Economics / Markets

George Osborne has told banks he will be forced into further action if they do not cooperate with the government on measures to curb bonuses.

Banks helped the FTSE add 1% in morning trading Tuesday as the index climbed above 6,000 once again.

UK economic growth slowed towards the end of 2010, according to figures from the British Chamber of Commerce (BCC), sparking fears a recovery is faltering.

Britain's banks were given the go-ahead last night to pay unlimited bonuses, drawing to a close a two-year political battle to rein in the City.

WHY THE UK MARKET WILL RISE IN 2011

Ruth Lea, economic advisor to the Arbuthnot Banking Group and senior fellow of the Adam Smith Institute, says 2011 holds some room for optimism but overall the near future isn't bright.

David Cameron has criticised banks and building societies for being too cautious with their mortgage lending and preventing the housing market from progressing.

The euro has fallen against the dollar amid renewed debt fears in the region as the yield on Portugal's treasury bill sale climbed to nearly double that of its last issuance.

Surging oil prices pose a threat to the economic recovery and nations must look to reduce their reliance on the black gold, says the International Energy Agency (IEA).

Gartmore shares dragged on the FTSE 250 yesterday amid fears takeover talks have slowed.