IMF

The International Monetary Fund (IMF) has cut its forecast for the UK economy, now warning it faces a hefty contraction this year, as part of a downgrade of most nations globally.

UK asset managers are readying their contingency plans to cope with a possible ‘Grexit' as the beleaguered economy returns to the spotlight, despite ECB president Mario Draghi providing a boost for European markets last week.

Greece's European lenders have demanded the government in Athens enforces a six-day working week in order to meet the terms of the country's second bailout.

GLOBAL

ITALY

Greece is seeking a two-year extension to its austerity programme from the European Union and IMF as it struggles to find room for another €11.5bn of spending cuts.

Italian Prime Minister Mario Monti has described a psychological rift deeply ingrained within the eurozone that could potentially rip Europe apart.

GOLD

The UK economy shrank by 0.7% in the second quarter of the year, a far worse contraction than economists had forecast, keeping the UK mired in recession.

GDP data released today is expected to paint a miserable picture for the UK economy, with a contraction in growth forecast for the second quarter.