Asset managers may have to undertake a "root and branch" reassessment of business models amid a wave of European regulation set to trigger "huge upheaval", warns State Street.

Asian markets rallied overnight after the Federal Reserve indicated it will not hike interest rates.

The UK economy grew by 0.5% in the first quarter of the year, down slightly on economists' estimates, the Office for National Statistics (ONS) said today.

The FTSE has extended yesterday's gains, adding 0.2% in early trading, as strong corporate earnings and upbeat economic data continue to power the index.

BP has lauched a $40bn (£24bn) lawsuit against Transocean, the owner of the Deepwater Horizon rig that exploded in the Gulf of Mexico last year.

The Monetary Policy Committee (MPC) was again divided six-three against a rate rise earlier this month, minutes from the April meeting reveal.

Iceland has said the UK will get back the money it paid out to customers when the Nordic country's banking system collapsed.

European stock markets sunk into negative territory on Tuesday as concerns over the global economic recovery and an unnerving update on Japan's radiation crisis hit investor sentiment.

The Bank of England today held interest rates at 0.5% as fears over a sluggish economic recovery outweighed inflation concerns.

Adam Posen, the Bank of England policymaker, has predicted inflaton will fall to 1.5% by mid-2012 as the government's austerity drive and a weak economy will curb consumer spending.