Economics / Markets

The chances of the euro breaking apart or disintegrating completely have been put at "one-in-five" by one of the UK's leading economics consultancies.

A preliminary deal has been reached for the Icelandic government to repay funds to the UK and Dutch governments lost from the collapse of Icesave.

The Bank of England has held interest rates at 0.5% and left unchanged its quantitative easing programme at £200bn.

The Government is sitting on a war chest worth billions of pounds that could be used to help reduce the national debt or finance new spending plans.

Ireland has unveiled the most draconian budget in its history with €6bn of cuts and public sector pension reductions ahead of an expected €85bn bailout from the EU and IMF.

The FTSE advanced 40 points in early trading on Tuesday as investors were buoyed by news of US tax cuts, but European debt fears were keeping a lid on sentiment ahead of the Irish budget.

The Irish Republic is poised to unveil the details of a severe austerity budget later, part of a deal to secure an €85bn bail-out from the European Union and International Monetary Fund.

Warren Buffett has pledged $50m to the creation of a UN nuclear fuel bank, keeping a promise the Sage of Omaha made back in 2006.

The high court is today hearing a challenge to the emergency budget on the grounds it will affect females disproportionately.

A flurry of merger and acquisition rumours failed to prevent the FTSE slipping into negative territory after making initial gains on the back of buoyant mining stocks.