Investors in the British banking sector were spared more misery today after Royal Bank of Scotland posted better-than-expected losses of £3.6bn (4.08bn) for 2009.

British retailers have a “very tough” 12 months in store despite reporting robust Christmas sales figures, the head of the industry’s trade body has warned.

London's blue chip share index staged a late session rally today as optimism on Wall Street added to investor cheer over a potential takeover of Friends Provident.

Hopes of consolidation in the insurance sector meant shares in Friends Provident and other leading players posted strong gains today.

The fastest slide in UK economic output since 1979 put sterling under pressure today but failed to derail London shares in a strong end to the week.

Financial stocks surged today after the Government unveiled details of its scheme to insure toxic debts worth hundreds of billions of pounds.

The FTSE 100 Index held on to its New Year rally today as retail cheer helped offset more bad news for the economy.

Better-than-feared trading updates from retailers Next and Debenhams helped steer the FTSE 100 Index towards a sixth straight session of gains today.