Jim O'Neill, the chairman of Goldman Sachs Asset Management (GSAM), would ditch inflation targeting if he replaced Mervyn King as the Bank of England governor as the measure has been "insufficient" over the past decade.

Franklin Templeton's Michael Hasenstab has said there will be no Armageddon in the eurozone, and urged investors to take advantage of short-term market inefficiencies.

JPMorgan Chase & Co has sold off around 70% of the ‘London Whale' position which caused $2bn of trading losses for the investment bank, according to reports.

China is looking at relaxing rules for foreign investment in its financial markets in a bid to stimulate its domestic economy.

The Federal Reserve announced plans to extend Operation Twist by $267bn as it cut its growth forecast for the US economy from 2.9% to 2.4% in 2012.

JO Hambro Capital Management is to launch a Global Opportunities fund as its UK Opportunities fund, run by the same managers, fast approaches its £1bn capacity limit.

Renowned energy investor Tim Guinness has forecast the price of US natural gas could increase by 300% in the next five years as supply is choked off and demand grows for gas ahead of coal.

WEALTH MANAGERS

Steve Bailey and Jan Luthman have added European food giant Nestlé to the £242m Liontrust Macro Equity Income fund as part of a wider play on consumer staples.

Kames Capital's Phil Milburn and Melanie Mitchell are poised to add to European holdings in their High Yield Bond fund but are waiting for two specific catalysts before taking the plunge.