Economics / Markets

Billions of pounds of banker bonuses may have been paid out "by mistake" as a result of miscalculations resulting from Britain's flawed accounting rules.

The German economy made a strong bounce-back in 2010, growing by 3.6%, according to provisional figures from the national statistics office.

UPDATE 12pm: The FTSE is 20 points higher while other key European markets have jumped 1.3% on news Portugal has succeeded in raising £1bn in a bonds auction, easing concerns over the country's need for an EU bailout.

A further 450,000 people will be trapped in the government's tax chaos, HM Revenue and Customs admitted yesterday.

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.