Europe

Billionaire investor George Soros has warned a Greek default is "inevitable", and EU leaders must adopt a plan B to stem contagion to the rest of Europe.

European leaders last night bowed to the inevitable and conceded Greece is likely to default on its massive debt burden, which would be a first among the 17 countries using the euro, according to reports.

Managers are increasing their bets against the euro and forecasting falls of up to 20% in the single currency, even as the ECB continues to tighten monetary policy.

The European Central Bank has hiked its benchmark interest rate to 1.5% as expected.

The FTSE 100 fell below the 6,000 level in mid-morning trading as European markets absorbed Moody's downgrade of Portuguese debt to 'junk' status.

Dave Dudding, who manages Threadneedle's £955m European Select fund, has named a range of stocks he is backing to get through troubled times in Europe.

F&C's director of global strategy Ted Scott on the changing role of the ECB during the debt crisis.

Abnormal volatility in European markets is set to continue despite moves by Greece to overcome hurdles after passing its austerity package last week.

Threadneedle's head of European equities William Davies has said it is "inevitable" Greece will default in the next two years.

PIMCO's sterling portfolio head Mike Amey believes the 30-year bull market in UK gilts is dead and has shifted his focus towards emerging market currencies.