ECB

Manager believes quality over defensives has been fundamental to surviving crises in markets during first six years at Threadneedle.

ON BONDS

A PYRRHIC VICTORY FOR THE ECB

After admitting the MPC has lost control of inflation, Alan Wilde, head of fixed income and currency at Barings, asks if the Bank of England governor is losing his credibility.

The UK could fall back into recession at the end of this year, as high oil prices and the impact of the Japan earthquake weigh on global economic growth, said Fidelity's Trevor Greetham.

The European Central Bank is likely to hike interest rates just 25bp to 1.5% by the end of the year, as core inflation remains steady and has barely increased, said Alan Brown at Schroders.

ON BONDS

ON BONDS

The Monetary Policy Committee should have started raising the base interest rate last summer to combat inflation and must look to hike rates as soon as possible, said Henderson's Simon Ward.

A record monthly increase in eurozone inflation unexpectedly sent the annual rate to a 29-month high in March, strengthening expectations that the European Central Bank will tighten monetary policy further this year.