Economics

Swiss banking giant UBS surprised analysts this morning with better than expected profits in Q3 despite the high profile tradng scandal which cost it CHF1.8bn (£1.3bn).

Polar Capital has appointed Ton Tjia to establish a European Market Neutral franchise for the group.

The risk of another UK recession is higher now than in recent months, according to Bank of England policymaker Martin Weale, who expects the economy to contract in the final quarter of 2011.

JO Hambro Capital Management's (JOHCM) Clive Beagles has bought into UK food giant Tesco for the first time in seven years amid expectations the group will renew its focus on payouts.

Opportunities

The FTSE 100 soared to its highest level since early August in morning trading, as investors remained hopeful of a resolution in Europe.

The US is set to see another ratings agency strip it of its AAA-credit rating by the end of the year, Bank of America Merrill Lynch has predicted.

Leading banks are at odds with European policymakers after lenders offered to take a haircut of 40% on their Greek bonds, but leaders said the proposals do not go far enough.

Investors have come under increased pressure to inflation-proof their portfolios as a fresh spike in CPI and RPI raised doubts levels will drop back to the Bank of England's 2% target in 2012.

Bank of England governor Mervyn King has been asked by the Treasury Select Committee to explain his decision to inject a further £75m into the UK economy through quantitative easing (QE).