Economics / Markets

London's leading share index had a sluggish start this morning, while European markets fell on uncertainty over the Middle East and oil supply.

London is expected to have the largest "meaningful" jump in GDP of any city in the world between now and 2025 because of the booming financial services sector, according to new research from Citigroup.

The Chancellor has defended the Bank of England over rising inflation and denied the government is making its job more difficult.

WHEN SHOULD INTEREST RATES GO UP?

London's leading share index was boosted this morning by a two-year high on Wall Street, following robust earnings reports and positive economic data.

FSA chief executive Hector Sants has rejected any suggestions the regulator should disclose details of bankers' remuneration.

The Icelandic parliament has approved a plan to repay the UK and the Netherlands the €4bn (£3.1bn) they compensated to Icesave investors.

Sterling fell against the dollar and the euro after the Bank of England downgraded its economic growth forecast for 2011.

A series of quarter-point interest rate hikes will begin in May, according to analysts examining Bank of England governor Mervyn King's latest obligatory letter to the Chancellor.

The Dow Jones is trading in the red after lower-than-expected US retail sales figures weighed on investor sentiment.