From 1925, the Bank of England had kept interest rates high to keep the pound at a fixed parity to gold

Britain's debt-fuelled economy remains threatened by recession and the pound mired by trouble despite the government of new Prime Minister Liz Truss performing a swift tax U-turn.

With the U-turn, the stakes have soared for Truss as she prepares to close the party conference with a keynote speech on Wednesday.

Global equities staged a partial comeback on Wednesday -- with Wall Street stocks surging around 2% -- as the Bank of England said it would step in to the bond market in an attempt to dampen investors' fears of contagion across the financial system.

British finance minister Kwasi Kwarteng sought to reassure investment bank executives on Wednesday the government had sound fiscal plans, in the face of a meltdown in British assets.

Wall Street giant JPMorgan is planning to double the size of its workforce at fledgling British retail bank Chase to at least 2,000 within two years, the CEO of the venture told Reuters, despite losses and some investor scepticism.

The International Monetary Fund on Tuesday took aim at new British financial plans that have roiled markets, warning that "large and untargeted fiscal packages" would likely increase inequality in Britain and could undermine monetary policy.

The Bank of England is likely to deliver a "significant policy response" to finance minister Kwasi Kwarteng's huge tax cuts but it should wait until its next scheduled meeting in November before making its move, BoE Chief Economist Huw Pill said.

Sterling plunged after the cuts were announced on Friday and fell again on Monday to a record low.

Keir Starmer, leader of Britain's Labour Party, on Sunday pledged to reverse the abolition of the top rate of income tax, saying tax cuts for the wealthy wouldn't create economic growth as he made a pitch for power at his party's annual conference.

Britain on Friday axed a cap on bankers' bonuses aimed at boosting London's finance sector after Brexit, raising anger amid a cost-of-living crisis.

Britain on Wednesday announced a six-month plan to pay about half of energy bills for businesses.

Switzerland exited the era of negative interest rates on Thursday when its central bank joined others around the world in tightening monetary policy more aggressively to combat resurgent inflation.

The Federal Reserve is expected on Wednesday to lift interest rates by three-quarters of a percentage point for a third straight time and signal how much further and how fast borrowing costs may need to rise to tame a potentially corrosive outbreak of inflation.

US Fed set to raise interest rates as recession fears mount

Europe's problems in sourcing oil and gas this winter after a dispute with Russia may be exacerbated by a new crisis in the market where prices are already red-hot: a liquidity crunch that could send them spiralling higher still.

British politics returns to centre stage on Tuesday after the funeral of Queen Elizabeth, with Prime Minister Liz Truss signalling her priorities by flying to her first major summit and rushing out measures to try to avert an economic slump.

Volkswagen's supervisory board is due to meet on Sunday to move forward with the IPO of its Porsche brand, which will comprise 911 million shares in a nod to its most famous model, two sources close to matter said.

JPMorgan Chase and Bank of America, the two largest U.S. banks by assets, expressed caution about job cuts in contrast with Goldman Sachs, where hundreds of layoffs could start as early this month.

Bank of America Corp created a new group in its global wealth and investment management division to focus on lending to rich clients, the company told Reuters on Monday.

When the Shannon family announced the closure of their garden centre just off London's busy South Circular road after 33 years of trading this month, their message to customers sought to explain their difficult decision.

Britain's surging inflation could slow if new Prime Minister Liz Truss helps households and businesses cope with rocketing energy costs, but it is too soon to say what that will mean for interest rates, the BoE's chief economist said.

Rio Tinto on Thursday reached an in-principle agreement to buy the rest of Canadian firm Turquoise Hill Resources for $3.3 billion, which gives the global miner direct ownership of a giant copper mine in Mongolia.

Preliminary steps to list Porsche on the stock market are expected in the coming days, six people familiar with the matter said.

Stock markets wobbled Friday ahead of a speech by Federal Reserve boss Jerome Powell that is expected to reiterate his plan to ramp up US interest rates to fight soaring inflation.

Share markets pushed higher and Europe's bond markets and euro stole a breather from energy-price driven sell-offs on Thursday, as investors waited to hear the latest reaction of the world's top central bankers to soaring inflation.

Climate activists will stage a series of colorful protests at the Federal Reserve's annual Jackson Hole central banking conference that starts Thursday, intent on pressing the Fed to address climate change and move the U.S.

The Bank of England has raised its benchmark rate from 0.1% to 1.75%, whereas until the financial crisis of 2008 it ranged from 5% to 15%.

Another dramatic spike in natural gas prices appears to have ended any hopes that Europe's inflation battle is set to ease, with financial markets now bracing for higher prices, a faster pace of interest rate hikes and a deeper economic downturn.

A windfall of foreign funds arriving in Turkey and sustained interest in a state-backed deposit scheme have brought some relief for President Tayyip Erdogan's economic plan less than a year before tight elections.