Markets here and in Britain are expected to rally this morning after European leaders reached agreement on a plan to inject state funds into banks...

The heads of the 15 Euro zone countries will guarantee all loans between banks until the end of next year.

Meanwhile, three of the UK's biggest banks are asking for extra help to survive the credit crunch - effectively leading to nationalisation.

The plan is also being studied in Washington.

US financier George Soros says the current US scheme won't work.

Back here at home...

Brian Cowen's said the EU agreement won't affect the terms of the Irish bank guarantee scheme...

The scheme was extended to some foreign-owned banks operating here after approval from the European Commission on Thursday.