Economics

Insurers are planning to introduce a new product to help companies limit the financial fall-out when their brands or high-profile spokesmen such as Tiger Woods suffer reputational damage, reports the Financial Times.

At the start of 2009, the outlook for European equities was bleak. Banks had ceased lending to each other, liquidity was absent from the market and credit had become the scarcest commodity of all.

Schroders chief economist Keith Wade has warned Alistair Darling not to attempt to rein in the UK's burgeoning budget deficit too early, believing the UK economy is still "fragile".

The biggest financial crisis in modern British history heralded an unprecedented bonanza in fees for City lawyers, accountants and advisers, according to the definitive assessment of Treasury spending on the bail-outs.

Barclays is set to award its 22,000 investment bankers pay rises of up to 150% in an effort to beat Government moves to clamp down on multi-million-pound bonuses.

Lloyds Banking Group has launched a record-breaking £13.5bn rights issue at a near-40% discount as part of a massive fund raising to strengthen its balance sheet, reports The Telegraph.

The overall economic picture, from the combined newsflow at macro and individual company level, is one of uneasy stability.

Having recorded further heavy losses in early 2009 to reach a low point in March, share prices have rebounded strongly in recent months.

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.

With inflation a growing possibility, what are the implications for equities?