Economics / Markets

China has set the renminbi-dollar exchange rate at its highest level in five years, after announcing it would make its currency more flexible.

The financial services industry grew at the fastest rate since Northern Rock collapsed in the last three months - but the "modest pick-up" in activity was lower than expected.

The FTSE 100 has opened in positive territory as investors react with relief to a watered down US financial services reform bill.

UK banks could be under further pressure to curb lending after the G20 drafted rules to force them to bolster balance sheets by as much as £130bn.

The US Congress is finally close to completing the largest policy reform of the financial sector since the 1930s.

Embattled oil major BP saw its share price dive below 300p on the FTSE earlier today after the estimated cost of the Gulf of Mexico oil spill was revised upward to $2.3bn (£1.57bn).

BP has spent $2.35bn (£1.5bn) so far cleaning up the oil slick in the Gulf of Mexico, and has paid out $126m in compensation.

The FTSE 100 index has clawed back some of the previous session's sharp losses this morning.

Europe must focus on growth as well as cutting spending to reduce national deficits, US Treasury Secretary Timothy Geithner says.

With the BP crisis and a slowing UK economy further compounding an already delicate situation, investors are nervous.