Economics / Markets

The government's strategy for ensuring Britain stays out of recession is under pressure today after a slew of weak economic data.

Sterling tumbled a cent against the dollar earlier on surprise news Britain's manufacturing sector grew at its slowest for two years in May, sparking fresh fears about the economic recovery.

Eurozone inflation fell to a lower-than-expected 2.7% in May.

European markets are flying high on the back of fresh hopes a solution to the Greek debt crisis can be found along with positive economic news emanating from Japan.

The Bank of England will raise rates for the first time in four years in August in a bid to dampen inflation, according to the British Chambers of Commerce.

Barclays' decision to cut 500 positions in its corporate banking business has meant job losses in the UK banking sectors have hit almost 1,400 this week.

Business secretary Vince Cable has prompted a new confrontation with Chancellor George Osborne after warning Britain could face the "bomb" of a second financial emergency.

French finance minister Christine Lagarde has thrown her hat into the ring for the vacant top spot at the International Monetary Fund (IMF).

The global economy faces the risk of stagflation as rising commodity prices and slowing growth in China derail the recovery, said the Organisation for Economic Co-operation and Development (OECD).

The UK economy grew at 0.5% in Q1, in line with previous estimates, according to the Office for National Statistics (ONS).