Economics

Leading bankers are claiming to be so hamstrung by bonus restrictions they are threatening to relocate overseas.

Markets are braced for more gloomy news on the western economies with US data expected to confirm a poor outlook for jobs and shaky confidence.

BP is driving a midday rally in London shares after the oil giant's attempts to stop the oil leak proved successful, although banking stocks continue to slide.

BP is gearing up to unveil a $40bn (£26.5bn) defence strategy in the teeth of growing speculation US predators have been given the green light by Washington to swoop on the British company.

HSBC, Barclays and RBS are among 15 Wall Street banks accused by a US investment firm of mis-selling a total of $2.4bn (£1.6bn) in mortgage-backed securities.

Confidence amongst UK finance chiefs has hit a one-year low on the back of austerity measures pushed through in the Budget and mounting fears of a slow-down in global growth.

Besieged BP's share price soared 9% this morning as markets weighed up its value as a takeover target as the current oil spill debacle subsides.

BP has denied reports from Russia that Tony Hayward is set to stand down.

The financial services industry grew at the fastest rate since Northern Rock collapsed in the last three months - but the "modest pick-up" in activity was lower than expected.

The FTSE 100 has opened in positive territory as investors react with relief to a watered down US financial services reform bill.