Investors are the most bearish on sterling since the UK voted to leave the EU almost two-and-a-half-years ago, as markets wait for the possibility of a no-confidence vote on prime minister Theresa May.

Italian assets were pummeled again yesterday on mounting concern over the populist coalition’s fiscal plans, with the moves rippling across European debt markets.

As armed police take to the streets of London, Alex Morales and John Ainger ask if the city has become safer or more dangerous