IMF

European governments yesterday discussed the prospect of a fresh multi-billion euro bailout for Greece - just a year after committing €110bn - in a bid to calm the markets and stabilise the region's currency.

European markets opened lower on news of IMF chief Dominique Strauss-Kahn's arrest on sexual assault charges, amid fears his absence from eurozone talks will delay bailout plans for Portugal and Greece.

European debt crisis talks have fallen into disarray as the head of the International Monetary Fund, Dominique Strauss-Kahn, was charged with sexually assaulting a maid in a New York hotel.

Government austerity measures and high levels of consumer debt pose "strong headwinds" for the UK's economic recovery, the IMF has warned.

Portugal's caretaker prime minister Jose Socrates has announced he has reached agreement on a bail-out from the EU and the International Monetary Fund.

The IMF has cut growth expectations for the UK for this year to 1.7%, down 0.3% from its previous prediction in January.

China is cutting import tariffs and easing restrictions in an attempt to re-balance its trade policy, says US Treasury Secretary Timothy Geithner.

A member of the US Federal Reserve has called for Wall Street's financial giants to be broken up to avoid another financial crisis.

The International Monetary Fund has revised its global growth forecast upwards to 4.4%, as the UK is expected to report a slowdown in its recovery later this morning.

Germany, the strongest country in the eurozone, has vetoed any increase in the €440bn rescue package.