A former head of the Financial Services Authority and a founding member of the Bank of England's Monetary Policy Committee are recognised in the New Year Honours.

The number of house purchases by first-time buyers is up 12% this year, with about 216,000 people stepping on the property ladder, reports the Halifax.

US President Barack Obama says he is "modestly optimistic" that a deal to avoid the "fiscal cliff" is possible, after a last-ditch White House meeting.