News

The Conservative and Liberal Democrat coalition Government will implement a banking levy and set up an independent commission to investigate separating retail and investment banking.

Inflation is set to fall below its 2% target - even if interest rates remain at their record low, the Bank of England said in its quarterly inflation report.

US authorities are investigating whether Morgan Stanley misled investors over mortgage derivatives, according to the Wall Street Journal.

The UK's employment rate fell 0.3% between the fourth quarter of 2009 and the first quarter of 2010, according to labour market figures released today by the Office for National Statistics.

The FTSE edged higher while sterling fell from a 10-month high on the first day of the UK's new coalition Government.

Prudential chief executive Tidjane Thiam is pressing ahead with the faltering AIA deal, vowing to persuade shareholders to back the $35.5bn (£23.7bn) takeover of AIG's Asian business.

Thirteen years of New Labour came to a dramatic end yesterday as David Cameron was declared Prime Minister and head of Britain's first coalition Government for 70 years. Here's what the papers say about the new man at number 10.

Both former shadow chancellors George Osborne and Vince Cable have been given positions in the new coalition cabinet.

Capital gains tax (CGT) is set to rise on so called 'non-business' assets under the new coalition Government to help reduce income tax for low earners.

The FTSE is down 2% at 5278.76 points as traders continue taking profits, paring back the benchmark's extraordinary 5.2% jump yesterday.