UK

Former Williams de Broë CEO Philip Howell is to join Rathbones as deputy chief executive as the group looks forward to 2013 with "more optimism".

ON UK GROWTH

UBS is reviewing the future of its underperforming UK Smaller Companies fund, managed by Frank Manduca (pictured).

The Bank of England's Monetary Policy Committee will tolerate missing the inflation target for the next two years in order to support the UK recovery, said Bank governor Mervyn King.

The Financial Services Authority (FSA) has uncovered evidence of incompetency among investment advisers at a number of banks and building societies - resulting in unsuitable advice in some cases - following a mystery shopping exercise.

Barclays shares rose almost 9% on Tuesday and ended the day up more than 7%, buoyed by news of a £1.7bn cost-cutting plan, announced in its strategic review.

The UK will avoid falling into a 'triple-dip' recession but external forces still pose a danger to the economy, according to the Confederation of British Industry (CBI).

The managers of the Ruffer investment trust fear the portfolio's strong performance in January may be a sign assets are correlated and will all plummet at the same time in a down market.

Psigma Investment Management has teamed up with TwentyFour Asset Management to seed a new fund for its clients - the TwentyFour Asset Backed Income fund.

Troy Asset Management chief executive Sebastian Lyon has cautioned on UK equities, suggesting falling UK corporate earnings are a warning sign for investors.