Economics / Markets

The UK economy is set for more than a year of recession or stagnation, with only slow recovery thereafter, according to the centre for economics and business research (cebr).

Profitability and business volumes in the UK financial services sector fell at record rates in the three months to early September, according to the results of the latest CBI/PwC survey.

The FTSE100 has plunged under 5000 again this morning as investors retreat from financial stocks in the wake of the Government's Bradford & Bingley nationalisation.

The FTSE fell sharply this morning after talks to agree a $700bn bail-out of the US financial industry stalled overnight.

The FTSE closed today with a rise of 101.45 points (1.99%) to 6197.02 as financial stocks saw the biggest gains.

Shares in London remained broadly stable as markets opened, with the FTSE 100 up 0.25 points (less than 0.01%) to 5,095.8.

The FTSE ended trading with falls of 33.07 points (0.64%) to 5103.05, despite an EDF buy-out this morning.

East European stocks are attractively priced at present, with limited risks of further downward movement, according to Raiffeisen Capital Management (RCM).

The FTSE is currently down 2.85 points (0.06%) to 5133.27 despite an EDF buy-out.

Trading in London got off to a poor start after concerns on Wall Street spread, with the FTSE 100 down 100.14 points (1.91%) to 5,136.12.