So begin five days of meetings to try to salvage the continent's economies

Full marks to David Cameron and Sir Mervyn King who avoided what might have been an embarrassing clash yesterday. The Prime Minister was originally set to make his latest statement on the riots at 10.30am, just as the Governor of the Bank of England was cutting his forecasts for economic growth. That might have looked as if the Government was trying to bury the bad news and the PM's office sensibly put his briefing back by half an hour.

The US avoided a feared and catastrophic default on the American debt, as lawmakers on today passed a measure that ties an agreement to raise the government's capacity to borrow to steep cuts in government spending.

The stakes are still rising in a game of political chicken that now threatens the immediate future of the global economy, as President Barack Obama continues attempts to negotiate a deal to raise the US government's debt limit.

President Barack Obama insisted yesterday he was prepared to make "tough choices" for a sweeping deficit-reduction deal to avert a US default, despite being warned by Democrats not to make too many concessions.

President Barack Obama insisted he was prepared to make "tough choices" for a sweeping deficit-reduction deal to avert a US default, despite being warned by Democrats not to make too many concessions.

Timothy Geithner, the US Treasury Secretary, may leave office later this year, it was reported yesterday.

French Finance Minister Christine Lagarde is poised to become the next leader of the scandal-rocked International Monetary Fund, with a major endorsement from the Obama administration.

Outlook: When more than half the economy depends on two drivers, it's difficult to see how there can be growth if those two drivers are weakening

International Studies

After months of hand-wringing, the US Government has reached its debt limit, forcing lawmakers to embark on a series of emergency measures to prevent public finances from going into immediate default.

Alan Miller is a widely respected fund manager in the City, but is probably best known beyond the Square Mile for his exceptionally messy divorce from his wife Melissa – she got £5m in a judgment that he appealed all the way to the House of Lords before losing. It's good to see the episode hasn't put Miller off women. Interviewed in the latest issue of Spear's magazine, Miller reveals he has only two personal speed dial numbers on his phone: "The two most important women in my life – my [new] wife and my mum."

Congress will have to raise the country's debt limit, and may need to do so before a deal on future budget deficits is agreed, the US Treasury Secretary Timothy Geithner has said.