Markets

The Bank of England's Financial Policy Committee (FPC) has said UK banks had a £25bn shortfall in their capital requirements at the end of 2012, as stricter capital requirements impacted balance sheets.

The third reading of UK's GDP growth for Q4 2012 has confirmed a 0.3% contraction between the third and fourth quarter.

Ecclesiastical's Robin Hepworth is backing the rally in Vodafone shares to continue even if the M&A rumours surrounding the stock begin to recede.

The pool of government bonds rated AAA by the three main rating agencies has shrunk by more than 60% since the financial crisis, according to new analysis.

Schroders will build a multi-manager arm to rival John Chatfeild-Roberts' Jupiter Merlin range once Cazenove's Marcus Brookes and Robin McDonald join the firm, global head of equities Peter Harrison has said.

Legal & General has acquired the remaining 75% of Cofunds it does not currently own, in a deal worth £131m.

The UK's five major banks could see their profits take a significant hit in 2012 as regulatory pressures and a series of recent scandals take their toll, according to KPMG.

The Governor of the Bank of England has said the financial crisis is "far from over" as he joined fellow central bank chiefs including Ben Bernanke to discuss economic policy.

Schroders is considering having two flagship UK equity funds running alongside each other once its £424m acquisition of Cazenove Capital is complete.

The S&P 500 is on the verge of passing its all-time closing high after rising as much as 0.5% in early trading.