Economics / Markets

UK shares were under pressure in early trading after sharp falls in the US caused by a sharp rise in inflation.

The Governor of the Bank of England last night warned European officials not to water down new bank safety rules or prevent the UK from imposing tougher measures to protect taxpayers.

Shadow chancellor Ed Balls is to use a major policy speech to call for a temporary emergency tax cut to stimulate the economy.

US inflation rose to a two-and-a-half year high, as rising food prices took their toll.

Mervyn King has claimed low capital requirements and inadequate limits on leverage have been the most "tragic" aspects of financial regulation.

Shares in major UK banks have plunged following reports Chancellor George Osborne will force lenders to ring fence their retail arms.

Two of the banking industry's biggest names were paid more than fifteen times their 2009 earnings last year, analysis suggests.

The government is set to force banks to ring-fence their retail operations from investment banking.

May's UK inflation reading remained unchanged from April, official figures have shown, giving Bank of England governor Sir Mervyn King some respite.

Greece's credit rating has been cut to the lowest level of any nation in the world after Standard & Poor's warned that the danger of a default by the country has risen significantly.