Economics / Markets

European officials are working on a grand plan to save the eurozone involving a massive bank recapitalisation, giving the bail-out fund several trillion euros of firepower, and a possible Greek default.

Oswald Gruebel, the chief executive of Swiss bank UBS, has resigned over an alleged £1.5bn ($2.3bn) rogue-trading loss.

The Dow Jones has opened slightly down, following a day of volatile trading in Europe.

London's blue chip index stood firm in early trading today after yesterday's global sell-off.

Prime Minister David Cameron warned last night the global economy is under threat by the failure of eurozone leaders to agree a lasting deal to stabilise the single currency.

(Updated 2pm) Continued heavy selling saw London's FTSE 100 slump by more than 4.9% to its lowest level in a month after the Federal Reserve painted a gloomy picture of the global economy.

Billionaire investor Warren Buffett has retained second spot in Forbes latest list of America's richest people, despite seeing his personal wealth fall by $11bn.

The Federal Reserve will not pump extra money into the ailing US economy, but policymakers last night unveiled a new scheme which they hope will stimulate growth.

The case for further QE in the UK "significantly strengthened" in the past month, with any repeat of recent economic woes likely to lead to further stimulus, the MPC has said.

Ministers are discussing plans to inject up to £5bn into the economy without abandoning their deficit reduction strategy, according to reports.