Italy

Ratings agency Moody's has extended its review of Italy's Aa2 credit rating by a further 30 days as it assesses the country's financial position.

Stocks in the US and Asia rallied overnight after Italy turned to China for help with its debt crisis.

Fears over Italy's ability to push ahead with fiscal reforms have pushed bond spreads back up towards record levels as investors rush to safety once more.

ON EUROPE

ON UK INCOME

The European Central Bank said last night it would "actively implement" its controversial bond-buying programme to fight the eurozone's debt crisis, signalling it will buy Spanish and Italian government bonds.

The European Central Bank (ECB) has voted to hold interest rates and will boost liquidity in the eurozone in an attempt to prevent the sovereign debt crisis from spreading to Italy and Spain.

Spanish and Italian government borrowing costs have hit eurozone-era highs as investors continue to worry over the state of their respective economies.

Invesco Perpetual remains positive on the prospects for the Spanish economy despite Moody's hinting it may downgrade the nation's credit rating this morning.

EU leaders have agreed a further €109bn (£96bn) bailout for Greece, one-third of which will come from private sector bondholders.