Economics / Markets

Speculators increased bets against sterling to record levels even after the formation of the new coalition government, as worries escalated over the health of UK finances.

Britain is at risk of sliding into a Japan-style period of deflation, according to a Bank of England policymaker.

AIA's chief executive has told friends and industry executives he would quit if the UK's Prudential succeeded in its $35.5bn (£24.6bn) takeover of the group's Asian arm.

Updated 1.40pm: The FTSE recovered slightly after plunging at midday on news of the coalition government's £6.2bn spending cuts.

State investment in British business will be cut by £636m this year, as Chancellor George Osborne seeks to drive a "private sector recovery".

The FTSE 100 sunk below the psychologically-crucial 5,000 point mark for the first time since October 2009 today after Germany's parliament approved the country's contribution to a €750bn eurozone rescue deal.

The economic monopoly enjoyed for so long by the US is set to come to an end, with Bric countries moving in to replace it, Robin Geffen says.

Short-term speculators should bear the burden of the capital gains tax (CGT) hike announced yesterday by the coalition Government, says Fidelity.

Leading City experts have started raising the prospect of "Great Depression II" amid worries the European economic crisis could trigger a deeper bout of chaos.

The US Senate passed legislation last night toughening regulation of the financial sector.