Economics / Markets

Federal Reserve chairman Ben Bernanke has warned of a Lehman-style meltdown if the US Congress uses the national debt limit as a "bargaining chip".

Exits at the FPC, more trouble for Glencore, an FSA probe at Eddie Stobart's, and a rush for inflation-beating savings bonds - our round-up of the nationals' top finance stories.

Government austerity measures and high levels of consumer debt pose "strong headwinds" for the UK's economic recovery, the IMF has warned.

Markets across Europe fell at the start of trading as an earthquake measuring 5.1 on the Richter scale hit Spain and commodities were heavily sold off in the US.

Sterling jumped across the board after the Bank of England's latest report said inflation is likely to remain above target for longer, fuelling expectations the MPC will act sooner to tackle price rises.

Bank of England governor Mervyn King has warned the extended holiday to celebrate the Royal Wedding last month will hurt GDP growth.

British businesses are seeing costs rise far more slowly than the headline inflation rate, signalling that price increases are set to return to the Bank of England's target, according to leading economic analysts.

Speculation the Bank of England will lower its economic growth forecasts has caused the pound to slump in afternoon trading.

The FTSE 100 rose at opening today after a boost from US markets which closed higher on Monday.

Commodities have rebounded from their biggest plunge since the financial crisis on the back of upbeat US economic data, rising demand from emerging economies and a falling dollar.