Fatima Luis has invested into the energy services sector for the first time in at least 12 months on a positive outlook for oil.

Thames River's multi-managers have been cutting exposure to ‘bubbly' Asia in favour of Europe as they tidy up the portfolios inherited from F&C.

Fund managers cannot agree on whether stagflation is the next threat to the UK recovery and are adopting radically different strategies to protect portfolios in a higher inflation, low growth environment.

The US government needs to make a decision on whether to raise its debt limit to fend off rating agencies in the light of Japan's downgrade, according to OMAM's head of fixed income Stewart Cowley.

FUND MANAGER FOCUS

PIMCO bond guru Bill Gross has warned the debate on the US debt limit between Congress and Barack Obama's administration will cause treasuries to fall.

A contraction in GDP figures yesterday proves the UK recovery will be "choppy", says the Bank of England's Mervyn King who urges households to face up to austerity.

Fund managers are split on what the unexpected contraction in UK growth means for the future of the economic recovery.

UK GDP contracted by 0.5% in the last three months of 2010, shocking economists who had predicted growth of between 0.2% and 0.6% and sending sterling into freefall.

The International Monetary Fund has revised its global growth forecast upwards to 4.4%, as the UK is expected to report a slowdown in its recovery later this morning.