There will be a surge of M&A activity in the US this year as the economic recovery gathers pace, says PSigma's James Abate.

RCM, a subsidiary of Allianz Global Investors, has appointed Andres Allende as an Asian specialist in its global emerging markets team.

Skandia has added international asset manager Danske Capital to its European Best Ideas fund.

Global real estate investment trusts trading on huge discounts are offering value but liquidity remains low, said the managers of First State's Global Property Securities fund.

Sentiment towards out-of-favour Japan is beginning to turn, with the market rising 11% since October, said Sarah Whitley, manager of the £168m Baillie Gifford Japan trust.

There is a lack of appetite amongst European investors for bond funds across the continent after a net withdrawal of €4.6bn in November, according to Lipper's latest monthly snapshot.

The FTSE fell back from yesterday's 31-month closing high in early trading Thursday, despite strong global gains overnight following a successful bond sale in Portugal.

Investec's joint head of fixed income John Stopford says developed market sovereign debt, the search for yield, and inflation will be the three dominant themes this year.

Ten-year Portuguese bond yields have reached a new high of 7.16%, driven by speculation the country will ask the EU for a bailout.

Threadneedle has appointed former Goldman Sachs executive director Irina Miklavchich as fund manager of its £129m Global Emerging Markets Equity fund.