Legg Mason's absolute return specialist Dipankar Shewaram has left the firm to pursue other opportunities.

ExxonMobil has formed an Arctic exploration partnership with Russian state oil company Rosneft, in a strategic coup over rival BP.

Business secretary Vince Cable said UK banking reforms will go ahead despite criticism from industry leaders the plans threaten the economic recovery.

The International Monetary Fund has slashed its growth forecast from 2.5% two months ago to 1.6%, according to Italian news agency ANSA.

JPM's Neil Gregson has called the bottom of the market for gold mining stocks, especially small caps, tipping them to pick up against bullion as investors look to add risk to their portfolios.

US IS NOT FACING ANOTHER 2008

Shares in Bank of America closed almost 10% higher overnight after Warren Buffett pledged to take a $5bn stake in the firm, which may have already netted him a $1.3bn profit.

All criminal charges against former IMF head Dominique Strauss-Kahn were dropped in a New York court on Tuesday, following accusations of a sexual attack on a hotel maid.

Credit rating agency Moody's has downgraded Japan's sovereign debt rating by one notch, saying weak political leadership has hampered growth.

Dramatic stock market movements and disappointing economic data have caused leading economists to downgrade their growth forecasts, but they are still not predicting a recession, the FT reports.