Economics

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.

Capita Financial Managers has today sent a further letter to investors who lost money in the Arch Cru fund range to set out their individual entitlements under a £54m payment scheme.

France has slashed growth expectations for next year in a move which will boost fears about the lack of economic activity in Europe.

The Chancellor George Osborne has pledged to stop cash from British taxpayers being used to fund the eurozone bailout.

Chinese authorities are on the brink of contributing to the eurozone's bailout fund, but key conditions have to be met first,according to reports.

The VIX, or volatility index, sunk 15% to its lowest level in three months yesterday as European leaders announced plans to alleviate the debt crisis.

MPC member Paul Fisher has warned the UK is at risk of another recession, less than two years since the last downturn.

Leading economists say politicians' agreement on the eurozone debt crisis lacks clarity and is not hard-hitting enough.

EUROZONE DEBT DEAL

Fund inflows in September were at their lowest level since the credit crunch hit markets in October 2008, while quarterly figures were down two thirds on last year.