The latest inflation figures, showing CPI reached 4% in January, has sparked speculation on higher interest rates and the impact on the UK economy.

JO Hambro Capital Management has soft-closed its UK Equity Income fund after it reached its £750m cap.

HOW WILL VAT HIKE AFFECT INFLATION?

A permanent €500bn (£420.3bn) bail-out fund has been set up to support countries in the eurozone.

The IMA has criticised the Association of British Insurers' (ABI) proposed changes to its Managed sectors, arguing the suggested names are "opaque" and inconsistent with RDR and TCF principles.

Ignis' Diamond Lee believes Asia will have a major inflation problem in the second half of the year, causing markets to become more risk averse.

Sebastian Lyon has warned volatility will increase on his £894m Trojan fund as higher inflation and falling wages impact the markets.

Smith & Williamson's £45m Global Gold & Resources fund was among the best-performing funds of 2010 thanks to its exposure to smaller companies and the soaring gold price.

Schroders' Richard Buxton believes the Bank of England will hold off on raising interest rates this year despite his forecast inflation could reach 5%.

The Indian equity market has fallen 18% and seen a $1.5bn outflow of foreign investment since the start of the year as inflation fears drive investors back to developed markets.