Markets

UK inflation will not be allowed to fall back to its 2% target because Mervyn King and his colleagues are keen to prevent a disinflationary spiral, according to leading fund managers.

Scottish Widows Investment Partnership's head of wholesale distribution Kevin Addison has left the firm.

JO Hambro Capital Management is to launch a Global Opportunities fund as its UK Opportunities fund, run by the same managers, fast approaches its £1bn capacity limit.

The Bank of England's Monetary Policy Committee (MPC) voted five to four to maintain quantitative easing (QE) at £325bn this month, overruling the governor and three colleagues who called for further expansion.

The drop in inflation announced yesterday has paved the way for another round of quantitative easing by the Bank of England as early as next month, reports suggest.

Governments across Europe are set to buy Spanish and Italian bonds through two European rescue funds, a move the ECB hopes will send a signal to financial markets that Germany is behind the eurozone.

Business secretary Vince Cable (pictured) is set to announce plans today which will force companies to take binding votes on executive pay every three years.

Liontrust Asset Management has posted a loss after tax over the year to March following a series of acquisitions for the firm over the last 12 months.

Executive remuneration in the UK financial sector is "wildly out of line" with other parts of the market, according to outgoing IMA chief executive Richard Saunders.

The UK's inflation rate posted another surprise drop in May, falling to 2.8%, as the lack of activity in the UK continues to bring prices down sharply.