Economics

Hargreaves Lansdown has risen 5.8% to top the FTSE 100 leaderboard as the blue-chip index recovers from yesterday's decline.

Economic output per person in the UK will not recover to its pre-crisis peak until 2018, according to the National Institute of Economic and Social Research (NIESR).

Global markets, including the FTSE, pulled back sharply yesterday from multi-year highs, as political uncertainty in Spain and Italy spooked investors.

Analysts at Citigroup have hiked their 2013 FTSE 100 forecast to 7,000, suggesting the UK's blue chip index can still add another 10% by the end of the year.

Former Tory Chancellor Nigel Lawson has called for George Osborne to fully nationalise RBS and criticised the bank's so-called "star" traders.

BT provided an extra boost to a number of popular income portfolios today after its latest jump in profitability sent shares in the group to the top of the FTSE 100 leaderboard.

The FTSE 100 rose 6.43% or 379.07 points in January, making this the strongest start to a year since 1989.

Assets under management in the UK funds industry reached a record £658bn in 2012 and, although fixed income dominated overall sales, equities ended the year as the best-selling asset class.

RBS shares have continued a pullback that began in earnest earlier this week as the FTSE moved back below 6,300 in morning trading.

Terry Smith, manager of the Fundsmith Equity fund, has shared his surprise at the outperformance of the portfolio in 2012, saying he did not expect the fund to do so well in markets that have been flooded with liquidity by central banks.