Europe

GREEK ELECTIONS

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.

Moody's has downgraded Spain's credit rating by three notches to Baa3 from A3, just above junk status, and placed it on review for further possible downgrades.

EUROPE

Barclays' chief executive officer, Bob Diamond, described the underpinnings of the European economy as ‘very very strong' and said he is confident the euro region will survive.

Jim Rogers, the chairman of Rogers Holdings, has described the bailout of the Spanish banking sector as "absurd economics" in a scathing attack on the European Union's approach to the crisis.

FUND MANAGER FOCUS

European ministers' decision to agree a bailout for Spain's banking sector at the weekend has boosted markets, but managers remain cautious on the the extent to which it will solve the eurozone's long-term problems.

Europe's major markets climbed on the first day of trading after Spain was granted a €100bn bailout for its banking sector over the weekend.

Marlborough's top performing small-cap manager Giles Hargreave has reduced his cash weighting from 10% to 5% to snap up shares trading at distressed valuations.