Economics

UK interest rates will stay at historic lows for four more years as the economy struggles to return to normal growth levels, Citi has predicted.

The US economy added 155,000 jobs in December, broadly in line with analyst estimates, as the dollar reached a two and a half year high against the yen.

Goldman Sachs Asset Management (GSAM)'s chairman Jim O'Neill outlines five encouraging signs from the global economy and asks whether 2013 will be the year investors ditch fixed income in favour of equities.

Minutes from the latest Federal Reserve meeting suggesting its quantitative easing programme could end sooner than expected have hit equity markets overnight.

EQUITIES

Private bank and wealth manager C. Hoare & Co has shifted its asset allocation focus from the US to Europe for 2013 ahead of an expected boost for the single currency.

The future stability of the global economy has been threatened by the Bank of England and six of the largest central banks issuing close to $6trn of "essentially free" money since the financial crisis, according to PIMCO's Bill Gross.

Kames Capital's head of investment strategy Bill Dinning has quit his role to become an investment strategist for Coal Pension Trustee Services.

Global equities are rallying hard as strong data from China and a deal to avert the US fiscal cliff give cause for optimism.

A leading thinktank has urged the government to take drastic steps to stimulate economic growth in the UK, as another forecast a 50/50 chance of a triple-dip recession.