Economics / Markets

The UK's four major banks have passed EU stress tests, although five Spanish banks failed, the Committee of European Banking Supervisors (CEBS) said.

UK GDP increased by a surprise 1.1% in the second quarter, almost double the consensus estimate.

The FTSE was down in early morning trading by 21.35 points (0.40%) at 5292.46, as markets remain cautious awaiting the latest UK GDP reading - due at 9:30am - and EU bank stress test results due after close of business today.

Several of Spain's 18 savings banks have failed tests to see how they would cope with worsened economic conditions, according to reports.

Banks led the FTSE 2% higher in late trading on Thursday as positive economic news from the Eurozone eased fears of a double-dip recession.

Monetary Policy Committee inflation hawk Andrew Sentance has once again voted for a rise in UK interest rates.

UPDATE 12pm: The FTSE 100 index has climbed almost 1.6% in morning trading after strong late gains overnight on Wall Street.

The Chancellor will have no power to solely remove the head of the independent Office for Budget Responsibility (OBR), George Osborne has pledged.

George Osborne and Vince Cable fear rationing of lending to small firms could reverse the recovery.

BP has begun to offload assets aimed at raising cash to pay for the Gulf of Mexico disaster, agreeing the $7bn sale of fields in the US, Canada and Egypt to Apache.