Banker Davies to become minister

Mervyn Davies became Standard Chartered Bank's chairman in 2006

The chairman of Standard Chartered Bank Mervyn Davies is to be made a life peer and trade minister by Gordon Brown.

The BBC's Nick Robinson says he will effectively replace the ex-head of the Confederation of British Industry Digby Jones, who left in the last reshuffle.

Lord Jones was the minister of state for trade and investment at the Department for Business and Enterprise.

Mr Davies will be seen as adding bank experience to the government at a time of continuing economic difficulties.