eu

Neptune's Rob Burnett is eyeing European banks for his equity portfolio as he believes the sector will be supported by full fiscal union - an option he thinks is becoming increasingly likely to rescue Europe from its debt crisis.

The European Union has slashed its 2012 growth forecast for the eurozone by 1.3% as the European Commissioner warns the risk of a new recession has increased.

Plans to tackle the eurozone debt crisis have stalled, with France and Germany clashing over the size of stimulus needed to secure the future of the eurozone.

The European Union has banned the naked short selling of CDS on eurozone government debt, to prevent short selling aggregating price declines.

Slovakia has stalled in ratifying measures to revamp the eurozone's European Financial Stability Facility (EFSF) rescue fund, intensifying the threat of contagian within the continent.

George Osborne has said efforts in Europe to tackle the economic crisis are currently falling short of what is needed, warning the billions pledged by governments so far are not enough.

EAST OR WEST...

Emerging markets are by no means a safe haven, but the problems these countries face are minor in comparison to those of the more developed world, writes Jerome Booth, head of research at Ashmore Investment Management Limited.

Asset allocators are selling down equities to cut risk exposure as markets digest the EU's solution to the Greek crisis, and US debt fears persist.

Fitch has downgraded Greece to CCC status, one notch above default, due to growing concerns private investors do not want to participate in any bailout of the country.