Inflation will stay "stubbornly high" this year, pressuring the Bank of England to up interest rates from the second quarter, according to the Confederation of British Industry.
The CBI predicts the UK economy will grow at a slightly faster rate than expected in 2010, but growth will be more ‘sluggish' than previously thought in 2011 thanks to the emergency budget.
The Office of Fair Trading (OFT) has announced a probe into parts of the investment banking industry.
With the general election behind us and the economic recovery continuing, the outlook for UK equities is one of reasonable growth.
British factory production surged ahead at a rate five times faster than expected in March as the weak pound helped revitalise Britain's export trade.
The Government is understood to be considering plans to offload its stakes in Lloyds Banking Group and Royal Bank of Scotland just weeks after the general election.
UBS is in talks with the Beijing municipal government on setting up a renminbi-denominated private equity fund as the Swiss bank looks to expand in China.
Investment management companies saw out 2009 on a high with sustained profitability and increased confidence, a survey suggests.