Bank of America

ON BONDS

The City's leading investment banks are falling over themselves to get a slice of the $700m in fees on offer from Prudential's record $21bn rights issue.

Sarasin's Daniel Briggs has reduced sterling and euro exposure in the £231m GlobalSar IIID fund over concerns for public sector deficits.

The major UK banks are falling as the market absorbs the wider implications of Barack Obama's plans to keep US banks on a tighter leash.

There is little doubt the tide is turning for one of the most unloved regions. Investor sentiment towards Europe in July, as measured by the Bank of America Merrill Lynch fund manager survey, was at its lowest level since 2003.

A move to riskier stocks earlier in the year has paid off for Threadneedle's Weldon