IMF

ON EUROPE

The International Monetary Fund (IMF) has cut Asia's growth forecast for this year and next, and said it fears Europe's debt crisis may trigger a sell-off in Asian assets.

The UK economy has been dealt a fresh blow from the International Monetary Fund after it cut its growth forecast for this year and next and warned a lack of growth could derail the chancellor's austerity drive.

Fears over liquidity and sovereign debt contagion mean the threat of nationalisation has spread to leading players in Europe's banking sector.

Sharat Dua, portfolio adviser to the Charlemagne Magna Africa fund, asks why the continent is not attracting investors' money.

The FTSE 100 is extending early losses after data from the vital UK services sector showed the largest decline in activity in a decade.

The International Monetary Fund has slashed its growth forecast from 2.5% two months ago to 1.6%, according to Italian news agency ANSA.

All criminal charges against former IMF head Dominique Strauss-Kahn were dropped in a New York court on Tuesday, following accusations of a sexual attack on a hotel maid.

The new managing director of the International Monetary Fund has told the US to resolve its debt ceiling "immediately" or risk "serious spillovers to the rest of the world".

Fitch has downgraded Greece to CCC status, one notch above default, due to growing concerns private investors do not want to participate in any bailout of the country.