US

America's wave of new financial regulation is likely to prompt the country's biggest financial institutions to break themselves up, according to the chairman of the Federal Reserve.

Former Lehman Brothers CEO Dick Fuld believes the investment bank may have been able to survive if US authorities had given it the same assistance as its rivals.

ON NORTH AMERICA

Renowned fund manager Bill Miller of Legg Mason says after years of underperformance, the current market represents a "once-in-a- lifetime opportunity" to buy US large caps at a significant discount.

More than a tenth of the 7,380 banks in the US remain at risk of failure despite the sector posting strong profit growth during the second quarter.

Royce & Associates co-CIO Whitney George believes markets are entering a ‘supercycle' in M&A activity, as the subdued economic environment forces companies to attempt to acquire growth.

Whitney George, who oversees $30bn at US small-cap specialist Royce, has taken a position in Jupiter on the view asset managers will thrive as the developed world looks to increase savings.

Bob Doll, chief equity strategist at BlackRock, says stocks are being pulled in two directions and are likely to keep to a narrow trading range until economic data improves.

The FTSE 100 moved slightly lower in afternoon trading as double-dip fears persisted on the back of negative housing market data.

Warren Buffett's Berkshire Hathaway has emerged as a possible bidder for the Royal Bank of Scotland's Direct Line insurance business.