Osborne austerity pledge

Chancellor George Osborne has insisted that austerity measures must continue after being criticised by MPs following the downgrading of Britain's credit rating. Shadow chancellor Ed Balls said the move was 'humiliating'.

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FTSE 100 rises by 0.5% following UK downgrade

The FTSE 100 index has risen slightly this morning despite the decision by Moody's to downgrade the UK from its elite triple A rating.

There were fears that agency's decision to cut the UK's rating to Aa1 would hit its financial markets.

Shortly after markets opened in London this morning the FTSE 100 rose 0.5 percent.

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