Economics / Markets

Lawyers in the United States were predicting a wave of legal action last night in the wake of the $1bn fraud charge brought against Goldman Sachs by the US Securities and Exchange Commission.

The value of Warren Buffett's options to buy Goldman Sachs shares fell by over $1bn after the SEC sued the investment banking giant on Friday.

Prime Minister Gordon Brown wants the FSA to probe Goldman Sachs after the SEC announced it was suing the company for sub-prime related fraud.

The Centre for Economics and Business Research has increased its forecast of economic growth in Britain, predicting GDP would be about £20bn higher by 2020 if the Conservatives gain power.

Morgan Stanley has warned Germany could withdraw from the eurozone as the fallout from the Greek debt bailout continues.

The Tories have unveiled plans to launch Britain's first free national financial advice service at a cost of £50m a year.

The eurozone's bail-out scheme for Greece has been plunged into disarray after four German academics said they will legally challenge the rescue plan.

The FTSE has made modest gains in early trading, boosted by the buoyant performance of US stocks yesterday and strong economic data from China.

Britain's three main political parties all have a £30bn hole in their manifestos that will have to be plugged with huge tax rises or spending cuts after the election, according to Financial Times calculations based on their policy pledges.

Federal Reserve chairman Ben Bernanke has once again allayed fears of a double-dip recession saying the US is staging a "moderate economic recovery".