GDP

Bank of England (BoE) Governor Mervyn King has issued a stark warning to MPs "not to read too much" into recent strong GDP figures.

One of the most frequent assertions by fund managers across the UK investment press over the last year has been that, while the domestic economy may be set for anaemic growth, UK companies are set to fare a lot better.

Ignis' chief economist Stuart Thomson believes another round of quantitative easing "on a larger scale and over a longer period" is needed on both sides of the Atlantic to avoid a double-dip recession.

UK GDP increased by a surprise 1.1% in the second quarter, almost double the consensus estimate.

The UK's overall GDP growth forecast is at "significant risk" if business investment is not as robust as the Office of Budget Responsibility (OBR) predicts, ministers warn.

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.

AGRICULTURE

EMERGING MARKETS

EUROPE

China's GDP growth rate slowed to 10.3% in the second quarter, down from 11.9% the previous quarter, as the Government made efforts to cool the overheating economy.