Equities

TURKEY

Five years on and the financial crisis shows no sign of ending. But many investors, understandably fearing the prospect of further shocks, are looking in all the wrong places, says Tim Price, investment director at PFP Wealth Management.

If the US was to go off the fiscal cliff at the end of the year it would lead to a recession in the world's largest economy, the country's Congressional Budget Office (CBO) has warned.

An alleged rogue trade in US technology giant Apple's shares has left a US brokerage fighting for survival.

Baring Asset Management's chief investment officer said equity markets are facing the "mother of all rallies" before inflation, brought on by QE, brings the markets crashing down in five years' time.

Fund managers have raised cash levels in their equity and bond portfolios to levels last seen at the height of the Lehmans crisis as valuations in risk assets hit extremes.

The devastation caused by Hurricane Sandy over the past few days could cost the US economy as much as $20bn, according to the latest estimates.

BP has raised its dividend by 12.5% to 9c a share, but reported a fall in profits in the third quarter.

London's FTSE 100 had sold off around 0.6% just before US GDP figures were released on Friday, with mining stocks bearing the brunt of the sell off.

Apple, the world's largest company, revealed profits in the fourth quarter missed analysts' estimates, prompting a share price drop of 1.5% in after-hours trading.