Our business predictions for 2011 - and how our tips for 2010 fared

1 The Bank of England raises interest rates by 0.25 per cent in the first quarter.

2 The euro survives despite pressure for a two-tier currency and a whiff of rebellion in Germany for a return to the D-mark.

3 Labour wins a majority in the Holyrood elections.

4 The FTSE-100 closes the year at 6700 as more Chinese companies gain a London listing.

5 Lloyds new management attempts to head off further demands for a break-up by putting further assets up for sale. Its options include Intelligent Finance and Birmingham Midshires.

6 Standard Life is involved in merger speculation.

7 Vince Cable, below, gets a new role in a Cabinet reshuffle.

8 BA-Iberia, the newly merged airline, announces a takeover in the second half of the year.

9 More building societies merge as the housing market continues to struggle.

10 Oil hits $115 a barrel by the third quarter.

2010 Predictions

1 National Australia Bank merges its Clydesdale and Yorkshire banks with RBS branches in England the Wales.

INCORRECT: NAB lodged an interest in the RBS branches but withdrew, apparently after learning it was outbid by Spanish group Santander.

2 A foreign bank buys a stake in RBS.

INCORRECT: Prospects for an early sale of the government's 84 per cent stake were curtailed by a government inquiry and talk of a public offer of shares, no earlier than 2012.

3 A new 20 per cent rate of VAT is introduced.

CORRECT: It was announced in the coalition government's emergency budget in June.

4 The FTSE-100 slumps in the spring but bounces back to end the year at 6200.

ALMOST CORRECT: The stock market plunged in the first week of May, General Election week, with the FTSE falling by 8 per cent, as it did again in the autumn. But despite a strong December, it fell short of the forecast.

5 Alan Johnson becomes leader of the Labour party as it swings left.

INCORRECT: The party did opt for a left wing candidate but Johnson chose not to stand, though some believe his time may yet come.

6 A Tory government plans to part-privatise the Royal Mail and runs into opposition.

CORRECT: The coalition unveiled a Postal Services Bill containing a plan to sell 90 per cent of Royal Mail. Union leaders said they would oppose the plan.

7 A mid-tier Scottish law firm collapses or merges as corporate finance work dries up.

INCORRECT: Morton Fraser announced plans to grow through merger and a number of law firms have struggled with the slowdown in corporate finance business, but none has collapsed.

8 At least two Scottish companies float on the London Stock Exchange.

CORRECT: It turned out to be a bumper year with EasyDate, EnQuest, Produce Investments and Scotgold Resources making it to market.

9 Rangers Football Club is sold.

CORRECT (probably): After one false start and without wishing to jump the gun it looks as if Scottish entrepreneur Craig Whyte will complete his acquisition.

10 Ivory Coast reaches the semi-final of the World Cup giving a boost to the South African economy.

INCORRECT: A win, a draw and a defeat was not enough to get beyond the initial group stage. Best-performing African nation was Ghana whose team made it to the quarter-finals. Economic benefits of the tournament are questionable. There were one-third fewer tourists than forecast and they spent a tenth of the amount spent by the government to host the event.

There was some boost to local businesses but foreign investment also fell short of targets. However, South Africans claim the World Cup boosted national pride, eased the impact of recession, and put the country on the world map.