Greece is set to receive a further €8bn of bailout cash from the troika - the EU, IMF, and ECB - in early November, buying it more time to avoid a hard default.

UK gilts extended declines as the Bank of England refused to buy bonds maturing in 2017 in Monday's auction, after traders aggressively drove up prices.

Threadneedle's executive chairman Simon Davies is set to retire from the group in June 2012.

SOLVING THE DEBT CRISIS

B(L)ANK CHEQUES

Bank shares have deepened losses after the downgrade of 12 UK financial institutions by Moody's, pushing the FTSE 100 into negative territory.

The European Central Bank has held rates at 1.5% despite mounting pressure on policymakers to resolve the sovereign debt crisis.

US markets dropped on the opening bell as investors braced for three sets of unemployment data including Friday's September non-farm payroll figures.

China has warned of a possible trade war as the US Senate voted in favour of debating laws which could pressure it to let the renminbi rise.

Former Martin Currie European manager Eric Woehrling is preparing to set up an Edinburgh-based equity boutique, with a European long/short fund as its first offering.