Suffolk County Council has agreed a multimillion pound deal with the private sector to take over its care homes amid fresh calls for financial regulation to protect elderly residents and the taxpayer.

Spain won more breathing space from international investors, as it escaped having its debt cut to junk by a leading credit rating agency yesterday.

Rising speculation that Spain will soon ask for outside help to keep a lid on its borrowing costs has helped ease the pressure on the country in financial markets.

Germany's economic might showed worrying signs of wilting yesterday as the country reported the biggest collapse in private-sector output in more than three years.

Germany's economic might showed worrying signs of wilting in the face of Europe's debt crisis yesterday after the biggest collapse for the nation's private sector in more than three years.

Italy's credit rating cut by Moody's

Italy passed a tough market test today as its three-year borrowing costs fell well below 5 per cent at an auction hours after Moody's cut the country's rating to two notches above junk status.

A leading credit ratings agency today downgraded Barclays’ outlook to negative in the wake of Bob Diamond's resignation and continuing turmoil at the bank.

The British arm of Spanish banking giant Santander yesterdayday suffered a blow as it faced a downgrade by a leading credit-ratings agency.

US Outlook: Arbitrary! Backward looking! Completely unwarranted! Complaining by the banks downgraded by Moody's started the second the rating agency's actions hit the wire late on Thursday night. Citigroup sounded especially aggrieved at the two-notch cut to its credit rating, but all the affected institutions rushed out statements to assert that they have never been safer.

Some of the world's biggest banks – including Barclays, HSBC and Royal Bank of Scotland – had their credit ratings downgraded last night as a result of the eurozone crisis.

Some of Britain's biggest banks are reportedly facing credit rating cuts as early as tonight in a move which will stretch lenders' already taut finances.

A Budget-day borrowing blow for Chancellor George Osborne yesterday underlined the scale of his deficit-cutting task despite slightly better news on growth from his independent forecaster.