Markets

Terry Smith, manager of the Fundsmith Equity fund, has shared his surprise at the outperformance of the portfolio in 2012, saying he did not expect the fund to do so well in markets that have been flooded with liquidity by central banks.

MPs have heavily criticised Barclays' defence of its bonus programme, labelling former CEO Bob Diamond's £2.7m bonus for 2011 as "absolutely extraordinary".

Britain risks seeing its standard of living hit if it leaves the European Union, according to the head of the firm running the world's largest bond fund.

GLG's strategic bond fund manager Jon Mawby has warned investors to be wary of exposing their cash to interest-rate sensitive bonds such as gilts amid a surge in demand for protection.

David Scammell has left his position as head of UK and European interest rate strategies at Schroders.

Fidelity Special Situations fund manager Sanjeev Shah has warned investors that equities are at risk of a significant pullback this year as valuations approach multi-year highs.

Credit ratings agency Moody's downgraded six Canadian banks last night over fears the lenders had become more vulnerable to downside risks and rising house prices.

Neil Veitch, manager of the SVM World Equity fund, has benefited from increasing exposure to financials in the last six months, as the loosening of Basel III requirements for banks has boosted the sector.

MPs have called on the Chancellor to return to giving just one Budget statement a year.

THE BIQ QUESTION