UK economy to see return to growth, says Item Club

The UK economy should enjoy an "Indian summer" after a poor first half of the year, says a leading forecaster.

Euro tumbles as Asian funds shun EU chaos

The single currency has been sliding relentlessly since the European Central Bank cut its discount rate to zero last week, triggering an exodus of money market funds, but has now broken key resistance levels watched by technical analysts.

Greek unemployment rate at new record of 22pc

Greek unemployment hit a record 22.5pc in April and may keep edging higher, with even the key tourism sector unlikely to provide more than fleeting support over the summer as visitors stay away from the recession-hit country.

Debt crisis: Sir Meryvn King warns of eurozone's 'black cloud of uncertainty'

The eurozone crisis has created a “great black cloud of uncertainty” Sir Mervyn King warned, as Germany’s Constitutional Court threatened to derail plans designed to take the region forward.

Spain faces budget risks despite looser target: document

BRUSSELS (Reuters) - Looser budget deficit targets for Spain may still prove difficult to reach, according to an EU document that demands the country be subjected to three-monthly checks, a move that will tighten supervision of the euro zone's fourth-largest economy.