Economics / Markets

The FTSE 100 was down almost 2% this afternoon as fears over Europe's sovereign debt woes and tighter monetary policy in China continued to weigh on investors.

Inflation is likely to remain high throughout 2011 but the Monetary Policy Committee (MPC) is more divided than usual over the reasons why, the Bank of England Governor says.

Mark Hoban, Financial Secretary to the Treasury, says the government has done what it can to help lending to small business and now the banks must take the lead.

Annual consumer prices inflation (CPI) rose in October to a four-month high of 3.2%, up from 3.1% in September and higher than economists' forecasts.

The index of 100 leading shares was down more than 1% just after 9am after flat trading on Wall Street and in Asia, with investors awaiting British inflation numbers.

The FTSE 100 dropped 0.49% or 28.19 points to 5,768.68 in early morning trading, as fears of lower demand from China dragged down mining stocks.

It's Friday..., so sit back, relax, and catch up with some of the more positive news this week.

Wealth levels per person in the UK hit their lowest level for five years in 2008 as a result of the financial crisis, although they have since rebounded.

The recovery in both France and Germany, Europe's largest economies, slowed considerably in the third quarter.

London's FTSE opened 1.7% down this morning on a poor day for global stocks, following heavy losses in Asia and fresh fears for the Irish economy.