UK 10-year gilt yield fell below 3.5% yesterday as investors continued to move out of the troubled eurozone.

M&G's Richard Woolnough, who sparked strong debate over his negative view on the euro, discusses why a new single-currency might be the best thing for the troubled European bloc.

The euro will have broken up before the end of this Parliamentary term, according to the majority of economists surveyed by The Sunday Telegraph.

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The Czech Republic President has hit out at the eurozone bloc, saying the union has failed to bring meaningful economic benefits to its members.

Banks in the eurozone will suffer "considerable" loan losses in 2010 and 2011, potentially leading to €195bn (£165bn) in futher write-downs, the European Central Bank warns.

M&G's Richard Woolnough has initiated a number of derivative positions in sovereign bond markets to try and profit from the volatility caused by recent eurozone pressures.