The US Federal Reserve has stepped in to accelerate the economic recovery, saying that it would expand its holdings of mortgage-backed securities, and potentially undertake other new policies, until unemployment drops sufficiently or inflation rises too fast.

We have expert assessment of that move from Valentijn van Nieuwenhuijzen with ING Investment Management.

Also in the programme, merger talks between EADS and BAE, which could lead to the creation of a new industry giant and more disappointment over Italy’s economic growth.