PIMCO's Gross tells Osborne to ditch austerity plan

Bill Gross, the manager of the world's largest bond fund, said Chancellor George Osborne needs to ditch austerity and 'spend money' if the UK is to emerge from its current economic malaise.

In an interview with the Financial Times, Gross, co-founder of PIMCO and manager of the $270bn PIMCO Total Return fund, said both the UK and Europe need to scrap austerity if they want to help their economies to grow. "The UK and almost all of Europe have erred in terms of believing that austerity, fiscal austerity in the short term, is the way to produce real growth. It is not," Gross (pictured) told the Financial Times.. "You have got to spend money." Gross' comments come at a time when the UK's economy is stagnating, with the latest GDP reading for the final quarter of 2012 showing...