The FTSE dropped more than 3% in early trading on Friday, following US and Asian markets sharply lower as the global sell-off continues.

Sharp falls in bank and mining stocks have dragged the FTSE 100 down a further 3.4% today as global markets continued to struggle.

Adrian Frost, manager of the £3.9bn Artemis Income fund, said BP and other major companies should make further asset sales in order to improve their growth prospects.

Aberdeen's multi-manager team has cut Blackrock's UK Absolute Alpha fund from the Diversified Alpha portfolio after overhauling the underperforming fund.

GLG Partners is to close three of its bond funds after manager Gareth Isaac was poached by rival Schroders.

Spanish and Italian government borrowing costs have hit eurozone-era highs as investors continue to worry over the state of their respective economies.

Yields on the 10-year gilt have fallen to an all-time low below 2.77% as recessionary fears resurface across the globe.

US markets have reversed earlier gains after manufacturing data raised further doubts about the strength of the economic recovery.

QUALITY NOT QUANTITY

The delay in the US government's efforts to raise its debt ceiling now means it holds less cash on its balance sheet than tech giant Apple.