The government's banking rescue package has been broadly welcomed by unions and banks, although shareholders have expressed concern over the plans.

Consumer confidence fell again in September after two months of stability as turmoil in the financial system hurt sentiment.

UK banks are waiting for official confirmation from the chancellor that they will be part nationalised in a bid to resist the global credit crisis.

The UK fell into recession in May, according to new GDP estimates.

Gordon Brown, Alistair Darling and Mervyn King are to meet this evening to discuss the current banking crisis.

Pope Benedict XVI yesterday weighed into the financial crisis hitting the world, claiming it showed the futility of money.

After yesterday's unprecedented falls, the FTSE 100 opened higher today and had gained 120 points by 08:25 BST.

After yesterday's unprecedented falls, the FTSE 100 opened higher today and had gained 120 points by 08:25 BST.

Australia's central bank reacted to the global stock market slump with a surprise one per cent cut in the base rate - taking it down to six per cent.

Alistair Darling has told MPs that the government is committed to doing all it can to support UK banks and that the ultimate responsibility rests with him.

Pressure is growing on the government for an unlimited savings guarantee to be introduced as economic turmoil swirls across Europe.

Less than 100,000 new homes will be built next year, half the amount needed to meet government targets.

German chancellor Angela Merkel has announced the German government will guarantee all private savings accounts, as the country's second largest mortgage lender struggles for survival.

Germany's second-largest mortgage lender, Hypo Real Estate, is on the brink of collapse after a bail-out deal to rescue it fell apart.

Europe's four largest economies will work together to support financial institutions - but without forming a joint bail-out fund their leaders have said.

President Bush has signed the economic bailout bill just hours after it was passed by the US congress but warned the country's economy continues to face "serious challenges".

Gordon Brown is among European Union leaders meeting in Paris today to discuss the current turmoil in the financial markets.

The Bank of England is expanding the range of collateral it will accept as security against loans made to banks.

The UK is set for a recession by the end of the year, according to early economic indicators.

Attention is again turning to the United States House of Representatives after senators approved a $700 billion economic rescue package.

Marks & Spencer like-for-like sales dropped 6.1 per cent over the last three months as the effects of rising food prices and a slowing economy hit the retailer.

The United States senate has approved a revised version of the Bush administration's $700 billion Wall Street bailout package.

France will push for European leaders to unveil a €300 billion (£237 billion) rescue package for financial institutions at a summit scheduled for this weekend, reports claim.

Manufacturers are facing the worst economic conditions in 17 years as demand fell sharply in September.

The failure of Congress to sign a $700 billion rescue package for Wall Street cost Americans on Main Street $1.1 trillion because of "pigheadedness and politicking", it has been claimed.

Senior Bush administration figures are today holding emergency talks to convince Congress to accept their $700 billion (£388 billion) Wall Street bailout package.

George Bush has pleaded with Congress to approve his administration's $700 billion (£388 billion) financial bailout package when a reshaped version is put before the House of Representatives again.

The FTSE 100 continued its decline following last night's surprise news that the US Congress had rejected a $700 billion (£380 billion) bailout scheme.

The Irish government is to guarantee the savings of depositors at the nation's top six banks.

The FTSE 100 continued its decline following last night's surprise news that the US Congress had rejected a $700 billion (£380 billion) bailout scheme.