WestLB received a last-minute lifeline Tuesday as Germany's Finance Ministry confirmed that an agreement had been reached to help the stricken lender. Lothar Mentel from Octopus Investments and CNBC's Silvia Wadhwa have analysis.

UK bank Lloyds launched the world's largest cash call Tuesday, at a 60% discount to Tuesday's closing price. CNBC's Carolina Cimenti has this report.

"Whoever wins the (UK general) election is going to have to shortly afterwards give some program for getting the public finances back into shape," Richard Lambert, director general of the CBI, told CNBC Monday.

Homeserve posted a 25% rise in first-half core revenue Tuesday and said it was confident of hitting its full-year target. CEO Richard Harpin told CNBC that customers are sticking with the home insurance group despite the downturn.

Shares in BSS Group rose Tuesday as the UK plumbing and heating firm posted a 23% fall in first-half adjusted pretax profit but maintained its dividend and said it was confident on the second half of the year. CEO Gavin Slark told CNBC the group's strategy has been to protect and gain market share during the downturn.

The UK needs to retain its open economy and attract new businesses, Andy Green, CEO of Logica, told CNBC Tuesday. Elissa Bayer from Charles Stanley joined the discussion.

The two major political parties in the UK, Labour and Conservatives, have a lot in common in terms of policy and they are both committed to investment, which is encouraging, Interserve CEO Adrian Ringrose told CNBC Monday.

UK inflation looks likely to spike up in the short term, but will be subdued over the longer term, according to the Bank of England Tuesday. Elissa Bayer from Charles Stanley, Andy Green, CEO of Logica, and Alan Clarke from BNP Paribas discuss the outlook for the UK economy.