Europe

The UK's prized triple-A credit rating was under threat last night after US ratings agency Moody's put it on negative outlook, citing pressures from the eurozone.

EMs

Owning gilts has made the single largest contribution to recent performance of the £761m Miton Special Situations fund, and there is more money to be made in the asset class, said manager Martin Gray.

Eurozone finance ministers have rejected a reported €3.3bn package of Greek budget cuts, dashing hopes the country will secure more bailout cash and avoid default.

ON EUROPE

Equities are likely to post gains in 2012 whatever the outcome of the sovereign debt crisis in Europe, according to Richard Peirson, manager of the £347m AXA Framlington Managed Balanced fund.

Barings' multi-asset team has bought £350m in Italian government bonds in the expectation European banks will use the ECB's Long Term Recovery Organisation (LTRO) to buy government debt.

The euro needs to see a sharp fall of at least 30%, bringing it into line with the US dollar, or else the eurozone is "doomed", Nouriel Roubini has warned.

The International Monetary Fund (IMF) has cut forecasts for UK economic growth this year, warning GDP will grow by just 0.6% in 2012.

ON EUROPE