Roundup: UK growth falling behind leading economies

Britain has underperformed all the world's leading economies over the past year except tsunami-hit Japan, figures from the Organisation for Economic Co-operation and Development (OECD) show.

UK growth in the three months to June of 0.2% was equal to growth rate across the OECD region as a whole, as well as the eurozone. Telegraph MORE

Bank shares dived on Monday despite a widespread rally across Europe's major stock markets as questions were raised about their ability to fund themselves.

Shares in RBS slid below 20p for the first time since March 2009, making it the biggest faller in the FTSE 100 despite the blue-chip index closing up 1.1%. Barclays and Lloyds also saw their shares sink to levels not seen since early 2009, as bank shares made up four of the 10 largest fallers among FTSE 100 companies.

RBS shares closed at 19.67p, down 5.3%, while Lloyds fell 2.9% to 27.56p and Barclays closed at 146¼p, down 2.8%. Shares in Standard Chartered fell 2.5% to £13.29. Only HSBC avoided the losses, but still ended the day flat at 511p.

The falls came as investors continued to worry about funding conditions for European banks. Telegraph MORE

Swiss banking giant UBS today announced plans to shed 3,500 jobs in order to make savings of some 2 billion Swiss francs (€1.8 billion). UBS said it aims to make the personnel cuts 'through redundancies as well as natural attrition'.

The news comes after an announcement last month by Credit Suisse, second only to UBS in Switzerland, of 2,000 job cuts after a 52% plunge in its second quarter profit due to Europe's debt crisis and global economic fears. FT MORE

Sir Richard Branson's Necker Island compound in the British Virgin Islands was hit by lightning sparked by Hurricane Irene on Monday night, destroying the main house and sending guests, including Kate Winslet, scrambling for safety. FT MORE