Record borrowing costs put Italy at centre of crisis

Fear made a swift return to the eurozone yesterday as Italy faced record borrowing costs in its first attempt to tap the markets since European leaders came up with new plans to rein in the sovereign debt crisis.

World stocks up on European rescue deal for Greece

World stock markets climbed again Friday, continuing to be buoyed by a European deal aimed at slashing Greece's massive debt and preventing the crisis from engulfing "too big to bailout" countries such as Italy.

French and German relief as Greek haircut not expected to trigger CDS

Major French and German financial institutions will be saved billions of euros in payouts if – as expected – the 50pc haircut on Greek government debt does not trigger credit insurance contracts

Euro zone rescue after marathon talks

Europe’s leaders have finally agreed a euro zone rescue plan after marathon talks lasting more than eight hours.

European banks need $150B in new capital

Europe's big banks will be forced to find €108bn ($150bn) of fresh capital over the next six to nine months under a deal to strengthen the banking system agreed by European Union finance ministers.