Economics

France's minister for European affairs Jean Leonetti has signaled plans for a Europe-wide financial transaction tax are set to be legalised by the end of 2012, despite opposition from countries including the UK.

The European Financial Stability Facility (EFSF) has sold €3bn of debt in an oversubscribed auction, passing its first major test of 2012.

The FTSE 100 has extended losses as concerns over eurozone banks' need for more capital hit sentiment across the continent.

Iceland's finance minister said the country is still committed to adopting the euro despite fears over the stability of the single currency.

Europe's single currency reached a 15-month low against the dollar following a French bond auction this morning which saw almost all of the €8bn of debt targeted being sold.

Spanish banks will be required to find another €50bn in provisions to make up for ‘bad property assets' as the government carries out further reforms on the financial sector.

Hungarian bond yields soared above 10% yesterday after the government cancelled a bond swap auction, increasing fears the country will be the first in the EU to default on its debt.

The IMA has re-launched its Managed sectors with new names and definitions, apart from the Mixed Investment 0-35% Shares sector which has been delayed.

Switzerland's central bank is embroiled in a political storm after it was revealed the wife of the governor sold 500,000 Swiss francs shortly before the authorities intervened to cap the value of the currency.

Managers of the Guinness Global Energy fund have warned of an oil price spike to $150 per barrel if Iran were to carry out its threat of closing the Strait of Hormuz and blocking 15% of global oil exports.