Economics / Markets

Chancellor George Osborne has unveiled a range of cuts to government spending, aimed at bringing the UK's burgeoning deficit under control.

The Bank of England was split three ways in its last meeting on interest rates and QE, with two rogue members voting to change the path of monetary policy.

Bank shares in the US dived overnight after a group of investors united to try force Bank of America to repurchase soured mortgages packaged into $47bn of bonds.

China has raised interest rates for the first time since 2007 in a bid to stifle inflation and dampen down its overheating property market.

London recovered from an early blip in early trading on Tuesday as investors get ready for tomorrow's comprehensive Spending Review.

Former Bank of England policymaker David Blanchflower has warned the upcoming fiscal spending cuts could send the UK economy back into recession.

The FTSE 100 had a slow start to the week, down 0.32% or 18.43 points to 5,684.94, following mixed sessions in Asia and the US.

The Bank of England is likely to increase its quantitative easing programme by £100bn to aid the economy as the government cuts spending, the Centre for Economics and Business Research says.

The leaders of 35 of the UK's biggest companies have expressed their support for the government's plans for spending cuts running into billions of pounds.

The UK recovery is losing momentum and will slow over the winter but chances of a double-dip recession are "exaggerated", according to the Ernst & Young ITEM Club.