By Simone Meier Feb. 15 (Bloomberg) -- Europe's economy shrank less than economists forecast in the fourth quarter as a better-than- predicted performance in Germany and France helped mitigate the region's first contraction since 2009.

The UK economy will "zigzag" this year, dipping in and out of growth, Bank of England chief Sir Mervyn King has said. The Bank's quarterly inflation report predicts inflation will continue to fall in the coming months.

New figures from the Office for National Statistics show the number of people out of work increased by 48000 in the three months to December.

Ben Chu is The Independent's Economics Editor. Previously he was the newspaper's chief leader writer. Leila is watching her baby intently, as his mouth moves trying to swallow the small blob of yellow p... Ambulances were called and three drunk ...

Leila is watching her baby intently, as his mouth moves trying to swallow the small blob of yellow p... Ambulances were called and three drunk teenagers were brought to my care.

Italy, Spain and Portugal are among a number of eurozone nations to have had their credit ratings lowered by ratings agency Moody's.

By Alistair Gray, Insurance Correspondent Royal Bank of Scotland's insurance arm has taken a step closer to an expected multi-billion pound flotation by dropping the name of its parent in a rebranding exercise.

Sports Direct has raised the prospect of re-instating its dividend after the retailer defied tough trading conditions over the festive season to post a 9.1pc sales rise.