Economics / Markets

Spain's banks have been told to find an extra €17bn (£14.5bn) to shore up their finances and prevent a collapse in confidence, which has hit the share prices of Barclays and RBS as both have exposure to the Iberian institutions.

A major earthquake in Japan last night rocked fragile markets already reeling from Moody's downgrade of Spain yesterday, with the FTSE 100 falling further after hitting a five week low.

The FTSE100 fell in early trading as concerns over EU debt problems offset any reassurance the market might take from easing oil prices.

Northern Rock PLC has announced underlying losses of £232.4m for 2010 in its first annual results since being split from its toxic loans.

US stocks closed lower on Friday despite a strong labour market report for February, as the oil price continued to rise, driven by continuing turmoil in Libya.

European Central Bank president Jean-Claude Trichet has hinted interest rates may rise next month to fend off inflation pressures.

The chief executive of UBS has attacked the government for its neglect of the City, warning tougher regulations could see investment banking businesses move from the UK and Europe to Asia and the US.

The UK could be entering a "profoundly different" era of slow growth and high debt reminiscent of the economic ills engulfing Japan, says the BBC's economics editor Stephanie Flanders.

Ongoing disruption in the Middle East and the higher oil price has dragged on global markets, with many seeing losses of more than 1%.

Billionaire investor Warren Buffett's bullish outlook for the US has boosted markets, pushing the Dow Jones up 96 points and the FTSE back above the 6,000 mark.