Charles Prince, the Chairman and Chief Executive of Citigroup, has announced his resignation after a poor financial quarter, primarily resulting from the US sub-prime mortgage crisis.

The US housing market continues its downward spiral as new figures show a persistent fall in house prices and sales at a record low, with the troubled sub-prime mortgage market increasing barriers to lending.

In his speech to the 2007 Conservative Party conference, shadow chancellor George Osbourne announced a series of new economic plans ahead of a potential general election, with changes to the structure of stamp duty and inheritance tax.

Today the Chancellor of the Exchequer, Alistair Darling, announced that the UK government will guarantee all deposits at the bank in an effort to calm panic over Northern Rock's financial difficulties.