BBC News with Gaenor Howells

Banking shares have fallen in a number of markets amid continuing fears about the impact of the eurozone debt crisis. In London, shares in two partly state-owned banks fell over 7%. Across the Atlantic, shares in Bank of America lost nearly 5%, and a large American investment fund, MF Global, filed for bankruptcy protection. Michelle Fleury reports from New York.

The collapse of MF Global isn't seen as a serious risk to the financial system so much as a cautionary tale. MF Global's problems stemmed from its $6.3bn investment in sovereign bonds issued by European countries, including Portugal, Italy and Spain. The medium-sized broker didn't have enough capital if its bet on Europe turned bad. Given that so many people think that's a real possibility, investors took fright. Last week, shares in MF Global fell more than 60% after the financial firm reported a big loss.

Earlier, a report by the International Labour Organisation warned that the global economy was on the verge of what it called a new and deeper jobs recession.

The Greek Prime Minister George Papandreou says Greece will hold a referendum on the bailout deal agreed at the European summit last week. Mr Papandreou gave no details of the proposed referendum in an address to Socialist MPs, but said he'd also seek a vote of confidence in the Greek parliament. The deal agreed by eurozone members was designed to cut Greece's debt by about $140bn.