The UK has sold £700m of long-dated index-linked gilts for a negative real yield of 0.116%, the lowest level ever recorded.

The Swiss central bank has vowed to defend its floor of 1.20 Swiss francs to the euro as it seeks a replacement for departing governor Philipp Hildebrand.

Swiss National Bank chairman Philipp Hildebrand has resigned with immediate effect in light of a controversial currency trade made by his wife last August.

Falling business volumes and income meant asset managers saw profits drop for the first time since the second quarter of 2009 in the final three months of last year.

THE EURO

The board of Anthony Bolton's Fidelity China Special Situations fund has bought back a further 750,000 shares in a bid to narrow its discount.

Billionaire investor Warren Buffett will sing and play guitar on Chinese state television as part of the country's new year celebrations.

The FTSE 100 has extended losses as concerns over eurozone banks' need for more capital hit sentiment across the continent.

Iceland's finance minister said the country is still committed to adopting the euro despite fears over the stability of the single currency.

THE NEW RISKS IN 2012