currency

Sterling has dropped sharply against the euro after data showed manufacturing growth fell to the lowest level in almost two years.

Equity and other financial markets have gone through periods of stress, but Neil Jamieson of ETF Securities, says sterling investors could have used FX as a protection strategy.

Schroders has expanded its fixed income team after poaching Bob Jolly from UBS.

Sterling jumped across the board after the Bank of England's latest report said inflation is likely to remain above target for longer, fuelling expectations the MPC will act sooner to tackle price rises.

Leading fund managers including RWC income duo Ian Lance and Nick Purves have removed US dollar hedges on their portfolios in the view the currency has bottomed, leaving them at odds with currency specialists who predict further falls.

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The Japanese authorities must stop the yen from strengthening, as exports are the country's only hope for significant growth, says Jim O'Neill.

The Japan crisis will trigger a global commodity boom as it requires more raw materials to rebuild its decimated infrastructure, says HSBC's chief economist Stephen King.

GOSLING'S GROUSE

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