Europe

(Updated 11:15am) The FTSE 100 is trading more than 1% higher in mid-morning trading on Tuesday afte closing 2011 down 5.5% for the year.

A draft prospectus providing details of securities which may be created by the EFSF has acknowledged the breakup of the euro in its list of risk factors.

The eurozone faces a "mild" recession in the first half of next year, restricting full-year economic growth in the region to just 0.1%, according to Ernst & Young.

Heavy selling of the euro saw it tumble through the $1.30 mark versus the US dollar late this morning to its lowest level since early January.

The German central bank told me in no uncertain terms last week it was not printing Deutsche Marks, despite growing speculation - and a number of sources - pointing to the contrary.

Shares tumbled across Europe yesterday and in the US overnight after ratings agency Moody's disclosed fresh concerns over the European sovereign debt crisis and reiterated it would review the ratings of all 27 EU nations in the first quarter of next year....

Skerritts' head of investments Andrew Merricks asks if there are any ‘safe' investments out there as the eurozone hurtles towards a messy denouement.

Standard & Poor's has said it may downgrade the European Union's AAA rating and make further cuts to eurozone banks' credit ratings if a review of eurozone countries prompts mass sovereign downgrades.

Economic growth in the UK will be subdued and output will fail to reach 2008 levels until 2013, according to the National Institute for Economic and Social Research (NIESR).

Pressure was building on David Cameron last night as senior backbench Tory MPs called for the Prime Minister to approve a referendum on a new euro treaty and to wring "clear gains" from a European summit scheduled for Friday.