Economics / Markets

Greece is prepared to turn to the IMF for help if its European neighbours fail to provide the financial assistance it wants after announcing the toughest spending cuts in decades.

The euro has risen against the dollar this morning after the Greek government unveiled 4.8bn euros worth of austerity measures.

Financials rose this morning, but could not prevent the FTSE falling 0.2%, or 8.8 points to 5475.28.

The City regulator has warned the cost of bailing out the banking sector could be as much as £140bn - far higher than Treasury forecasts.

The euro has fallen to a 10-month low against the dollar, amid poor economic data and ongoing concerns about the stability of the Greek economy.

Pimco chief executive officer Mohamed El-Erian believes the UK has more tools at its disposal to tackle its economic problems than countries like Greece.

Miners continue to lead the FTSE 100 into positive territory after rising copper prices led to a strong showing yesterday.

Dubbed the "Red Knights", a group of financiers has met to discuss a billion-pound takeover of Manchester United.

Lord Turner will tell Parliament today regulators such as the FSA should force new, higher, capital and liquidity ratios on the world's largest banks.

Mining shares helped the FTSE 100 jump more than 56.81 points (1.1%) to 5,411.33 in early trading after copper prices hit a five-week high following the earthquake in Chile.