Economics / Markets

European markets advanced in early trading Thursday ahead of a key conference on global financial reform in Berlin.

After days of political back-stabbing and intrigue, the new coalition government was finally unveiled last week.

The Dow plunged 1% in early trade today following German Chancellor Angela Merkel's warning the euro could collapse.

Miners are among the early fallers on the FTSE as European markets tumble following a ban on naked short-selling in Germany.

The Government's first foray to Brussels ended with defeat for George Osborne yesterday as European Union finance ministers backed a tough crackdown on the City.

This week: Tony Yousefian, CIO at OPM Fund Management, asks if the €750bn bail-out fund is a short-term fix for the euro or a long-term solution.

Bank of England governor Mervyn King yesterday set out his reasons for the overshoot of CPI inflation last month in a letter to new Chancellor George Osborne. They were all dubious, says Henderson chief economist Simon Ward.

George Osborne is set to announce cuts to corporation tax tomorrow in an effort to defuse the controversy over plans to increase capital gains tax (CGT).

The Consumer Prices Index (CPI) hit a 17-month high of 3.7% in April, forcing Bank of England Governor Mervyn King to write to new Chancellor George Osborne to explain why.

The FTSE has made steady gains in afternoon trading as London shares were buoyed by the Dow's positive start to trading and concerns over the EU debt fallout subsided.