The pound surged against the euro today amid jitters over Catalonia's independence and news that EU member states will start preparing for the second phase of Brexit talks.

Sterling was wallowing at eight month lows against the euro, as investors continued to trade on news that the European Central Bank may start weighing plans to cut its stimulus programme.

A run of disappointing drug trials at Roche has left analysts suggesting the view from its new 41-storey office building in Basel, Switzerland, has become more clouded, with little chance of management now upgrading its growth forecast next week, when it reports first-half earnings.

The UK’s top share index fell yesterday, depressed by a slide in oil stocks among others. The Ftse 100 index fell 0.6%. A brief recovery was brought to an end in afternoon trading when Bank of England governor Mark Carney said the bank would debate an interest rate increase in the coming months.

Shares in Shire rose to its highest level in 10 months in London after the US Food and Drug Administration approved its Xiidra drops to treat dry-eye disease, the first treatment for the ailment to be approved in more than a decade.

Dublin-based drugmaker Shire has clinched its six-month pursuit of Baxalta International with an agreed $32 billion (€29.4bn) cash and stock offer, catapulting it to a leading position in treating rare diseases.

Baxalta jumped to a four-and-a-half-month high yesterday on reports that rival drug maker Shire — the US firm formally based in Ireland — is in advanced talks to acquire it.

Pfizer is negotiating a 2%-3% break-up fee with Allergan that would be in line with most deals, according to sources, a sign of confidence such a merger could overcome regulatory hurdles.

Pharmaceutical giant Shire, which is headquartered in Ireland for tax purposes, has agreed to buy US rare disease specialist Dyax Corp for about $5.9bn (€5.35bn), and potentially up to $6.5bn, while still pursuing a five- times larger unsolicited bid for biopharma firm Baxalta Inc.

The pound rose sharply yesterday after new forecasts from the Bank of England appeared to bring forward the likely timing of an interest rate hike.

Big Four accountancy firm PwC was accused of promoting “tax avoidance on an industrial scale” to numerous multinational firms in a scathing report by MPs today.

The FTSE 100 Index climbed higher yesterday thanks to a revival in supermarket stocks as official figures showing inflation at a 14-year low also boosted sentiment.

AstraZeneca, which saw off a €95bn bid from Pfizer in May, said quarterly results showed its stand-alone strength, while recent US tax changes removed much of the case for a new takeover attempt.

Chiquita shareholders got yellow and chose green.

Shire CEO Flemming Ornskov was preparing for a meeting in Chicago on the integration of his company with AbbVie when he got the news that AbbVie was reconsidering the $52bn (€40bn) takeover.

AbbVie and Shire agreed to terminate what would have been the biggest US tax inversion after AbbVie pulled its support for the deal in the wake of proposed changes to US rules governing such transactions.

US drugmaker AbbVie has pulled the plug on its plan to buy Dublin-based Shire, recommending shareholders vote against the planned $55bn (€42.96bn) takeover after new US tax rules.

Chicago-based AbbVie has said it is reconsidering its $55bn (€43.4bn) takeover of Shire weeks after the US government moved to curb deals designed to reduce tax, wiping $13bn off the London-listed firm’s stock price.

Nearly 18,500 mergers and acquisitions (M&A) worth $1.7trn (€1.28trn) have been completed this year.

AbbVie, the drugmaker buying Dublin-based Shire plc to lower its tax rate, reported profit that beat analysts’ estimates on strong sales of the arthritis drug, Humira.

US biopharmaceutical firm, AbbVie has agreed to buy rival group, Shire for almost $55bn (€41bn), becoming the latest American healthcare company to shift its tax residence abroad in a record surge in industry deals.

AbbVie Inc moved a step closer to buying Shire Plc after the Dublin-based company said it is willing to back a fifth offer of £31.4bn (€39.4bn) just four days before the deadline to strike a deal.

Salix Pharmaceuticals has agreed to buy the patents to some drugs for gastrointestinal diseases from Cosmo Pharmaceuticals for about $2.7bn (€1.98bn) in stock in a deal that will allow the US company to move to Ireland and lower its tax bill.

AbbVie has said its $46.5bn (€34.1bn) bid for Shire plc offers "compelling" value for Shire shareholders and that it won’t rule out going hostile in its drive to acquire the drugmaker.

Irish-headquartered biopharma company, Shire flagged the promise of existing and new drugs yesterday as evidence that US giant AbbVie’s $46bn offer undervalued the company — the latest British firm to be targeted by a US group seeking lower taxes.

Shares in Shire hit a record high yesterday on expectations of a takeover as dealmaking sweeps the drugs sector, after Reuters reported the group had hired investment bank Citi as a defence adviser.

The HSE paid out almost €2.5m on drugs to counter ADHD last year, according to new figures.

Shares in commodities giant Glencore fell nearly 4% today amid fears a mega-merger with Xstrata will collapse.

European markets slid more than 1% today as investors steered clear of riskier assets ahead of a key EU summit this week.

The rebound for London shares continued today after China’s first cut in interest rates in four years triggered a surge for mining shares.

Shire Plc reported a 20% increase in first-quarter earnings per share as doctors prescribed more Vyvanse, a pill for ADHD that it expects will bring in more than $1bn (€762m) this year.

An agreement to boost the eurozone bailout fund lifted London’s leading shares index today and helped it finish the first quarter of 2012 with gains of 3.5%.

A drop in oil prices triggered by a joint US and UK move to release strategic reserves pulled energy stocks and the wider FTSE 100 Index into the red today.

Rising oil prices and optimism that Greece will be saved from a calamitous default helped drive London’s leading shares index closer to the 6000 mark today.

A near-$30 billion (€22.8bn) bid for Shire could emerge as the standout deal in the European pharmaceutical sector this year, a highlight for bankers in a market otherwise likely to be dominated by bolt-on acquisitions.

Investors started 2012 with a burst of optimism today as upbeat manufacturing data from all corners of the world triggered a rally on London’s top shares index.

A year to forget for investors ended today with London’s benchmark index 5.5% lower than its starting point in January.

UK banking stocks lost ground today after British business secretary Vince Cable said proposals for a radical industry shake-up would be accepted in full.

London’s leading shares index took a fresh beating today as continued deadlock over America’s budget deficit added to worries about European debt.

The London market made nervous gains today as traders waited for the details of a eurozone rescue plan set to be hammered out a crunch meeting of politicians.

BSkyB’s on-off takeover saga and renewed fears over the spread of Europe’s debt crisis led to a dramatic session in the City today.

Fashion house Burberry was the top faller in the FTSE 100 Index today as its stellar annual results were overshadowed by a bout of profit-taking.