Economics / Markets

China's economy grew by a greater-than-expected 8.7% in 2009 - putting the country on course to overtake Japan as the world's second biggest economy.

The head of Britain's biggest bank, HSBC, has criticised the Government's handling of the economy and called for austerity to get the country back on track.

The FTSE 100 rose sharply Thursday following promising economic news from China.

US shares tumbled in early trading on the back of disappointing results for three major banks and reports of a significant tightening in China's monetary policy.

UK pharmaceuticals rose in early trading after speculation mounted President Barrack Obama's healthcare reforms could be thwarted by the Republicans.

Legal & General Investment Management and Neptune have criticised Cadbury management over Kraft's agreed takeover bid, saying the 850p per share deal undervalues the confectioner.

UK inflation rose at the fastest annual pace for three quarters in December, according to the Office for National Statistics (ONS).

Fund managers have backed Cadbury's decision to accept Kraft's new increased bid for the confectioner.

Cadbury shares have bucked a poor start to FTSE 100 trading this morning, climbing over 3% on news it has agreed a £11.5bn takeover bid by Kraft.

Cadbury is poised to be taken over by US food conglomerate Kraft after its board approved a new increased bid.