Shares in European financials have dropped in late trading as the latest European Banking Authority stress tests said the industry must raise €115bn in capital by June 2012.

Threadneedle's head of global equities Jeremy Podger has left the company to join Fidelity and run its £1.5bn Global Special Situations fund.

Standard & Poor's has said it may downgrade the European Union's AAA rating and make further cuts to eurozone banks' credit ratings if a review of eurozone countries prompts mass sovereign downgrades.

The FTSE 100 is down 1.2% and US markets have also opened lower as investors' hopes for a positive outcome from Friday's EU summit begin to dwindle.

Standard & Poor's has warned it may downgrade the eurozone bailout fund's AAA-rating once its review of eurozone countries' own ratings is complete.

Tom Dobell, manager of the £7.2bn M&G Recovery fund has rejigged his portfolio extensively since the financial crisis to take advantage of opportunities as they emerge.

The S&P 500 has risen 1.7%, with European equity markets also holding onto gains after German Chancellor Angela Merkel and French President Nicolas Sarkozy reached accord on the debt crisis.

Skandia's portfolio manager Lee Freeman-Shor has swapped Barings' James Buckley for former favourite Dirk Enderlein on the Skandia European Best Ideas fund.

Ashcourt Rowan chief executive Jonathan Polin has purchased 200,000 shares in the business as the company lists on AIM.

Pre-tax profit at Aberdeen Asset Management rose by 44% in the 12 months to the end of September even as net new business dropped by £1.6bn over the same period.