Economics

Markets opened lower today as investors paused for breath following last week's Europe-led rally.

Japan has intervened to weaken the yen for the second time in three months after the currency hit a fresh record high against the dollar.

Veteran investor George Soros has attacked the lack of leadership at the top of the eurozone and warned the new rescue deal to solve the debt crisis will only last between "one day and three months".

EUROPE ESCAPES ARMAGEDDON

The loss of France's AAA-rating would be a worse scenario for the global economy than the downgrade of the US, said Ignis chief economist Stuart Thomson.

The global banking system has been shaken by talk of possible defaults and contagion but managers are divided about whether this has opened up opportunities in the sector.

This week saw a round of updates from some of the UK's largest dividend payers, including BP, Shell, Glaxo and British American Tobacco. But is it time for investors to be selling the big names?

The FTSE 100 has dipped back below 5,700 but remains on course to post its largest monthly gain since 1990.

Henderson Global Investors has brought in ex-Chelsea and current Real Madrid boss José Mourinho to front its latest ad campaign.

Yields on 10-year Italian government bonds sold at auction have spiked to their highest level since the creation of the euro, as investors continue to fret over the health of the country despite yesterday's rescue deal.