Economics

PIMCO's Bill Gross has likened the recent sell-off in bonds to the "Battle of the Somme", but said the group is well positioned to fight on in future.

The FTSE 100 closed 1.4% down on Wednesday after new Bank of England Governor Mark Carney gave the market forward guidance, but sterling recovered after an initial drop.

The Bank of England has said it will not raise the base rate of interest before unemployment falls to 7%, and warned investors are still expecting rates to rise sooner than is likely.

Asian markets outside Japan fell again as strong growth in the US services sector stoked fears the country will soon begin tapering bond purchases.

Disappointing results have sent HSBC shares down 5% and erased the FTSE 100's early gains on the first day of trading this week.

Bank of England Governor Mark Carney will this week set out his long-awaited strategy for interest rates with a set of policies designed to reassure borrowers rates will stay low for many months to come.

Treasury yields have fallen back towards the 2.6% mark after US jobs figures for July missed expectations.

Consumer sector growth in China could bolster the economy and make the country a better long-term investment than it may currently appear, according to fund managers.

A senior Federal Reserve economist has criticised the European Central Bank for resisting further monetary stimulus.

A respected think tank has raised its UK growth forecasts for this year and next but warned any recovery is dependent on consumer spending.